Posted by shareinvestor88 > 2016-03-20 17:50 | Report Abuse

Not able to join your telegram . Pls check

Posted by shareinvestor88 > 2016-03-20 18:06 | Report Abuse

Updated telegram n still not able

Posted by Ben Gan > 2016-03-20 19:06 | Report Abuse

Use your phone and send me a telegram message. My phone is 016 932 1849

Posted by RosmahMansur > 2016-03-20 19:36 | Report Abuse

Good write up Ben Gan.

Another stock comparable to FLBhd is Liihen which possess cash of RM 120.4mil in cash and FD with a borrowings of just RM 6.9mil. The cash yield of LiiHen is 18% much more than our banks FD.

Posted by RosmahMansur > 2016-03-20 19:37 | Report Abuse

Also FYI, the minimum wage is only for Peninsular Malaysia. FLBhd is Sabah based and its plywood production and manufacturing will not be affected.

Posted by Probability > 2016-03-20 20:10 | Report Abuse

Return on Capital Employed....hmmm...interesting concept.

Posted by Desa20201956 > 2016-03-20 20:34 | Report Abuse

when the share price drop until it has no logic, the return on average capital employed is 25%,
the X factor of the company has become negative, it is time for the Company to issue some clarifications.

Posted by RosmahMansur > 2016-03-20 20:39 | Report Abuse

High ROACE means their management is efficient, am I correct Desa?

Posted by Desa20201956 > 2016-03-20 20:50 | Report Abuse

ROCE is profits divide by assets employed.
High ROCE means high profits for every $ employed.

it reflects the fact that is a very neat and simple operation.

problem with this kind of company...what happens after 1 or 2 good years?

it will be the same sawmill, with the same machineries and subject to the same limiting factors such as raw logs and market conditions.

has there been any transformational change? what steps taken to put the company to the next level? expansion plans? steps taken to reduce the company risks and fluctuations?


we call that, the negative X factors that quickly come to people's mind when share price drop until no logic.

Posted by RosmahMansur > 2016-03-20 20:58 | Report Abuse

Thanks for elaborating.

Meaning that for expansion plans in future,it has to increase its CAPEX which may eat into its FCF. However with its so much cash that it has currently, I think FLBhd can grow aggressively.

Posted by Desa20201956 > 2016-03-20 20:59 | Report Abuse

sawmilling and plywood...the most basic of all industries when a developing country starts to industrialize.

when prices are good, they mushroom all over the world.

when prices bad, they all die.

Has been like that for a 100 years. no change.

Posted by RosmahMansur > 2016-03-20 21:02 | Report Abuse

2020 is Japan organizing the Olympics. Plywood demand should increase from Malaysia.

Posted by Desa20201956 > 2016-03-20 21:10 | Report Abuse

in my experience, Japan has always been our largest importer of plywood.

This Company managed to break into the US market. It is surely a plus for them and their competence and a credit to them.

I am not bearish on the share. Just pointing out some obvious points.

Posted by RosmahMansur > 2016-03-20 21:21 | Report Abuse

Agreed to have pros and cons on certain issues. Not be too over confident and over optimistic which may leed to a let down later.

Posted by Desa20201956 > 2016-03-20 21:32 | Report Abuse

pros and cons...very important. That tests the analytic abilities.

all share prices have two components....valuation of existing business plus the X factors.
X factors can be positive or negatives, it is market's valuation of the Company's growth or negative growth discounted backwards.

everyone should pay equal attention to the X factors, not just the results announced.

Posted by RosmahMansur > 2016-03-20 21:39 | Report Abuse

Good point u have Desa. No wonder KYY always mention your name to me.

Posted by Desa20201956 > 2016-03-20 22:04 | Report Abuse

Successful people are quick to make decisions ( I include KYY in the category of successful people) slow to reverse decisions made.

Successful people have a bad habit they have to watch out for. They loath, hate to change decisions as doing that is an attack on their ego. ...in the stock market, this can be very painful.

For common people, we have to push them to make decisions,

For KYY, we have to push them before they can reverse their decisions.

Posted by shareinvestor88 > 2016-03-20 22:46 | Report Abuse

Dear Rosmah Lii Hen has 120mil cash and debt of 30mil. Net cash is 90mil.
I think u miss short term debt of 23mil.

Posted by shareinvestor88 > 2016-03-20 22:52 | Report Abuse

Dear ben , plz look at IQ group. Net cash 53mil. No debt. Total shares 88mil.
PE less than 10. Your opinion on IQ ?

Posted by shareinvestor88 > 2016-03-20 23:06 | Report Abuse

Dear Ben plz look into IQ group. Net cash 53mil. No debt. Paidup 88mil shares. PE less than 10

Posted by RosmahMansur > 2016-03-20 23:13 | Report Abuse

Tq for correcting shareinvestor...neithertheless, liihen still cash rich and i belief it can pare down its debts soon.

Posted by Ben Gan > 2016-03-21 09:01 | Report Abuse

Agreed that IQ is cash-rich with no borrowings. But its 3rd Qtr earning is a poor show when compared to the corresponding period of the previous year. It has dropped 31.85%. It's a good stock to monitor. Watch the chart for a good entry point.

Posted by shareinvestor88 > 2016-03-21 21:51 | Report Abuse

Dear rosmah yes i think lii hen can pare down the debt fast. Lii hen net cash 90mil meaning 50c per share net cash. EPS 10c last 3 months. Liihen shud be able to earn 30-40c per share this year. Applying pe of 10x lii hen is worth 3.00 to 4.00

Posted by RosmahMansur > 2016-03-21 21:54 | Report Abuse

Liihen, FLBhd and Chinwell fullfills the criteria of a no brainer investment. It is cash rich with cash yield of 9-18% much better than the banks FD.

Posted by lux88 > 2016-03-21 21:59 | Report Abuse

Wow,no brainer investment, is it?
Then why not all in, use margin buy.
Let c u run or not when USD drop below RM4.

Posted by RosmahMansur > 2016-03-21 22:06 | Report Abuse

Trade and invest within your means. Only silly and brainless ppl like u will put all your eggs into one basket.

Posted by Harold Huong > 2016-03-21 22:19 | Report Abuse

Rosmah, where you get news min wages impose in West only. East Msia also impose min wages, just the different is Sabah have too many Foreign worker until Immigration unable to take action in most sector. Even Kopitam also employ foreign worker

Posted by RosmahMansur > 2016-03-21 23:25 | Report Abuse

@ harold Huong : regarding the recent hike.

http://www.thestar.com.my/news/nation/2016/03/18/foreign-worker-levies-penisular-malaysia/

Pls read my above statement carefully.

Posted by lux88 > 2016-03-22 14:45 | Report Abuse

Rosmah veli smart, please buy more your no brainer top pick.
USD to RM 3.99 liao.

Posted by RosmahMansur > Mar 21, 2016 09:54 PM | Report Abuse

Liihen, FLBhd and Chinwell fullfills the criteria of a no brainer investment. It is cash rich with cash yield of 9-18% much better than the banks FD.

Posted by shareinvestor88 > 2016-04-03 17:54 | Report Abuse

Dear Ben FL net cash is 57.2m × 17.8m investment = 75m net cash