Posted by soojinhou > 2016-02-11 16:18 | Report Abuse

Can't agree more. I've been buying SHH on the way down.

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

i like too

Posted by jovi817 > 2016-02-11 17:54 | Report Abuse

Im buying

Posted by jovi817 > 2016-02-11 17:56 | Report Abuse

All the way down.... At 1.65, 6 % dividend yield is highly possible

Posted by calvintaneng > 2016-02-12 00:56 | Report Abuse

DO YOU GUYS KNOW THAT PM CORP WAS ONCE THE TOP NO ONE SHARE HOLDERS OF SHH?

GO AND SEE THE PAST ANNUAL REPORTS OF SHH YOU WILL NOTICE THAT PAN MALAYSIA CAPITAL WAS THE TOP SHARE HOLDERS OF SHH. AND PM CORP OWNED PM CAPITAL

PM CORP MEANS

PAN - PAN MEANS ALL OR EVERYTHING.
MALAYSIA - ALL OF MALAYSIA
CORPORATION - A CORPORATION IS A GROUP OF COMPANIES AUTHORIZING A SINGLE ENTITY.

Posted by CCCL > 2016-02-12 02:47 | Report Abuse

I know that PM Capital sold at 60 cents to 90 cents to me. They sold 5 million shares at very very low price.

Posted by traderman > 2016-02-12 14:40 | Report Abuse

DO YOU GUYS KNOW THAT calvintaneng is a joker?

Posted by JT Yeo > 2016-02-12 23:36 | Report Abuse

I think the market looks more than a few quarters ahead and if you look at the past 10 years ROE, only 1 year exceeded 10%, and looking at the average FCF over 10 years, they don't look that great.

FCF of 10 mil in my opinion is aggressive not conservative. That is the highest figure over the past 10 years. Add in depreciation of 2.5 mil, you need cash flow from operation of 12.5 mil to generate FCF of 10 mil, this hasn't include growth capex.

And another more critical thing why 10 mil is aggressive. Over past 10 years, depreciation stood at 34 mil in total but over the same period, capex is standing at 14-15 mil, that is 50% below depreciation. Although i have not study the annual report, but this can really mean the company is underinvesting in maintenance or upkeeping of their machineries, which eventually they will have to fork out another 20 mil for upgrade or else old machineries will start to pull down revenue.

Compare that with Homeritz, depreciation 17mil in total and capex at 19 mil. And lastly if the company over the long term can only generate ROE of closer to 10%, why should it be worth more than book value? Of course that is unless you are confident the ROE will improve over time.