7 people like this.

24 comment(s). Last comment by Jun Yu 2016-12-20 03:57

Blink22

106 posts

Posted by Blink22 > 2016-11-22 21:13 | Report Abuse

A simple business and hedge for currency as export earnings.

Invest1188

772 posts

Posted by Invest1188 > 2016-11-22 21:21 | Report Abuse

better run away, sekali US impose duty on the wood import like steel, FLB will be affected

Invest1188

772 posts

Posted by Invest1188 > 2016-11-22 21:22 | Report Abuse

Ricky, high cash is belong to the company, not the shareholders, if they dun return to you, then is no point

stockraider

31,556 posts

Posted by stockraider > 2016-11-22 21:26 | Report Abuse

Thats why warren buffet always try to tell investor....owning share ...must think like owning of business mah....!!

Thus FLB with good business with hefty cash is a good business to own for long term loh....!!

Invest1188

772 posts

Posted by Invest1188 > 2016-11-22 21:28 | Report Abuse

u own business with dropping margin??

Invest1188

772 posts

Posted by Invest1188 > 2016-11-22 21:29 | Report Abuse

why not find a better one

stockraider

31,556 posts

Posted by stockraider > 2016-11-22 21:33 | Report Abuse

Not easy to find a good business & at undervalue price like FLB loh...!! With no borrowing and with cash of Rm 0.86 per share mah....!!!
Div likely to be around Rm 0.08...u get a div yield of 5%pa better than fd loh....!!

Strong buy loh....!!

Blink22

106 posts

Posted by Blink22 > 2016-11-22 21:52 | Report Abuse

Some timing difference.
Nothing fundamental has changed.

Flintstones

1,762 posts

Posted by Flintstones > 2016-11-22 22:14 | Report Abuse

Thanks JT Yeo for the wonderful article

cheoky

2,823 posts

Posted by cheoky > 2016-11-22 22:31 | Report Abuse

ricky is definately going to be a great investor. only thing lacking is time. but he has plenty... great effort by ricky.

Posted by ABCDEFGHIJKLMN > 2016-11-23 02:25 | Report Abuse

I have been obsessed to see people saying the price is to less out cash per share, then the net will be the one that you paid for. It is true if you buy the whole business & have control over the cash & business.

But for normal investors like us who can never be the one who can touch the cash, which is beyond our reach, so it is meaningless to say our price is to pay for the net of cash.

In reality, you still pay for the full amount, not the one that less cash.

Posted by ABCDEFGHIJKLMN > 2016-11-23 02:27 | Report Abuse

So, it is misleading to say you pay for something with less cash.

Posted by Ezra_Investor > 2016-11-23 02:52 | Report Abuse

Posted by ABCDEFGHIJKLMN > Nov 23, 2016 02:25 AM | Report Abuse

I have been obsessed to see people saying the price is to less out cash per share, then the net will be the one that you paid for. It is true if you buy the whole business & have control over the cash & business.

But for normal investors like us who can never be the one who can touch the cash, which is beyond our reach, so it is meaningless to say our price is to pay for the net of cash.

In reality, you still pay for the full amount, not the one that less cash.

===================================================================

That is not correct.

Why is the role of Cash in a business?
1) Cash is used to reinvest back into the company - when a business uses the cash to reinvest into itself, it is able to expand the business, launch more product range, etc. This translates into higher profit in the future.

2) Cash is is distributed as dividends. Ever wondered where the money from dividend comes from? This is your answer.
So shareholders DO indeed receive the cash, but in the form of dividends.

3) When a company is liquidated, cash will most likely be returned to it's creditor first or any preferred shares shareholder, then accompanied by shareholder.
Since FLBHD has no debt, so there are no creditor. So shareholders DO indeed receive the cash.

Posted by taipan70 > 2016-11-23 17:10 | Report Abuse

May I know where about in MTIB you found the prices? Or did you work out from per piece price?

