Posted by qqq3 > 2018-03-19 22:50 | Report Abuse

kc...half the market up and down in recent months.....nothing special here.

But Sendai, cash generated from operations 2017 $ 117 million.....for a company this size, that is impressive....Investing in the future property plant and equipment $ 97 million......

I don't think KYY and super investors worry a bit......

Posted by qqq3 > 2018-03-19 22:53 | Report Abuse

When the owner has 70% equity interest, minority shareholders are in the same boat as the owner.

Posted by qqq3 > 2018-03-19 23:12 | Report Abuse

its just business sense that being in same boat as the owner is a good place for minority shareholders.

Posted by calvintaneng > 2018-03-19 23:27 |

Post removed.Why?

Posted by veln82k6 > 2018-03-19 23:30 | Report Abuse

Kc all small cap down. Just the matter who loss more this year and which what shares recover fast in future.

Posted by qqq3 > 2018-03-19 23:34 | Report Abuse

calvin...that is a standard sentence in all good accounts, it means, nothing unusual here per the auditors

Posted by newbie911 > 2018-03-19 23:36 | Report Abuse

Run,aft kc ask sell, kyy may kena margin call?

Posted by hollandking > 2018-03-19 23:44 | Report Abuse

whatever, i would advise to exercise caution, if one really interested in sendai. Relook back at what calvin n kcchongz found

Posted by arv18 > 2018-03-20 00:10 | Report Abuse

Um KC, do you really want to go down this road?

Lets take a look at some of your calls

1) Prolexus - Down from ~2.60 to 73 sen today (nice steady downtrend for 2 years)

2) Latitude tree - 8.00 to 3.69 (2 Year downtrend)

3) ECS ICT - 1.78 to 1.14 (2 year downtrend)

4) BIMB-wa - 65 sen to 29 sen

Kfima, Plenitude

On and on it goes...

Posted by arv18 > 2018-03-20 00:13 | Report Abuse

The market is down overall. So yes of course, it isn't surprising to see Sendai down.

It should be quite obvious to you. Its nothing to do with fundamentals,

It has everything to do with sentiment.

Have a pleasant weekend.

Posted by kcchongnz > 2018-03-20 00:49 | Report Abuse

Posted by arv18 > Mar 20, 2018 12:10 AM | Report Abuse
Um KC, do you really want to go down this road?
Lets take a look at some of your calls
1) Prolexus - Down from ~2.60 to 73 sen today (nice steady downtrend for 2 years)
2) Latitude tree - 8.00 to 3.69 (2 Year downtrend)
3) ECS ICT - 1.78 to 1.14 (2 year downtrend)
4) BIMB-wa - 65 sen to 29 sen
Kfima, Plenitude
On and on it goes...


A reader with a little bit of intelligence would understand this article is about how to read and interpret financial statements, in particular he awareness of cash flow, and not to be fooled by accounting earnings.

I do share a lot of analysis in i3investors, scores if not hundreds of stocks, but purely sharing my analysis, and valuations. I have never made any "calls" to buy any stock.

Please lah, if you wish to comment, you are welcomed, but have some sense and contribute positively.

Posted by Koon Bee > 2018-03-20 01:25 | Report Abuse

Again kc, you low life personal attack on uncle Kyy again...u knew he is 2nd largest in Sendai..bad karma, you will have your day very soon

Posted by happy888 > 2018-03-20 06:55 | Report Abuse

Kcchong, to be fair, even petronm and HY both nearly loss half of their marlet capital in this market. U want to say petronm is having bad FCF too? Net cash with debt free leh with good divi.

Posted by happy888 > 2018-03-20 06:59 | Report Abuse

I do not have sendai to be exact but to personally attack same counter over and over again is uncalled for lah.

Not that i side with KYY. He also no brain one lah go and assault masteel non stop when there are four debar major players annjoo, lionind and ssteel.

Personal attack no good lah

Posted by Yu_and_Mee > 2018-03-20 07:13 | Report Abuse

goreng stocks are KYY related stocks. See the top read posts, HY, Sendai, Jaks.

Posted by newbie911 > 2018-03-20 07:15 | Report Abuse

Why superinvestor pick so bad? Is he really super investor?

Posted by Koon Bee > 2018-03-20 07:20 | Report Abuse

KC, why dont write to attack uncle Kyy when sendai at 1.40, HYC at above 18 and Jaks above 1.80? Why you so chicken and only came out to shout when overall market drop ?

Posted by Koon Bee > 2018-03-20 07:21 | Report Abuse

If your intention is noble, you should came out to warn when stock at peak...why only came out when drop?

