Posted by 10154899906070843 > 2019-01-18 01:42 | Report Abuse

Most importantly, try to understand the logic behind the fact that all the top quality blue chips always sell at a certain premium. Why?

Posted by 10154899906070843 > 2019-01-18 01:45 | Report Abuse

by part time investor of course I mean having 28-100 other stocks in your counter. If you cant keep track of your stocks and use indicators and charts and short cuts, you deserve everything coming to you. Stock investing is laborious, boring and financially satisfying.

Posted by 10154899906070843 > 2019-01-18 01:54 | Report Abuse

and most of all, if you can find a warren buffett like man to run your company, he can grow from a dying low margin textile business, and diversify SUCCESSFULLY into furniture, insurance, tooling, shoes, clothes, underwear,candy, etc etc etc please tell me. I would love to buy that company in a heartbeat.

Business performance always equal stock price increase.

FYI - Please dont buy QL. AFter 2009, they never diversified or integrated into anything new. They probably dont have any more ideas of how to maximize their limitations. Most likely declining sales and problematic cash flow problems in the next 5-10 years.

You can consider buying it when it is PE5.

Posted by probability > 2019-01-18 02:36 | Report Abuse

August 2006, QL made its debut foreign investment in Eastern Kalimantan, Indonesia. A joint venture of 74.5% (QL): 25.5% (Indonesian partner) was established for the purpose of oil palm plantation project. The project involved developing two parcels of plantation land into oil palm plantations in East Kalimantan, Indonesia, measuring approximately 20,000 hectares. This investment in Indonesia represents QL first regional replication of our business activities. (NOTE THE WORD SUCCESSFUL REPLICATION OF BUSINESS ACTIVITIES OUTSIDE MALAYSIA. GROWTH TRIGGER

.................................

A stock that truly deserves high PE......MYEG.

Posted by 10154899906070843 > 2019-01-18 03:29 | Report Abuse

MYEG? I don't think so. It has many more bombs that it does growth trigger.
1. MSc status company 10 year tax incentive expiry. It will be hit from 0.54% -24% soon
2. gst system impairment 90 million which I had expected the moment they changed government and announced cancellation.
3. New concessions not to favour MYEG due to Zahid.
4. Corruption cases and possible penalties levied.
5. Lack of clarity on profit margins and revenue generation ?figures from Philippines and Bangladesh.
6. If government contracts gone out revised margins on concessions, will MYEG still be a 4 billion dollar company?

Posted by jellyfish > 2019-01-18 06:50 | Report Abuse

talking rubbish just to defend a overvalued stock.

Posted by 3iii > 2019-01-18 07:24 | Report Abuse

What are value traps?


Above all else, we try to avoid value traps.

What are value traps?


A value trap refers to a stock that looks cheap, probably is cheap, and stays inexpensive forever. It never appreciates because nothing really changes -- there‘s no growth or things don‘t get better. For some companies, it is difficult to change. The only way to make money is if they are acquired, which may never happen. Right now there are several companies that meet all of my other criteria, except that I feel they are value traps.

Posted by 3iii > 2019-01-18 07:35 | Report Abuse

Low P/E stocks: Are they trash or are they treasure?

Some Lowest P/E Stocks
LTKM 3.02
KUMPULAN FIMA 4.06
MEASAT GLOBAL 4.54
COASTAL 5.31
AJIYA 5.40
KLCC PROP 5.76
PANTECH 5.87
DXN 6.15
POH KONG 6.22

The above lowest PEs were noted on 25th January 2010.

There are reasons that stocks sink to a discount.

Posted by 3iii > 2019-01-18 07:41 |

Post removed.Why?

Posted by Ricky Yeo > 2019-01-18 07:42 | Report Abuse

http://musingzebra.com/whats-wrong-with-p-e-ratio/

Posted by 3iii > 2019-01-18 07:53 |

Post removed.Why?

Posted by 3iii > 2019-01-18 08:01 | Report Abuse

Interpretation of PE ratio

The PE ratio is meaningless by itself. (MOST IMPORTANT POINT)

Posted by Flintstones > 2019-01-18 08:08 | Report Abuse

Great article. Thanks long numbers guy.

Posted by 3iii > 2019-01-18 08:09 |

Post removed.Why?

Posted by 10154899906070843 > 2019-01-18 08:42 | Report Abuse

Jellyfish, you don't have to buy ql, and I will definitely recommend that you don't. It is overvalued and a bad buy. What I would recommend is you revisit your klse screener outlook by filtering out all stocks with higher PE than 20. Or 15. Or 10. Or 5.

Look to the business value first before making your choice in stock.

