Posted by stockmanmy > Jun 18, 2016 03:47 PM | Report Abuse KC Chong...you asked what is gut feeling and what besides your trusted formulas?
Your answer? Let’s see.
“I bring it up because I read so often sifus and bloggers in i3 place way too much attention to net cash position. They call it margin of safety. Way too much attention to net cash positions and accounting ratios and not enough attention to the actual business.”
Do you really know what value investing is, looking at net cash? Which value investor does that? OMG.
“the best predictor of share price is earnings growth”
Talk is no use. Simply shoot something has no value. Show us academic research which shows statistical significance on what you say.
“20 accounting formula, 5 valuation methods will not help you to make to make money. Valuations are too sensitive to the assumptions used.. Its like the tail wagging the dog., the ends justifying the means.”
Have you read any academic research on what is/are the proven predictors of share price movement? Have you read about “What has worked in investing”?
The answer is clear.
“Put all the time in looking for Companies with great earnings growth, ballistic earnings growth. Hints and indications can be obtained from price movements, industry analysis, company expansions, capital expenditures”
Again, talk no use and it has no value. Shows us something solid to prove your points.
there is nothing general about buying growth....and the tips and hints to identify growth companies.
as long as the growth story is genuine, you can even temporarily over pay but soon will be rewarded....and if the growth story turns out to be false, you can readily cut loss and move on.
No hang ups, no reluctance, nothing general and no value traps getting misled by 20 formulas and 5 valuation methods.
Raider Earnings growth beats cash in the hand any time. Take any two companies One with lots of potential One with lots of cash The first one trades at a high premium The second one trades at a discount.
Posted by stockmanmy > Jun 19, 2016 10:13 AM | Report Abuse
Raider Earnings growth beats cash in the hand any time. Take any two companies One with lots of potential One with lots of cash The first one trades at a high premium The second one trades at a discount.
Always true. In Malaysia as well as Wall Street.
Earnings growth & Cash In Hand?
Think first. How did you get CASH IN HAND from?
From Assets Disposal? Assets that have appreciated in value over the years.
From PAST EARNINGS SPURT?
IN ANY CASE CASH IN HAND SHOWS FRUIT IN HAND. THIS IS REAL AND TANGIBLE
AS FOR EARNINGS GROWTH?
IT MAY OR MAY NOT CONTINUE AS FUTURE IS YET UNKNOWN.
THOSE WHO THOUGHT OIL PRICE WILL ALWAYS REMAIN STRONG DID NOT FORESEEE SHALE OIL DANGER EMANATING FROM NORTH DAKOTA
1.99 STORE ROARING SUCCESS IN SINGAPORE CAME TO A HALT WITH THE SUDDEN OUTBURST OF SARS IN YEAR 2013
PARKSON DID NOT FORESEE THE HUGE SUCCESS OF E COMMERCE. ALIBABA 49% GROWTH LAST YEAR SHOWS THE DECLINING SHARE OF CONVENTIONAL MARKETING.
SO CASH IN HAND WILL BE FAR BETTER THAN CASH STILL OUT THERE.
MORE SO NOW WHEN THINGS ARE GETTING MORE UNCERTAIN BY CRASHING MARKETS EVERYWHERE. EVEN GEORGE SOROS IS HIDING IN GOLD. AND GOLD IS ANOTHER FORM OF STORED CASH
Nevermind calvin...i still remember u said bjcorp is the most undervalue stock...hold tight tight for 10 years maybe can come rm1...what a low life calvin give tp bjcorp rm10...LOL
Eh....i forget u also said mui tp rm20...selling hotel la, selling land la, boss selling his wife and divorce la...what else?? But...what is the mui price now?? Hahahahahaha
Posted by stockmanmy > Jun 19, 2016 10:13 AM | Report Abuse
Raider Earnings growth beats cash in the hand any time. Take any two companies One with lots of potential One with lots of cash The first one trades at a high premium The second one trades at a discount.
Always true. In Malaysia as well as Wall Street.
RAIDER THINK NET CASH COMPANY IS STILL BETTER THAN OVER LEVERAGE COMPANY LOH....!!
OF COURSE EARNINGS GROWTH ARE IMPORTANT, SAMETHING POSITIVE CASHFLOW, STRONG BALANCE SHEET ALL THESE SUPPORT A VALUATION OF SHARE PRICE MAH....!!
ALSO CASH IN HAND IS BETTER THAN 2 IN THE BUSH MAH.....!! A COMPANY THAT SHOW STRONG ACCUMULATION OF CASH IS VERY VALUABLE MAH...!1 ALSO IF USE CASH GENERATION WITH EARNINGS GROWTH, THIS WILL ALLOW A VERY GOOD SELECTION FACTORS OF VERY GOOD COMPANLES LOH...!!
RAIDER LIKE TO EMPHASIS THE COMBINATION OF BOTH FACTORS ARE MORE IMPORTANT LOH....U DON NEED TO XCLUDE ONE FACTOR LIKE GROWTH AGST ANOTHER IMPORTANT FACTOR LIKE CASHFLOW MAH...!!
IF USE THIS 2 METHODS TOGETHER.....YOUR SUCCESS IS VERY MUCH HIGHER LOH....!!
base on our gut feel value investing Penta will shoot up like crazy, because it has cash and growth, importantly got some big investors going to invest big big in Penta hehe
maybe another view that having cash could be better than great earning growths: having cash works across a wider spectrum of probable future scenarios, whereas having great earning growths target only a few scenarios predicted in advance. Still, like stockraider has pointed out, accepting both and not biased in one is definitely the optimal view.
Yeah agreed. Having one without the other is like having knowlegde but without the intellect to apply it, leading to stunted growth (value trap). Or the other way, being ambitious but without the knowledge of the pitfalls/shortcomings could lead to downfall (companies too depedent on receivables).
Posted by stockmanmy > Jun 19, 2016 11:34 AM | Report Abuse
Calvin Chong, raider and anyone else.....
Cash is only relevant to whether the company has enough liquid ratio and current ratio to survive.
Excessive cash has little effect on share price.
All the share price is about earnings growth.
If cash is so important , nobody will declare dividends anymore.
RAIDER SAYS THIS TYPE OF ARGUEMENT VERY EASY TO COUNTER LOH....!! IT IS JUST COMMON SENSE MAH....!!
IF UR WALLET HAS RM 1,000 RAIDER OFFER TO BUY AT RM 500 ....WOULD U SELL LEH ?? IT DOES NOT MATTER WHETHER U EARN RM 1 MILLION A YEAR...A BILLIONAIRE..IT IS JUST PLAIN COMMON SENSE...U WOULD NOT SELL YOUR WALLET WITH 1,000 CASH FOR MERE RM 500 CASH MAH !!
BUT SURPRISINGLY IN THIS INVESTMENT WORLD....THERE IS SUCH SUCKER LOH....!!
THEREFORE UNDERVALUE MARGIN OF SAFETY BUY LOH....!! GIVEN TIME U MAKE ALOT OF MONIES USING THIS INVESTMENT TECH LOH....!!
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Posted by stockmanmy > 2016-06-18 15:47 | Report Abuse
KC Chong...you asked what is gut feeling and what besides your trusted formulas?
Here is the answer above.