hi kc, thanks for your sharing. readers would benefit more by reading your articles, rather than those hot tips.
i have been following u for the last 3 years. i have a small request. could you do a write up about focus lumber? because it is in your Stock Pick 2017 and we would like to know more about the fundamentals, ROIC etc. thanks again.
hi kc, thanks for your sharing. readers would benefit more by reading your articles, rather than those hot tips.
i have been following u for the last 3 years. i have a small request. could you do a write up about focus lumber? because it is in your Stock Pick 2017 and we would like to know more about the fundamentals, ROIC etc. thanks again.
1. Buy good quality growth stocks with durable competitive business advantage 2. High ROE of > 15% 3. High quality earnings that translate into large cash flow from operations. 4. Minimal cap expenditure, preferably < 25% of cash flow from operation, that is, high Free Cash Flow 5. Since company is growing its revenues, and earnings yearly, its FCF too grows as well 6. These companies generally has little debt, large cash flows and can play dividends. 7. Dividend payout ratio preferably between 30% to 70%, though companies like Nestle and DLady pay out almost 100% of earnings as dividends. Buying these companies is the equivalent of buying an equity bond of Warren Buffett. Your return = Dividend Yield + Growth in Dividends.
Bull market time dividend stock is the least favorited and cannot go up Bear market time dividend stock also need to drop Talk about value trap by the means of dividend
Posted by walau2u > May 6, 2017 05:46 PM | Report Abuse Kc, how about your prkcorp? Tq
What about Prkcorp?
Haven't you learned a good lesson on a speculative endeavor on risk arbitrage from the article I wrote on it about a long four years ago. It was free too.
Posted by greatnz > May 6, 2017 05:54 PM | Report Abuse hi kc, thanks for your sharing. readers would benefit more by reading your articles, rather than those hot tips. i have been following u for the last 3 years. i have a small request. could you do a write up about focus lumber? because it is in your Stock Pick 2017 and we would like to know more about the fundamentals, ROIC etc. thanks again. have a good weekend.
Glad that you found value in my articles. They are free too here.
Focus Lumber is a magic formula stock, high ROIC and low EY. it is also a good dividend yield stock and good cash flows, and with a clean balance sheet.
It is hence a very safe stock to invest for long-term. It is unlikely to go wrong in your investment.
However, it may not be exciting stock which does not have that kind of fantastic growth prospect due to its business nature.
Posted by PlsGiveBonus > May 6, 2017 07:10 PM | Report Abuse Bull market time dividend stock is the least favorited and cannot go up Bear market time dividend stock also need to drop Talk about value trap by the means of dividend
Haven't I shown you that the share prices of those dividends stocks in this article that they have gone up in the bad market in 2016, and that they continue to go up during the bulls in the first three months of this year?
Posted by 3iii > May 6, 2017 07:25 PM | Report Abuse >>>Posted by PlsGiveBonus > May 6, 2017 07:21 PM | Report Abuse If anyone is interested in dividend of 5-7% better put in EPF which is sure gain and no way can go down and loss money Asb also a good alternative.<<<
I think you failed to understand KC's article. :-)
3iii, you are right. i also mentioned in the article this,
“In value investing, either you get it, or you don’t”
Posted by musangfoxking > May 6, 2017 07:39 PM | Report Abuse aiyoh, in bull market we not interested whether the company is good or not!!! we just want to hit n run!!!!!!!
Good on you and best of luck, real luck. You need it. Don’t go out without it!
it is only in prolonged bear markets, that ratios, and formulas and bankruptcy tests based on audited accounts are invented and plays a significant role...
for now, people are better off reading the whole Annual Report, news and valuations of X factors.
