A thing about the Sunway FCF. Large portion of capital expenditure for property companies doesn't come from acquiring property, plant & equipment but comes from buying lands. A manufacturing buy more machines to produce more products; a property needs to constantly buy more lands to sell more house (products).
Therefore the FCF is normally 'overstated' as it doesnt include money spent acquiring lands for development purposes.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
JT Yeo
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Posted by JT Yeo > 2016-02-07 21:53 | Report Abuse
A thing about the Sunway FCF. Large portion of capital expenditure for property companies doesn't come from acquiring property, plant & equipment but comes from buying lands. A manufacturing buy more machines to produce more products; a property needs to constantly buy more lands to sell more house (products).
Therefore the FCF is normally 'overstated' as it doesnt include money spent acquiring lands for development purposes.