Posted by 10154899906070843 > 2019-01-18 09:04 | Report Abuse

À you should concentrate on buying stocks with PE below 5, is sure chun chun win one.

Posted by Joel Chan > 2019-01-18 09:33 | Report Abuse

hi author, great sharing, now i know more about it

Posted by teoct > 2019-01-18 09:45 | Report Abuse

Thank you for sharing, I didn't know there are so many different ways to view PE (PEG and so on). There is no right or wrong and it is the investor own due diligent to adopt the one that suit themselves most. Let's us respectfully agree to disagree.

Have a good weekend ahead, all.

Posted by qqq3 > 2019-01-18 09:46 | Report Abuse

Vitrox

Posted by qqq3 > 2019-01-18 10:03 | Report Abuse

enormous experience and intellectual capacity.

challenge all investment conventions.

beginner mistake...they go KLSE screener for PE 5 and below shares.

Posted by pputeh > 2019-01-18 10:19 | Report Abuse

Gd morning, Philip thank you for the insight into PE. Interesting but difficult to understand with my old rusted brain. Am 76 this year! Will still hold on to my Aeon Cr, a bit of Penta, Inari and recently aquired Top Glove.

Posted by qqq3 > 2019-01-18 11:07 | Report Abuse

puteh not bad

Posted by 3iii > 2019-01-18 11:16 | Report Abuse

>>>>
Low P/E stocks: Are they trash or are they treasure?

Some Lowest P/E Stocks
LTKM 3.02
KUMPULAN FIMA 4.06
MEASAT GLOBAL 4.54
COASTAL 5.31
AJIYA 5.40
KLCC PROP 5.76
PANTECH 5.87
DXN 6.15
POH KONG 6.22

The above lowest PEs were noted on 25th January 2010.

There are reasons that stocks sink to a discount.

<<<<<




LOWEST PE STOCKS IN JANUARY 2010.


LTKM
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.32 0.44 2.67 7.20 4.44 6.11
2018 0.78 1.20 2.00 1.68 46.43 71.43
17.1.2019 1.07 PE 43

KFIMA
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.35 0.94 2.25 17.54 2.00 5.36
2018 1.41 1.76 9.00 14.30 9.86 12.31
17.1.2019 1.56 PE 14

COASTAL
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.58 1.56 2.22 33.25 1.74 4.69
2018 0.76 1.45 0.00 -110.56 -0.69 -1.31
17.1.2019 0.84 PE -

AJIYA
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.22 0.35 0.98 6.94 3.17 5.04
2018 0.50 0.69 1.00 6.35 7.87 10.87
17.1.2019 0.53 PE 12.4

PANTECH
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.25 0.71 1.28 5.44 4.60 13.05
2018 0.42 0.71 1.50 6.33 6.64 11.22
17.1.2019 0.45 PE 7.1

POHKONG
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.29 0.73 1.40 6.99 4.15 10.44
2018 0.44 0.67 1.00 5.70 7.72 11.75
17.1.2019 0.50 PE 8.8

Posted by qqq3 > 2019-01-18 11:19 | Report Abuse

conclusion....mainly trash in Malaysia....

so, don't confuse people by posting what experts says about America/ Wall Street.

Posted by pputeh > 2019-01-18 11:20 | Report Abuse

qqq3.. Thanks for the complement

Posted by 3iii > 2019-01-18 11:24 | Report Abuse

<<<<<
LOWEST PE STOCKS IN JANUARY 2010.


LTKM
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.32 0.44 2.67 7.20 4.44 6.11
2018 0.78 1.20 2.00 1.68 46.43 71.43
17.1.2019 1.07 PE 43
>>>>


Those buying in 2009 would have bought this stock cheap with a high dividend yield.
Though its market price has risen over the years, its latest dividend and earnings were lower than in 2009.

This is also an example where PE should not be used in isolation in valuing a stock. Its PE was a single digit in 2009 and in 2018 it was 46 to 71, due to very miniscule EPS.

Posted by qqq3 > 2019-01-18 11:45 | Report Abuse

low PE stocks started making more money , increasing profits and PE ratings increases...remember the exports rally of small caps....Koon Bee makes a lot of money....

that is a one off with a good story, syndicates....and coming off years of neglect, blue chips not going anywhere and coming off the financial crisis late.....

not everyday is a sunday, but everyone wishes everyday is a sunday.

Posted by qqq3 > 2019-01-18 11:47 | Report Abuse

FLH was played up (then) ....now FLH got increasing profits no PE re ratings....once bitten twice shy.

Posted by 3iii > 2019-01-18 11:56 |

Post removed.Why?

