Posted by iamsoonoob > 2016-06-03 06:48 | Report Abuse

jeffrey,i thought u said that global recession is coming right?why are u still doing stock analysis?shouldn't you be telling others to sell all stock they holding and time for market crash instead?

http://klse.i3investor.com/servlets/forum/600097699.jsp

Posted by Mohamad Jeffrey Ismail > 2016-06-03 07:01 | Report Abuse

I am not telling anyone to buy or sell any stocks.. what I post is for study purposes only.. decision to buy or sell is all is yours.

Posted by fung9815 > 2016-06-03 11:14 | Report Abuse

Favco is always dubbed as a great company - strong global brand, high cash pile and high return on capital.

However, I'd be cautious on factoring +ve growth into DCF valuation. Favco may have negative growth in the next several years due to the slowdown in O&G. The slowdown is reflected in their orderbook size, it used to be at >RM1.0b in the past few years.

Nonetheless, Favco will come back in long term (maybe even short term) as Muhibbah has been managing it very well.

Anyway, at market cap of only RM560m (RM259m ex-cash), you don't need a DCF model or even a calculator to know that the margin of safety is high.

Posted by Invest1188 > 2016-06-03 13:17 | Report Abuse

Afraid of impairment coming

Posted by 007 > 2016-06-04 07:21 | Report Abuse

please remember,the auther don't tell u to buy or sell. he is wasting his time to study.... for nothing.