Posted by probability > 2017-03-22 20:04 | Report Abuse

If we can come out with a basis on that...then we can talk what should be the right value versus actual. This is before we talk about ROIC or ROE..etc...

I think this argument should be quite straight forward for everyone to understand.

Posted by IamGoogle > 2017-03-22 20:19 | Report Abuse

Ricky, you are no doubt very good in analytical skills. I have been reading your comments everywhere I came across in some forums.

You may not interested to hear what I said & I don't think you will accept the facts that sometimes you dig too deep & too details.

In my opinion, ratios & figures served for business decision, while business decision is to be made based on considerations of many factors, internally & externally.

Internal factors include financial planning, positions & abilities, human resources, management skills, know-how & big ambition management team.

In CAB case, External factors include government policies, competitors, technology, human habits, flu, virus, etc....

Posted by IamGoogle > 2017-03-22 20:24 | Report Abuse

Go ask around in real world, especially ask those have been in business & successful for years, When come to business decision, will they solely or purely rely on accounting reports? They will tell you they will only see how much they have in their bank statement & will decide from rhwre

Posted by IamGoogle > 2017-03-22 20:25 | Report Abuse

From there, sorry

Posted by moneySIFU > 2017-03-22 20:27 | Report Abuse

Well said, IamGoogle

Posted by moneySIFU > 2017-03-22 20:39 | Report Abuse

I agreed what IamGoogle said, Ricky Yeo is one of the best analyst in figures in i3.

Posted by chl1989 > 2017-03-22 21:29 | Report Abuse

IamGoogle, cab looks all good but i have only one concerns. why is its d&a so high? why they need so much for maintenance? almost equivalent to its net profit every year. appreciate if u can share your view.

Posted by moneySIFU > 2017-03-22 22:12 | Report Abuse

hi, chl1989, depreciation & amortisation is just a provision made for accounting purposes and it is non cash item.

The purpose of D&A is to show the usage of the assets over its useful lives.

For example, a photocopier purchased for RM5000 & it is estimated to last for 5 years, so the company will provide depreciation of 20% every year & a depreciation of RM1,000 will become expenses of the company.

After 5 years, the book value of the photocopier will become zero.

Since it is not actual expenses paid by cash, it will be added back in the cash flow statement.

For example, depreciation for 2016 was RM21.6mil (page 91) and it added back in cashflow statement (page 63).

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=178563&name=EA_DS_ATTACHMENTS

Posted by moneySIFU > 2017-03-22 22:14 | Report Abuse

You can get the details of depreciation on page 96

Posted by probability > 2017-03-22 22:45 | Report Abuse

omg..xuewen...rahsia terbongkar!

Is he the same one as 'sostupid' - where we need to preserve the brain like Einstein's?

Posted by KLCI King > 2017-03-22 22:51 | Report Abuse

I am still here & I never change my ID, I have only 1 ID. You have more than 15, I guess, all under xuewen & ALL got banned forever by i3 admin.

WHY? Ask yourself, xuewen.

Posted by KLCI King > 2017-03-22 22:52 | Report Abuse

I never afraid of you, xuewen, I am happy to see you.

Posted by KLCI King > 2017-03-22 22:53 | Report Abuse

Anyway, good luck to you, xuewen. I go to sleep liao, bye.

Posted by culbertlim > 2017-03-22 23:56 | Report Abuse

hi xurwen come bqck to gadang tksw sifu nred younthere

Posted by culbertlim > 2017-03-22 23:56 | Report Abuse

xue wen come gadang

Posted by culbertlim > 2017-03-23 00:06 |

Post removed.Why?

Posted by chl1989 > 2017-03-23 00:30 | Report Abuse

tq moneysifu for your kind explanation. The way i look at D&A, is like required maintenance or cost for you to buy new machines to replace the obsolete ones in order to maintain your current business. I understand that not all machines which have been depreciated to zero book value are obsolete. So, my question is actually "are they spending too much capex to cover D&A to maintain current business instead of expansion?" Is it the nature of broiling industry?

Posted by chl1989 > 2017-03-23 00:31 | Report Abuse

Or anyone done peer to peer analysis on their efficiency?

Posted by Stock Kingdom > 2017-03-23 02:54 | Report Abuse

CAB Cakaran - undervalued hidden gem
https://klse.i3investor.com/blogs/stockkingdom/118895.jsp

Posted by Ricky Yeo > 2017-03-23 04:45 | Report Abuse

@ probability - consumption per capita growth is far from being certain if it will catch up to Malaysia. Coca-cola entered Indonesia market ages ago and see the growth potential due to huge population, extremely low Coke consumption vs US (1.4% of US consumption in 1988), massive muslim population that rules out alcohol, but today it remains below world average level. So something worth while to investigate why Indonesia consumption is 25% of M'sia. Might have to do with income per capita I don't know.