Posted by qqq3 > 2019-01-18 12:06 | Report Abuse

maybe to make money from stock market, it is not as difficult as people think.

What is needed is good business sense ( developed from extensive readings and fact based not opinions) and actually have some shares for the long haul.

what is not needed is complex formulas.

Posted by 3iii > 2019-01-18 12:23 |

Post removed.Why?

Posted by 3iii > 2019-01-18 12:25 | Report Abuse

Even Benjamin Graham emphasized growth in his selection of undervalued stocks. In his criteria, the earnings must have grown 7% per year over the last 10 years.

If you have such a company available at low PE, you probably have margin of safety and a bargain.

Also don't be misled by low PE as single digit PEs. Often a company may trade at a certain PE range. Just make sure that you are buying at its lower PE range.

Posted by 3iii > 2019-01-18 12:30 | Report Abuse

POHKONG
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.29 0.73 1.40 6.99 4.15 10.44
2018 0.44 0.67 1.00 5.70 7.72 11.75
17.1.2019 0.50 PE 8.8



Those holding this company for the long term probably enjoyed a bit of dividends which were nothing to shout about.


Value of an asset is the cash that it can generate and return to the shareholders over its lifetime.

With Dividend of 1 to 1.4 sen per year, well, it is not surprising that its share price is at this level.

Moreover, what happened to all the retained earnings? So much earnings retained and nothing much to show in the end in terms of incremental earnings.

You do not need high power maths, just logical business sense.

Posted by 3iii > 2019-01-18 12:33 |

Post removed.Why?

Posted by 3iii > 2019-01-18 12:40 | Report Abuse

COASTAL
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.58 1.56 2.22 33.25 1.74 4.69
2018 0.76 1.45 0.00 -110.56 -0.69 -1.31
17.1.2019 0.84 PE -



Valuable lessons can be absorbed from Coastal.

For a few years, it could do no wrong.

For recent years, it could do nothing right.

Its business is linked to the O&G sector which has seen many companies collapsed with the fall of the crude oil price.

During the good years, it was able to attract a lot of ship building business (OSV) but this collapsed with the downturn in this sector.

It got into the oil rig business just at the start of the downturn. This is a very capital intensive business incurring borrowings. Luckily it managed to sell one of the oil rig. The other is leased to a Brazilian company and there is earnings visibility for the next few years.

Posted by 3iii > 2019-01-18 12:44 | Report Abuse

KFIMA
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.35 0.94 2.25 17.54 2.00 5.36
2018 1.41 1.76 9.00 14.30 9.86 12.31
17.1.2019 1.56 PE 14



Its EPS in 2009 was higher than that of 2018 of 14.30. Even then, it is trading at PE of 14 today!

Granted its DPO is higher in 2018 than in 2009.

Do you think owning this stock for the long term will make you fabulously rich?

Posted by qqq3 > 2019-01-18 12:46 | Report Abuse

think long term, harvest short term

that is me.....every time I think long term, my share usually go up almost immediately , within days.

every time I think short term, I lose money....shit.....

now, I smarter, think long term, delay my selling...I think I will do better since market not so hot......

Posted by 3iii > 2019-01-18 12:59 | Report Abuse

Return on Retained Capital (Return on Retained Earnings), RORC is not perfect.

Be careful that the per share earnings figures you employ for this test are not aberrations, but rather are indicative of the company's earning power.

The advantage to this test is that it gives you, the investor, a fast method of determining

- whether it is a durable-competitive-advantage business that lets its management utilize retained earnings to increase shareholders' riches or

- whether it's a price-competitive business that is stuck allocating its retained earnings to maintain its current business.





Summary

Durable-competitive-advantage companies wield a one-two punch when it comes to allocating resources. They can better take advantage of retained earnings than price-competitive businesses, which over the long term will make their shareholders a lot richer than those who own stock in price-competitive businesses.

Price-competitive businesses are able to retain earnings, but because of the high costs of maintaining their businesses, they are unable to utilize them in a manner that will cause a significant increase in future earnings. This means that their stock prices end up doing little or nothing.

Posted by stockraider > 2019-01-18 15:11 | Report Abuse

The beauty of Insas....!!

1.CASH IS THE KING- IF U BELIEVE....THEN U MUST BELIEVE IN INSAS HATHWAY A TRULY WARREN BUFFET STOCK LOH...!!