Posted by Cnlim > 2018-03-20 07:40 | Report Abuse

When market is down almost all stocks down whether good bad n goreng stock cas sentiment no good

Posted by Bruce88 > 2018-03-20 09:18 | Report Abuse

KC, why dont write to attack uncle Kyy when sendai at 1.40, HYC at above 18 and Jaks above 1.80? Why you so chicken and only came out to shout when overall market drop ?
20/03/2018 07:20


Agree with you.

Posted by Tom > 2018-03-20 09:57 | Report Abuse

像kyy，“帮凶”otb，和他们同伙的vip那样的manipulators最好是得到报应

Posted by Zhuge_Liang > 2018-03-20 10:00 |

Post removed.Why?

Posted by Ooi Teik Bee > 2018-03-20 10:02 |

Post removed.Why?

Posted by Zhuge_Liang > 2018-03-20 10:06 |

Post removed.Why?

Posted by 3iii > 2018-03-20 10:17 | Report Abuse

KC

Thanks for the very good analysis of the accounting in Sendai.

In my book, Sendai is not a GREAT company.

In fact, it is in a gruesome business.

To those who invested into Sendai using business sense, that would be misleading.

Sadly, those who are invested in this company faces a bleak many years ahead.

For those who bought into Sendai at high prices, be prepared to be trapped in this stock for a long time or only get out with losses.

Posted by Tom > 2018-03-20 10:19 | Report Abuse

骗子fake id，没有人说sendai，我们说你是manipulator

Posted by Zhuge_Liang > Mar 20, 2018 10:00 AM | Report Abuse

Everyday also tell lies here.
We never recommend Sendai.

Posted by 3iii > 2018-03-20 10:20 | Report Abuse

KC posted on the accounting of Sendai and highlighted many points in the financial statements. Thanks, they were most interesting and revealing.

I believe you stated the facts and the reasons fairly.

For those disagreeable with this article, please challenge KC on the points he raised, rather than insinuating (true or otherwise) on other issues related or unrelated.

Thks.

Posted by Tom > 2018-03-20 10:21 | Report Abuse

我几时说你介绍sendai，我说kyy，otb，和他们的同伙是manipulators

Posted by Ooi Teik Bee > Mar 20, 2018 10:02 AM | Report Abuse

Fxxx you liar xxx.
When I recommend Sendai in I3.
You reserve the curse to be a bankrupt.

Thank you.
Ooi

Posted by tah16600 > 2018-03-20 10:22 | Report Abuse

If U follow super investor to buy stock base on BS, u likely become pauper sooner or later if U do not know how to cut loss like CPTEH. If U follow KCChong, u r safe n make money in long term.

Posted by 3iii > 2018-03-20 10:23 |

Post removed.Why?

Posted by 3iii > 2018-03-20 10:26 | Report Abuse

>>>>
Zhuge_Liang Posted by Tom > Mar 20, 2018 09:57 AM | Report Abuse

像kyy，“帮凶”otb，和他们同伙的vip那样的manipulators最好是得到报应

Liar Tom will be punished until bankrupt. It is a curse here.
Liar reserved to be punished.
Everyday also tell lies here.
We never recommend Sendai.
20/03/2018 10:00

Ooi Teik Bee Fxxx you liar Tom.
When I recommend Sendai in I3.
You reserve the curse to be a bankrupt.

Thank you.
Ooi
20/03/2018 10:02

Zhuge_Liang Liar Tom will be punished.
得到报应, just a matter of time only.
20/03/2018 10:06<<<<





Are Zhuge_Liang and otb associates?

Posted by Tom > 2018-03-20 10:28 | Report Abuse

得到报应的人是你，otb，你用fake id替你说话也没有用....看看hy就知道了，自己做错事一直不敢承认
我再重复....你应该是和kyy聚在一起太久了，整天学他的歪理学到头脑坏掉了

Posted by cheated > 2018-03-20 10:32 | Report Abuse

kc a cheat. He just praised Hengyuan very good at RM 9+ last week. What happen to HRC today?

Posted by tah16600 > 2018-03-20 10:51 | Report Abuse

I read a lot of articles written by KC Chong, all r very good articles, educate not only newbies but also oldbies correct method of investment.

Posted by Ooi Teik Bee > 2018-03-20 11:47 |

Post removed.Why?

Posted by John_Lee > 2018-03-20 11:55 | Report Abuse

calvintaneng For Sendai latest quarter report

There is a very telling phrase

"The auditors’ report on the financial statements for the year ended 31 December 2016 was not
qualified."

---------- ---------- ----------

Calvintaneng, FYI. Unqualified auditors' report is a positive report

Posted by williaml > 2018-03-20 12:08 | Report Abuse

For those who comment on share price, market sentiment, personal attack and etc. You are missing the point here.

Like KC point up, when company do not have cash, it becomes insolvent. As easy as that. Unless it can raise money, get loan and have capital injection from investors. It's just not sustainable.