===================
kcchongnz > May 7, 2017 01:38 AM | Report Abuse
stockmanmy translated...there is a time for every strategy. This is X factor time
Most banking stock and tech stock is having most powerful bull run in the century which never been seen before, none of them seem to follow value investing rule :))
PlsGiveBonus > May 7, 2017 02:23 PM | Report Abuse
Most banking stock and tech stock is having most powerful bull run in the century which never been seen before, none of them seem to follow value investing rule :))
Most powerful bull run stock in Dow Jone Tech stock Apple Google Amd Nvda Fb... Banking Jpm Wfc Bac C ... Crypto currency : Bitcoin, ethereum, ripple,...
Wall run but fat also invest in Bitcoin Wall run but fat is a flipper :DD While he teach you to buy value stock which is rigged to look good, rigged by his team. To trap the poor that believe in value, while he get richer and richer selling it.
Who is rich enough to invest in it? The world richest man Who is the world richest man? it is hard to not believe he is not into it while most of his peer who is richest too also involved into it. Well it is surprising he also involved into gold flipping very long ago. :DD
Posted by stockmanmy > May 7, 2017 08:53 PM | Report Abuse valuations of audited accounts can be taught in universities and become popular memes. but it is valuations of X factors that are priceless.
Valuation of audited accounts?
What is that,Mr Accountant?????
Got teach "valuation of audited accounts" in university kah?
Valuations of X factors? You have written thousand times. What the hell is that? X factors? X factors? X factors priceless?
Posted by stockmanmy > May 7, 2017 10:29 PM | Report Abuse Billionaire Mark Cuban bought a lot of bitcoins at the low. He didn't need audited accounts for that.
Buying bitcoins need audited account one ah? What kind of account is required, Mr Accountant?
Hard to resist the "social proof". money game come into my mind.
During the Berkshire Hathaway’s annual shareholders’ meeting, a value investor from China asked Buffett and his right-hand man Charlie Munger for advice on how to spread the value investing philosophy in a market system where so many are speculating.
“There’s always some speculations, always some value investors in the market,” Buffett said.
The problem arises when people start to see others benefitting from playing the market.
“When speculation gets rampant and when you’re getting what I guess Charlie [Munger] would call ‘social proof’ that it’s worked recently, people can get very excited about speculating in markets. And, we will have it from time-to-time in the market,” Buffett said, adding, “There’s nothing more agonizing than to see your neighbor, who you think has an IQ 30 points below you, getting richer than you are by buying stocks, whether it’s internet stocks or whatever. And people succumb to it. They’ll succumb to it in this economy and elsewhere.”
tip for you...don't buy any thing that makes you nervous. No point one even if it skyrockets after you have bought. Buy whatever makes you calm. but X factor will continue to be a very important of share price for the rest of 2017.
keke > May 7, 2017 11:28 PM | Report Abuse
Whenever temptation is getting stonger and stronger, I just remind myself that there are certain type of money out there which are not for me to earn.
Total crypto currency market cap is officially now 52.558 bn USD, or over 200 bn myr worth of market cap, it is more worthy than all klci components plc combined. :DD
It is one of the best investment you can find in this decade practically you do not spend money to get it, and it compound into a lot of wealth. Take it for granted work every time The last time piece of land is very abundant wealth, a lot of people take it for grant with no money down, now they enjoy the wealth from the piece of free land.
it is the dividend that made me rich as today. thank kc . i invested in reit for 9 years , with dividend and capital gain , and bplant after it dip to 1.25...i collected huge return from them. no one will believed.
Posted by Yippy68 > Jun 13, 2017 06:57 AM | Report Abus it is the dividend that made me rich as today. thank kc . i invested in reit for 9 years , with dividend and capital gain , and bplant after it dip to 1.25...i collected huge return from them. no one will believed.
Congrats Yippy.
That is partly what business sense is about.
Some others think that they have this, but they can't even articulate what it is. it is merely a business nonsense.
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Posted by Surewin123 > 2017-05-06 16:39 | Report Abuse
but ah, im small fry trader only. my family waits for me to pay bills, how? dividend need to wait so long and i can't grow my capital =(