2. SUP SUP SUI INSAS GENERATE SUSTAINABLE PE ABOUT 6X BEATING AEONCR WITH PE 12X BY A MILE.

3, INSAS PAYS 2 SEN DIV...THIS DIV YIELD EVEN BEAT NESTLE N QL DIV YIELD BY A MILE LOH...!! U NEED TO UNDERSTAND WHY NESTLE & QL CANNOT EVEN PAY DECENT DIV COMPARE TO INSAS LEH ?? THIS IS BCOS THESE SO CALLED GROWTH STOCKS WITH PE ABOVE 50, CANNOT GENERATE GOOD CASHFLOW, THEIR PROFITS ARE STUCKED IN EQUIPMENT, DEBTORS AND INVENTORY WITH SUBJECT TO IMPAIRMENT, WHEREAS INSAS MAKE ITS MONEY IN CASH N JUST SUP SUP SUI LOH.....!!

Posted by stockraider > 2019-01-18 15:13 | Report Abuse

calvintaneng Good news for insas

Bank interest rates going up is good for Cash Rich Insas

It will be bad for companies with high borrowings.
18/01/2019 13:30

Posted by stockraider > 2019-01-18 15:45 | Report Abuse

Mr Long,

Your wife need to learn from ahfah a smart vegetable seller from pudu mkt loh...!!

Every morning ahfah will buy all sort of vegetable of diff varieties from central wholesale market and sale at pudu mkt at a profit loh...!!

she told raider...never never buy...1 type of vegetable loh...she say she don want to be like ahbeng loh....a specialist carrot seller...who r tie down his fate to the single vegetable carrots loh...!!

In addition ahbeng cannot capitalise on seasonal movement n demand of vegetables like chinese new yr u got big demand of lettuce and cabbage mah..!!

in addition ahfah says....when price of vegetable fall far below production cost of farmers, she can make a killing provided she is willing & worthwhile to store n warehouse it, she usually buy tonnes of it n store it in cold storage loh...!!

she quoted few months ago when tomato fell to rm 0.20 per kg she bought 5 tonnes of tomato bcos she knew the farmer cost of production is rm 0.50 per kg loh....!!
Ahfah manage to clear all her tomatoes 4 wks later at an average price of rm 1.30 loh....!!

The reason why Mr Long see his wife weaknesses bcos simply buy thing without profit in mind n bcos his wife is not business minded like ahfah loh..!!

Ahfah will never chase overvalue vegetable loh...recent kangkung price shoot up to rm 4.00 kg....so ahfah did not chase kangkung...she advice her customer to buy substitute like" fan she mew" which is a good substitute to kangkung when fried with belancan and cost only rm 1.60 per kg mah..!!

The lesson here is that U need to be smart when employ Graham margin of safety investment in all to take advantage of Mr Market mah...!!

Hi all,

I realized more and more that there is a growing misconception of of PRIME PRINCPLES in investing, aka:

LOW PE STOCKS = UNDERVALUED,HIGH MARGIN OF SAFETY, SAFE BUY

HIGH PE STOCKS = OVERVALUED, LOW MARGIN OF SAFETY, RISKY BUY

This as a basic principle in investing is something that all fundamental and technical analysts put at the back of their mind.

HOWEVER:

Let me try to explain the BUSINESS SENSE behind the usage of PE.

PE, or price to earnings RATIO , is simply what MADAM MARKET (here I put the irrationality that is my WIFE) is willing to pay you for your business. And as you know all women, they would buy 10 things that they dont need just because it is CHEAP in comparison to normal supermaket prices, rather than buy something EXPENSIVE that they really need.

Posted by 10154899906070843 > 2019-01-18 16:23 | Report Abuse

I'm sorry I don't want to be vegetable trader like you. I prefer long term wealth creation. Your method only works until it doesn't.

Posted by stockraider > 2019-01-18 16:28 | Report Abuse

The example of ahfah illustrate that if u have business sense if u use margin of safety investment & business like & by taking advantage of Mr market can work & make monies too.

Ur example of your wife do not reflect the right situation bcos all her purchase do not base on business sense and business sense profit minded approach mah....!!

Posted by 10154899906070843 > Jan 18, 2019 04:23 PM | Report Abuse

I'm sorry I don't want to be vegetable trader like you. I prefer long term wealth creation. Your method only works until it doesn't.

Posted by qqq3 > 2019-01-18 16:34 | Report Abuse

raider is not vege seller...

raider is stock market novice trying to make from random events....


one day....raider will graduate to calvin level with 150 under water stocks....my prediction.....

Posted by 3iii > 2019-01-18 16:47 | Report Abuse

http://www.investlah.com/forum/index.php/topic,73536.msg1549457.html#msg1549457

5 stocks recommended in October 2015:

PBB
Topglove
Nestle
LPI
DLady






What do you think of these companies?



