Posted by Icon8888 > 2016-02-06 15:59 | Report Abuse

I don't agree with KC on everything, but I seldom have reason to critucise his articles

The main reason is because he applies the same principles to his own stocks as well as other people's stocks

Some people I know don't do that. They criticise your stocks for certain weaknesses. But when come to their own stocks, those weaknesses become acceptable

That is the part that I find objectionable

Posted by Icon8888 > 2016-02-06 16:03 | Report Abuse

KC criticise VS for its poor cashflow

At the same time, he buys stocks that has strong cash flow

Because of that, I know he is sincere in his view about free cash flow and that he is not criticizing out of personal differences

Posted by PlsGiveBonus > 2016-02-06 16:07 | Report Abuse

How to invest in foreign company

Posted by Lee David > 2016-02-06 16:09 | Report Abuse

Hi kcchongnz. By the way, happy chinese new year. I disagree what you are talking about vs industry. This is because the example you use is unfair and unreasonable to vs industry. As all we know, Hon Hai market value is far more greater than vs industry and Hon Hai is top 1 OEM manufaturer in Asia. The example you use is something like you use bank of Amerika compare to maybank. Does it make sense?
Like what Mr koon yew yin said, we should have businessman insight.Vs industry will have more contract this year and also the tppa winner.
What I believe is the future of vs is brilliant. Therefore, i find it unfair to vs industry. Thank you!

Posted by moneySIFU > 2016-02-06 16:15 | Report Abuse

I like this statement:

Posted by Icon8888 > Feb 6, 2016 03:59 PM | Report Abuse

I don't agree with KC on everything, but I seldom have reason to critucise his articles

The main reason is because he applies the same principles to his own stocks as well as other people's stocks

Some people I know don't do that. They criticise your stocks for certain weaknesses. But when come to their own stocks, those weaknesses become acceptable

That is the part that I find objectionable

KC criticise VS for its poor cashflow

At the same time, he buys stocks that has strong cash flow

Because of that, I know he is sincere in his view about free cash flow and that he is not criticizing out of personal differences

Posted by soojinhou > 2016-02-06 16:21 | Report Abuse

Lee David, just in case you don't know, bigger companies generally command higher valuation than smaller companies, not the other way around. Therefore, Hon Hai should command higher valuation, not lower, than VS, purely base on market capitalization.

Posted by buddyinvest > 2016-02-06 16:55 | Report Abuse

Happy cny to kcchongnz. Wish you prosperous years ahead. Your contributions to i3 are immense, benefitting many in the proces.

Posted by feiloh > 2016-02-06 17:06 | Report Abuse

VS again ah....

Posted by Lee David > 2016-02-06 17:09 | Report Abuse

Thank soojinhou for ur knowledge. And how everyone think about vs industry? Do it right timw to collect?

Posted by Sulcata > 2016-02-06 17:38 | Report Abuse

Thanks for sharing

Posted by Koon Bee > 2016-02-06 17:41 | Report Abuse

This kcchong very small heart always wanna cari pasal with KYY

Posted by kcchongnz > 2016-02-06 18:53 | Report Abuse

Posted by Lee David > Feb 6, 2016 04:09 PM | Report Abuse
Hi kcchongnz. By the way, happy chinese new year. I disagree what you are talking about vs industry. This is because the example you use is unfair and unreasonable to vs industry. As all we know, Hon Hai market value is far more greater than vs industry and Hon Hai is top 1 OEM manufaturer in Asia. The example you use is something like you use bank of Amerika compare to maybank. Does it make sense?
Like what Mr koon yew yin said, we should have businessman insight.Vs industry will have more contract this year and also the tppa winner.
What I believe is the future of vs is brilliant. Therefore, i find it unfair to vs industry. Thank you!

Posted by Lee David > Feb 6, 2016 05:09 PM | Report Abuse
Thank soojinhou for ur knowledge. And how everyone think about vs industry? Do it right timw to collect?


David, happy Chinese New Year to you too. You notice what I have shared with you are all facts and figures from public information. I do not twist, or at least attempt not to twist any figure. I just shared my view and have no personal interest in this company. So I find it strange why you said it is unfair in my report.

I know nothing about the future of V.S. I have no so-called "businessman insight" of V.S. Most of all, I know nothing about how its share price will perform in the future.

Soo Jin Hou has aptly answered one part of your questions. Market leader does command a premium in valuation, as its earnings and cash flows generally are more stable and predictable, and business is more resilient.

If you believe VS will have more contracts, more importantly makes more money, a lot more the next few years than this year, and that its future is "brilliant", go ahead and invest in it. You need to have an independent mind to make extra-ordinary return from the market.

But my advice is make sure you are certain about it, with some analysis done by yourself, and not just merely believe what others, including me, said.

Posted by coolinvestor > 2016-02-06 19:09 | Report Abuse

Just for curiosity sake. How come it's fCf is negative while it's cash balance is 300+ mil? Any ideas? Cheers

Posted by HakChai > 2016-02-06 19:10 |

Post removed.Why?