Investing based on earning, PE ratio and "business sense" only are not enough (whoever tell you so is not painting the whole picture). And throw in margin finance, you have a recipe for disaster.

Posted by John_Lee > 2018-03-20 12:14 | Report Abuse

Kcchongnz,

This is a good article. I agree that Sendai is not the best company to invest in. The business model used by their management is also probably not the most ideal.

But to be fair to Sendai, they are in an industry and geographical area where their current balance sheet status is the norm. Slow payments from customers is a norm. But as long as they are collectible, the company will continue to make profit. Like you said, income statement and cash flow in the long term are the same. Besides, those who choose to do business there also take into account that the margin is a bit higher to factor in business risks there.

Sendai is in a business where cash is needed to roll the business. Customers slow in payment, suppliers also get paid late. But the payables are usually not an issue because suppliers to the industry also understand the industry and had already expected that payments will be slow. They also mark up their margins to factor in the risk.

Cash tied up in inventory in this business is acceptable. They are not a trading company that stocks up with the hope to resell at a profit. Their inventories are project related and are bought in accordance to project requirements.

Investors should only invest in this counter if they comfortable with the company's strategy of doing business in an environment and location where many other companies choose not to venture into.

Posted by 360Capitalist > 2018-03-20 12:14 | Report Abuse

Good analysis... avoid those companies involve in middle eastern countries' projects. They are doing charity works there. At the end of the day, they will face great difficulties to collect back the money.

Posted by stockraider > 2018-03-20 12:15 | Report Abuse

To be fair to KC, in my opinion sendai is a lousy co promoted by kyy loh, same thing as jaks which is louyah too loh...!!.

The only negative point i disagree is that kc bad mouthed margin financing, which i think should be neutral loh...!!

Posted by Halite > 2018-03-20 12:39 | Report Abuse

Those who call for sailang and mf are my enemies
I do want to judge your intention is good or bad, right or wrong
But I can confidently tell you that you are doing more harm than good to the public here.

Posted by PlsGiveBonus > 2018-03-20 12:45 | Report Abuse

I already made a fortune while enjoying reading fighting among greedy human being.

Posted by joekit > 2018-03-20 12:50 | Report Abuse

sendai is a goreng stock...apa mau cakap banyak? hahaha

Posted by PlsGiveBonus > 2018-03-20 13:30 | Report Abuse

Just having lunch with the top ceo guy who work in top insurance company. He is very fond of my wealth and would like me to teach him how to do so.
;)

Posted by joekit > 2018-03-20 13:48 | Report Abuse

err...afternoon dream...hahaha

Posted by 3iii > 2018-03-20 15:48 | Report Abuse

Business sense approach


What has not been shared is how is this done?

Perhaps, you know the particular industry and is well verse with the business in total.

The prove in your success is using the approach to find the winners and avoid the losers.

Buffett has good business sense. His stock picks in general have more winners than losers. He must be doing something right.

Buffett shares his approach. Buffett and Munger use these 4 tenets in their stock selection:

(1) A business he understands
(2) A business with durable competitve advantage
(3) A management with integrity and finally,
(4) A price that makes sense.

In this respect, Buffett and Munger have a lot of business sense.

Posted by qqq3 > 2018-03-20 16:20 | Report Abuse

kc

and I don't think you can make much money when every thing are rosy and cleared, That is not how it works.

maximum money is make when you are willing to take some risks and things work out in your favor.......

here, I refer to the $ 1 billion in the Balance Sheet under the heading Amounts due by customers..( the figure have not changed in 2017)..if there is no more amounts due by customers, its perhaps because they are no more customers.

Posted by qqq3 > 2018-03-20 16:42 | Report Abuse

why is professor kc so kiasu that operating surplus must show up in cash? that balance sheet to balance sheet must see increasing cash ?

Posted by qqq3 > 2018-03-20 16:43 | Report Abuse

Posted by qqq3 > Mar 20, 2018 04:38 PM | Report Abuse X

Sendai made a profit of RM86.5m for the financial year ended 31st December 2017. First, I would like to see its cash increases, or total borrowings decrease. In Sendai’s case, as it is heavily in debts, I would expect its net borrowings, i.e. total debts less cash, decreased with the profit. However, the latest balance sheet does not show this is the case. Instead, the cash in the balance sheet decreased by M110m from RM387m to RM277m, and net borrowings increased by another RM90m. That has not taken into consideration of some cash received of about RM10m from private placement exercise during the same period.

Where has the “profit”
===================



where did the cash go?

the cash went into the business.......(working capital and fixed assets ).....what else you think?

Posted by hollandking > 2018-03-20 16:45 | Report Abuse

qqq3, don't talk cock lah, i challenge u to sialang sendai, dare or not? Unless u r oredi trapped???