PBB
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 6.68 10.79 38.89 69.63 9.59 15.50
2018 20.62 26.16 66.00 143.00 14.42 18.29
17.1.2019 24.68 PE 17.45

Topglove
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.45 1.27 2.75 7.12 6.32 17.84
2018 3.93 6.36 8.50 17.04 23.06 37.32
17.1.2019 4.73 PE 27.76

NESTLE
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 27.00 35.68 130.00 150.02 18.00 23.78
2018 100.50 163.00 275.00 280.00 35.89 58.21
17.1.2019 147.40 PE 53.52

LPI
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 3.32 5.48 22.49 30.29 10.96 18.09
2018 15.10 17.50 63.50 77.00 19.61 22.73
17.1.2019 16.18 PE 20.54

DLADY
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 8.85 13.00 65.63 94.38 9.38 13.77
2018 57.38 76.98 200.00 190.00 30.20 40.52
17.1.2019 60.80 PE 32

Posted by 3iii > 2019-01-18 16:49 | Report Abuse

http://www.investlah.com/forum/index.php/topic,73536.msg1549457.html#msg1549457

5 stocks recommended in October 2015:

PBB
Topglove
Nestle
LPI
DLady






What do you think of these companies?



PBB
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 6.68 10.79 38.89 69.63 9.59 15.50
2018 20.62 26.16 66.00 143.00 14.42 18.29
17.1.2019 24.68 PE 17.45

Topglove
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.45 1.27 2.75 7.12 6.32 17.84
2018 3.93 6.36 8.50 17.04 23.06 37.32
17.1.2019 4.73 PE 27.76

NESTLE
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 27.00 35.68 130.00 150.02 18.00 23.78
2018 100.50 163.00 275.00 280.00 35.89 58.21
17.1.2019 147.40 PE 53.52

LPI
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 3.32 5.48 22.49 30.29 10.96 18.09
2018 15.10 17.50 63.50 77.00 19.61 22.73
17.1.2019 16.18 PE 20.54

DLADY
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 8.85 13.00 65.63 94.38 9.38 13.77
2018 57.38 76.98 200.00 190.00 30.20 40.52
17.1.2019 60.80 PE 32

Posted by stockraider > 2019-01-18 16:52 | Report Abuse

Raider already says this type of stocks are the old leaders the growth already factor in the share price....going fwd this type of stock cannot even beat insas return loh...!!

Do not chase old leaders loh...!!

Use margin of safety investment n take advantage of Mr Market...a good example is insas hathway loh...!!

What do you think of these companies?



PBB
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 6.68 10.79 38.89 69.63 9.59 15.50
2018 20.62 26.16 66.00 143.00 14.42 18.29
17.1.2019 24.68 PE 17.45

Topglove
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 0.45 1.27 2.75 7.12 6.32 17.84
2018 3.93 6.36 8.50 17.04 23.06 37.32
17.1.2019 4.73 PE 27.76

NESTLE
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 27.00 35.68 130.00 150.02 18.00 23.78
2018 100.50 163.00 275.00 280.00 35.89 58.21
17.1.2019 147.40 PE 53.52

LPI
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 3.32 5.48 22.49 30.29 10.96 18.09
2018 15.10 17.50 63.50 77.00 19.61 22.73
17.1.2019 16.18 PE 20.54

DLADY
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 8.85 13.00 65.63 94.38 9.38 13.77
2018 57.38 76.98 200.00 190.00 30.20 40.52
17.1.2019 60.80 PE 32

Posted by 3iii > 2019-01-18 16:57 | Report Abuse

NESTLE
YEAR adj LPr adj HPr adj DPS adj EPS LPE HPE
2009 27.00 35.68 130.00 150.02 18.00 23.78
2018 100.50 163.00 275.00 280.00 35.89 58.21
17.1.2019 147.40 PE 53.52



This stock is trading at high PE.

Its usual PE was around 25 to 30.

It has grown its EPS from 150 to 280 over the last 10 years.

Is it possible that it may deliver 600 sen of EPS in 2028?

Assuming a PE then of 28, its share price in 2028 maybe 168 per share.

Also, over the next 10 years, you probably would also have collected another 10 years of dividends of about 44. {[(280 sen + 600 sen)/2] x 10 years} = 440 sen x 10 = RM 44.


What is the downside? Maybe its share price can go down to 120 this year. What is its upside? This year or in 10 years time?

Posted by qqq3 > 2019-01-18 17:02 | Report Abuse

the point is not whether these are new or old stocks....

the point is to find a method to participate in next batch of similar stocks with similar returns for next 3 years.....none of them are asset plays...all of them are good businesses.....

Posted by 3iii > 2019-01-18 17:13 |

Post removed.Why?