Ricky Yeo

1,637 posts

Posted by Ricky Yeo > 2016-11-23 17:36 | Report Abuse

http://www.mtib.gov.my/index.php?option=com_content&view=article&id=2034&Itemid=65&lang=en

Go there > Advanced search > Select year > View > Download file. Yea I calculate price per m3 unit. They only give total export amount on the month from a region on a particular type of wood.

stockraider

31,556 posts

Posted by stockraider > 2016-11-23 18:41 | Report Abuse

Posted by Ezra_Investor > Nov 23, 2016 02:52 AM | Report Abuse

Posted by ABCDEFGHIJKLMN > Nov 23, 2016 02:25 AM | Report Abuse

I have been obsessed to see people saying the price is to less out cash per share, then the net will be the one that you paid for. It is true if you buy the whole business & have control over the cash & business.

But for normal investors like us who can never be the one who can touch the cash, which is beyond our reach, so it is meaningless to say our price is to pay for the net of cash.

In reality, you still pay for the full amount, not the one that less cash.

===================================================================

That is not correct.

Why is the role of Cash in a business?
1) Cash is used to reinvest back into the company - when a business uses the cash to reinvest into itself, it is able to expand the business, launch more product range, etc. This translates into higher profit in the future.

2) Cash is is distributed as dividends. Ever wondered where the money from dividend comes from? This is your answer.
So shareholders DO indeed receive the cash, but in the form of dividends.

3) When a company is liquidated, cash will most likely be returned to it's creditor first or any preferred shares shareholder, then accompanied by shareholder.
Since FLBHD has no debt, so there are no creditor. So shareholders DO indeed receive the cash.

RAIDER COMMENT;

THE ABOVE ARE SILLY ARGUEMENT LOH....!!

A COMPANY HAVING ALOT OF CASH IS BETTER THAN A COMPANY HAVING ALOT OF BORROWING LOH....!!
A COMPANY HAVING NET CASH PER SHARE OF RM 0.86 IS BETTER THAN A COMPANY HAVING ONLY RM 0.30 NET CASH PER SHARE LOH.....!!

SO WHAT IS THERE TO COMPLAIN OF COMPANY HAVING ALOT OF CASH AND U BUY IT CHEAP....?? IT IS NOT BETTER THAN COMPANY HAVING ALOT OF DEBTS AND U BUY IT CHEAP LEH ??

tksw

12,604 posts

Posted by tksw > 2016-11-23 20:35 | Report Abuse

stock raider sifu, the receivable of FLB oso like cash account loh. you check check their debtors aging analysis and see... and oso hor, the Balance Sheet of FLB is clean until dunno how to describe. Wolun Buffeet said buy simple busines, no?

tksw

12,604 posts

Posted by tksw > 2016-11-23 20:36 | Report Abuse

plus hor the company held a lot of USD in the past, I assume it still doing so.

tksw

12,604 posts

Posted by tksw > 2016-11-23 20:37 | Report Abuse

today I bot a bit oso. slow slow buy, in case penggoreng wanna bombed again, then still slow slow buy, buy until penggoreng fainted

Bizfuneng

883 posts

Posted by Bizfuneng > 2016-11-24 00:19 | Report Abuse

Hi Rick Yeo - tq for sharing. You are a very good value investor. A very good article indeed.
Apprec if you can guide me how do you determine eg 2015 price of $1895.

I tried using the link you provided -Go to> Advanced search>various statistic check boxes like 1)country/state 2)category 3)Issued year 4)Issued month 5) View

I am confused. Apprec ur help. Thks.

==========================================
Ricky Yeo http://www.mtib.gov.my/index.php?option=com_content&view=article&id=2034&Itemid=65&lang=en

Go there > Advanced search > Select year > View > Download file. Yea I calculate price per m3 unit. They only give total export amount on the month from a region on a particular type of wood.

Ricky Yeo

1,637 posts

Posted by Ricky Yeo > 2016-11-24 08:18 | Report Abuse

Thanks Bizfuneng.

Here. http://www.mtib.gov.my/repository/e-stat%20export%20jan-dec%202015.pdf

Page 3 - Sabah Plywood column

Bizfuneng

883 posts

Posted by Bizfuneng > 2016-12-03 10:32 | Report Abuse

Thank you Ricky.

Blink22

106 posts

Posted by Blink22 > 2016-12-03 10:52 | Report Abuse

give u a like

Jun Yu

67 posts

Posted by Jun Yu > 2016-12-20 03:57 | Report Abuse

Another brilliant article.

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