@ Iamgoogle - I am always interested to hear and learn what I don't know. You are right. There are many factors that influence business decision and what strategy the company decides to take. And there are many things that can't be readily captured by figures i.e the culture of PBB and LPI that make them a standout in their own industry. But at the same time, it is also true that strategy shapes decisions, decisions drive result, which eventually reflects in financial statement, although there will be a time lag.

Today CAB strategy is to grow, thus their decision is to take over Farm Best and move into Indo. Thus our role as investors is to ask "Given these strategies, how much would they need to put into the business (capex), how much cash flow, and when will they be generated?" Discounting those 3-5 years cash flow back to present gives you a valuation. I will be BS-ing you if this is easy to do, it's not. But 3 simple things, how much they going to put in, how much will they take out, and when.

Posted by KingOfLeons > 2017-03-23 05:24 | Report Abuse

Ada contingency plans ka should bird flu epidemic hit..... Total wipe out loh

Posted by Stock Kingdom > 2017-03-23 07:14 | Report Abuse

I trust WealthWizard & his stock selection skills, his write up on a stock is unbelivable great

Posted by Stock Kingdom > 2017-03-23 07:17 | Report Abuse

There was no iphone, ipod, ipad, ixxxx before Steve Jobs went for it.

There was no McDonald in Malaysia before Vincent Tan brought it into Malaysia.

There was no Astro before Ananda Krishnan started it in Malaysia.

Posted by 张天师买股票 > 2017-03-23 07:24 | Report Abuse

做生意说的勇往直前，眼光放远，大胆假设，小心执行。

如果做事总是怕这个怕那个，一眼就知道是打工还是做生意的。

Posted by 张天师买股票 > 2017-03-23 07:29 | Report Abuse

CAB雄踞北方，之所以要买FARM BEST就是看中他们在南方的市场强大占有率，买下FARM BEST能让CAB在全马各地都有肉鸡生产地，就算吉兰丹有传禽流感，也不会影响其他的鸡场。

CAB也逐步建立关闭式的养鸡场来应对。

Posted by 明天会更好 > 2017-03-23 07:45 | Report Abuse

张天师,赞！

Posted by 明天会更好 > 2017-03-23 07:48 | Report Abuse

看来有人喜欢转牛角尖，一直在那里争论，搬出一大推道理，就一句，爱现！

Posted by Wonderful Today > 2017-03-23 07:54 | Report Abuse

Ricky　Yeo recommended APM, go see how good his stock selection & how good is his return. LOUSY!

TALK BIG BUT DELIVERED LITTLE!

https://klse.i3investor.com/blogs/JTYeo/107555.jsp

https://www.facebook.com/notes/contrarian-investing/apm-automotive-holdings-the-rule-of-minimum-valuation/1745265392395019

Posted by Wonderful Today > 2017-03-23 07:55 | Report Abuse

Don't be confused by this Ricky Yeo, he is a talk big guy but never prove his skills

Posted by KLCI King > 2017-03-23 08:02 | Report Abuse

Thank you for pointing out, Wonderful Today, no wonder Ricky Yeo never participate stock pick competition. Look at how Calvin Tan perform in stock pick 2017, terrible. Both always talk big.

Posted by moneySIFU > 2017-03-23 08:15 | Report Abuse

Good to see so many people here in this forum exchanging ideas & opinions, let's see how market decide where it should be.

Posted by Ricky Yeo > 2017-03-23 09:12 | Report Abuse

Let me guess - you checked what I wrote and compare the price, and make a conclusion. How convenient. It is always easy to shout around than sit down and write, cause it is hard work, and no one would bother doing that.

Posted by Stock Kingdom > 2017-03-23 09:21 | Report Abuse

That's what we want, Rikcy Yeo, write so much of things but never bring good direction to investors, it is useless, I rather buy Peter Lynch's book, it is more useful. Because he had fantastic track records.

We have money, we need to buy good stock, simple as that.

Posted by Stock Kingdom > 2017-03-23 09:23 | Report Abuse

I am a layman type investor, I can't read too technical things, I don't really understand what are you talking, sorry to say that, if you can make it simple in your comments, guess everyone will appreciate that.

Posted by Equityengineer > 2017-03-23 09:23 | Report Abuse

It's wonderful knowledge just to read the forum ..

Posted by apeng > 2017-03-23 09:39 | Report Abuse

in share trading there is no sure win , there is can win
we need wwealthwizard and ricky yeo hard work work to come a right decision so the we can win with a good calculated risk

Posted by apeng > 2017-03-23 09:42 | Report Abuse

there are people who are so scare of me
they will take all the trouble to give me 10 report abuse to stop me making them feel stupid
very soon all my post will be remove quietly by their 10 ID not the i3 admin .