Posted by buddyinvest > 2016-02-06 19:32 | Report Abuse

Let's give export stocks a break. Revisit them 10 years from now. It's time to switch to other theme play.

Posted by HakChai > 2016-02-06 20:30 | Report Abuse

What's the theme?.

Posted by kcchongnz > 2016-02-06 23:00 | Report Abuse

Posted by coolinvestor > Feb 6, 2016 07:09 PM | Report Abuse

Just for curiosity sake. How come it's fCf is negative while it's cash balance is 300+ mil? Any ideas? Cheers

Cash in the balance sheet can be from financing activities, i.e. company can borrow more money from banks, or issues more shares to get cash.

Free cash flows is what is left behind after capital expenses of net inflows of cash from its core operation, and not from additional borrowings and issuance of new shares, which was precisely what V.S did.

Posted by kcchongnz > 2016-02-06 23:11 | Report Abuse

Posted by Koon Bee > Feb 6, 2016 05:41 PM | Report Abuse
This kcchong very small heart always wanna cari pasal with KYY


Great man discusses about issues, sharing of knowledge. Only small heart man talks about personality, and attacking people.

Posted by SaufiSucks > 2016-02-06 23:14 | Report Abuse

But kc got numbers to show. Unless the numbers are fake or the company he compare w s fake. Otherwise no challenge pls

Posted by hissyu2 > 2016-02-06 23:48 | Report Abuse

Lee David Hi kcchongnz. By the way, happy chinese new year. I disagree what you are talking about vs industry. This is because the example you use is unfair and unreasonable to vs industry. As all we know, Hon Hai market value is far more greater than vs industry and Hon Hai is top 1 OEM manufaturer in Asia. The example you use is something like you use bank of Amerika compare to maybank. Does it make sense?
Like what Mr koon yew yin said, we should have businessman insight.Vs industry will have more contract this year and also the tppa winner.
What I believe is the future of vs is brilliant. Therefore, i find it unfair to vs industry. Thank you!

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

I beg to differ. Whatever KC shown in article above are not the number but ratio and percentage. KC is talking about PE,EV/EBIT, Cash Yield, ROA, ROE and so on. Is he telling everyone kedai runcit is bad business because it earned only 100rm per day but AEON could earn 10m per day, so AEON is better? NO.

If the kedai runcit is using 10RM of cost to earn 100rm but AEON is using 10b of cost to earn 10m per day. Which one is a better business? I am pretty sure RATIO and PERCENTAGE are pretty "fair" to judge, isn't?


And like what soo said, generally big cap company generally with high valuation. Like Google, it has much higher valuation because everyone BELIEVE they could be better than other smaller cap. So, maybe you are right that it is unfair. But it is unfair to Hon Hai, perhaps.

Posted by Ian Bong > 2016-02-07 11:00 | Report Abuse

kcchongnz Posted

"Great man discusses about issues, sharing of knowledge. Only small heart man talks about personality, and attacking people."

How aptly said.

Thank you kcchongnz for this valuable and well-presented analysis.

Posted by coolinvestor > 2016-02-07 16:04 | Report Abuse

Good info too. In this case it will be nice to enter around the price of 1.20. But warrants are way too expensive for me. 0.40! Crazy

Posted by Kevin Wong > 2016-02-07 18:46 | Report Abuse

Gong Xi Fa Cai everybody!

Posted by Chok Chun Ynh > 2016-02-09 01:44 | Report Abuse

VS paid 21mil to its director in 2015.

Posted by goreng_kaki > 2016-02-10 21:36 | Report Abuse

Skp have a PE ratio of 26......i think you should write more about skp not vs.....

Posted by kcchongnz > 2016-02-10 22:47 | Report Abuse

Posted by goreng_kaki > Feb 10, 2016 09:36 PM | Report Abuse
Skp have a PE ratio of 26......i think you should write more about skp not vs.....

I don't know about every stock in Bursa. But I do know a little about V.S as a retail investor, and I find this stock very interesting,and hence I write quite a bit about it to share with people like you. I notice many who hold this stock, and still holding, and those contemplating buying this stock, do have interest reading about what I have written about V.S.

Sharing is caring mah. Of course I don't force you to read if you don't wish to.

So far, what is the problem you have about me writing about this stock? Have I got facts and figures wrongly presented? Have I twisted any fact? Please let me know and I will correct them, asap.

Posted by ycbang > 2016-02-11 21:16 |

Post removed.Why?

Posted by TAH > 2016-02-11 23:09 | Report Abuse

Ycbang. u are very rude.If u don"t like his articles ,u don't need to scold him lah. Have some respect .

Posted by enning22 > 2016-02-15 12:03 | Report Abuse

how silly, one keeps raising doubt about Vs ,from a year back , while investors witnessing price picking up from 2.00 at (1$ par value)to 8.00,then split into 20sen par value) , now corrected down to 1.20 , equacalent 6.00 (,20sen x5), it is time to reconsider somebody valuation method which obviously contain much flaws.

