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....!!
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 > 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.
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.
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.
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.
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 ??
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?
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
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.
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Posted by Blink22 > 2016-11-22 21:13 | Report Abuse
A simple business and hedge for currency as export earnings.