Posted by apeng > 2017-03-23 09:42 | Report Abuse

Posted by apeng > Mar 23, 2017 09:32 AM | Report Abuse X

wonderful day,

this sort of comment does not make anybody has a wonderful day including yourself


Posted by Wonderful Today > Mar 23, 2017 07:54 AM | Report Abuse

Ricky　Yeo recommended APM, go see how good his stock selection & how good is his return. LOUSY!

Posted by apeng > 2017-03-23 09:43 | Report Abuse

Posted by apeng > Mar 23, 2017 09:29 AM | Report Abuse X

please discuss fact and figures, cautions, positive view or negative view, to help us come to right trading decision. refrain from personal attack , that doesn't prove you are better in whatever way

Posted by apeng > 2017-03-23 09:53 | Report Abuse

I am very free, i am waiting for the yellow flag,
then I just copy and paste and let you has a busy day deleting my post

haahaha.....

Posted by Equityengineer > 2017-03-23 09:53 | Report Abuse

For the investing part of depreciation, it all depends on the type of company. If you are looking at a rapid tech company where assets lose most of the value within the first year, needs to be replaced regularly, and costs a lot to maintain, the accelerated method is the right choice.
If you come across a company where the depreciable life of the assets is extended or the useful life is much too long, watch out.

From the point above we know that it depends on many factors that effects D&A, level of maintenance needed , availability of parts , availability of vendor to support and productivity. Most of the the time the depreciation is calculated at the first phase when investing on the machinery/equipment and never been revised after that .

Posted by Equityengineer > 2017-03-23 09:58 | Report Abuse

I think the vision of company and getting the whole corporation to work towards that objective can overtake all those financial ratios. That is business, how to translate those visions to numbers , yes you can but how many can believe that those numbers is achievable or not. It's creating a perception it's achievable and get them achieve that.

Posted by Ricky Yeo > 2017-03-23 10:26 | Report Abuse

Stock Kingdom

1. Peter Lynch definitely can teach you a lot, but if you look at things at skin deep, the problem is on you, not others. I could have asked you to buy Scientex in 2012 at $2.50 pre-split (now $15), SKPRes at $0.30 in 2013, and you wouldn't have hold it until today because of the prevalent idea of profit taking. And now I wrote about APM and Favco, but you won't have the temperament to buy them. Even if you did, you will only hold them for few months, same goes for CAB.

2. If you don't understand, I would appreciate you ask. If you don't understand something that doesn't mean the universe will make things easier to suit your taste. I have explained things as simple as I can.

Posted by WealthWizard > 2017-03-23 10:26 | Report Abuse

Good comments, Equityengineer, it's the people that manage the company & achieve the business goals.

As investors & outsiders, we can only assess the performance of the company & management based on financial reports & analysis on the financial figures & ratios as well as news in the newspapers.

The management of the company has proved themselves with their past years' records, it become my foundation to judge on their promises to deliver future profits.

Posted by WealthWizard > 2017-03-23 10:27 | Report Abuse

Barring any unforeseen things, I hope I can complete my part 2 by tonight. Thank you.

Posted by Blue Planet > 2017-03-23 10:37 | Report Abuse

This Ricky Yeo very lan si, whenever people disagree with him, he sure fight back like mad dog, thought that he is smartest one in i3?

Posted by Blue Planet > 2017-03-23 10:38 | Report Abuse

Some people never said he is bad & yet want to lan si people & look down at people want to teach people, diu!

Posted by Ezra > 2017-03-23 10:44 | Report Abuse

I don't think Ricky is being lanci. Yes I agree Ricky often can be quite skeptical, but he's definite not arrogant, otherwise he wouldn't offer to teach.

He is just pointing out the facts. I'd say he is closer to Charlie Munger, someone who point out things in a very blunt and critical manner.
Contradictory information is important. It good so that people can activate second level thinking.
If you can't take a little criticism, then you are very blinded by cognitive biases, specifically, confirmation bias.

https://en.wikipedia.org/wiki/List_of_cognitive_biases

Posted by Blue Planet > 2017-03-23 11:10 | Report Abuse

Does the below perfectly described to Ricky Yeo? Ezra?

If you can't take a little criticism, then you are very blinded by cognitive biases, specifically, confirmation bias.

Posted by Flintstones > 2017-03-23 11:13 | Report Abuse

This ricky yeo is more suited to become an educator like Hairy Teo. If you guys notice all his postings are very academic based. In terms of market acumen, I afraid ricky yeo has ZERO track record here on i3! Without track record, dont talk so big la