Posted by kcchongnz > 2016-02-15 12:11 | Report Abuse

Posted by enning22 > Feb 15, 2016 12:03 PM | Report Abuse
how silly, one keeps raising doubt about Vs ,from a year back , while investors witnessing price picking up from 2.00 at (1$ par value)to 8.00,then split into 20sen par value) , now corrected down to 1.20 , equacalent 6.00 (,20sen x5), it is time to reconsider somebody valuation method which obviously contain much flaws.


It will be more fruitful for discussions here if you can identify the "flaws" in these valuation techniques and deliberate your thoughts here, rather than just just say they "contain much flaws" without any basis.

I will be very happy to hear from you.

Be aware that in stock market, price isn't equate to value.

Posted by neonwong > 2016-02-15 12:21 | Report Abuse

This forum is a platform to share Information & Opinions. Kcchongnz and others are just unselfishly sharing his analysis and opinions.It is not a recommendation to buy or sell.

Learn from that. If you think you have a different perspective to add, please do so. Lets Agree to Disagree.

Great minds discuss IDEAS. Small minds discuss PEOPLE.

Posted by handsomejong > 2016-02-15 17:49 | Report Abuse

JUST NOT SURE HOW U COME OUT WITH DY OF 1.2%. ARE U SURE?

Posted by kcchongnz > 2016-02-15 18:09 | Report Abuse

Posted by handsomejong > Feb 15, 2016 05:49 PM | Report Abuse
JUST NOT SURE HOW U COME OUT WITH DY OF 1.2%. ARE U SURE?

I think I got it from a public website. But the dividend of 1.5 sen is for the interim dividend 2016. So the DY stated as 1.2% which should be based on the whole year is not right. It should be higher.

Thanks for pointing out.

Posted by handsomejong > 2016-02-15 18:25 | Report Abuse

IT'S 12.1% TO BE EXACT. SO IT'S NOT THAT BAD AFTER ALL.

Posted by kcchongnz > 2016-02-15 18:30 | Report Abuse

Posted by handsomejong > Feb 15, 2016 06:25 PM | Report Abuse
IT'S 12.1% TO BE EXACT. SO IT'S NOT THAT BAD AFTER ALL.

Your number is most likely wrong too.

Posted by handsomejong > 2016-02-15 18:36 | Report Abuse

OK WAITING FOR YOUR CORRECT FIGURE

Posted by Lee Yih Yeong > 2016-02-15 18:39 | Report Abuse

the ROIC is damn high 13.4%, which is good for company future.

Posted by kcchongnz > 2016-02-15 18:42 | Report Abuse

Posted by handsomejong > Feb 15, 2016 06:36 PM | Report Abuse
OK WAITING FOR YOUR CORRECT FIGURE

Posted by handsomejong > Feb 15, 2016 06:25 PM | Report Abuse
IT'S 12.1% TO BE EXACT. SO IT'S NOT THAT BAD AFTER ALL.

I think you probably use the pre-split price as the base of your computation.

Posted by kcchongnz > 2016-02-15 18:43 | Report Abuse

Posted by Lee Yih Yeong > Feb 15, 2016 06:39 PM | Report Abuse
the ROIC is damn high 13.4%, which is good for company future.

You are not wrong. ROIC is not bad.

Posted by handsomejong > 2016-02-15 22:30 | Report Abuse

TOTAL DIVIDEND LAST YEAR=14.4C, LAST PRICE=1.19

0.144/1.19=12.1%

CORRECT ME IF I'M WRONG

Posted by kcchongnz > 2016-02-15 23:28 | Report Abuse

handsomejong TOTAL DIVIDEND LAST YEAR=14.4C, LAST PRICE=1.19

0.144/1.19=12.1%

CORRECT ME IF I'M WRONG


Yes, you are wrong.Those dividends were given for the last year before the split. Hence you need to divide by 5.

Posted by handsomejong > 2016-02-15 23:57 | Report Abuse

SO IT'S 2.42%

Posted by SC > 2016-02-16 11:26 | Report Abuse

we are investing on the future business/incomes of VS and Hon Hai.
hon hai is too big to grow bigger but vs has plenty of room to grow bigger.
we should use the FIV (future intrinsic value) and not past/current intrinsic value if we are investing for future gain.

Posted by kcchongnz > 2016-02-16 16:44 | Report Abuse

Posted by SC > Feb 16, 2016 11:26 AM | Report Abuse

we are investing on the future business/incomes of VS and Hon Hai.
hon hai is too big to grow bigger but vs has plenty of room to grow bigger.
we should use the FIV (future intrinsic value) and not past/current intrinsic value if we are investing for future gain.


I didn't know there is such thing as past/current and future intrinsic value of stock.

The intrinsic value of a stock is the the discounted value of all its future cash flows to the investors.

Posted by noobnnew > 2016-02-16 17:03 | Report Abuse

Maybe FIV is a new method teach in Wharton. LOL