1. ROE is a powerful inward looking tools for looking at the quality of investment, but it does not help u to determine whether it is good buy even the roe is high mah...!!
2. Good buy is determine by the reasonable PE or and with earnings growth mah....!!
A good example Nestle has a superb ROE of more than 100% but the company cannot n unable to find good investment to support high ROE returns as a result it pays high dividend loh...!! But bcos of its share price of exceed Rm 140.00 investing in it give u an earning yield of PE 50x or less than 2.6% pa, but yes there is some growth about 10% pa...including this growth will give u less than 5% pa loh..!! Unless u r a fixed deposits holder looking to punt a bit then Nestle may consider investable loh....!!
On the other hand insas The ROE is only 4% pa but bcos its high shareholder fund of Rm 2.54, it generate an eps of rm 0.10, giving an earning yield of 14% pa or pe 6.5x loh basing on share price rm 0.72 loh...!! This insas is a credible long term margin of safety investment loh..!
I am also tempted to buy PetronM..rather than Hengyuan. What makes me hesitate is PetronM's coming quarterly earnings may be poor due to poor crack spread in Oct-Dec'18 period and potential stock holding loss as oil price declined quite sharply during Oct-Dec'18 period.
U need to know Petron has not spend on any plant upgrade yet mah...once they spend on capex their financial will look bad loh...!!
Unless they decide to close down their refinery, then they can avoid the poor balance sheet loh...!!
Posted by value88 > Jan 22, 2019 11:41 AM | Report Abuse
I am also tempted to buy PetronM..rather than Hengyuan. What makes me hesitate is PetronM's coming quarterly earnings may be poor due to poor crack spread in Oct-Dec'18 period and potential stock holding loss as oil price declined quite sharply during Oct-Dec'18 period.
value88 383 posts Posted by value88 > Jan 22, 2019 11:43 AM | Report Abuse
I am thinking to buy after PetronM reports its Oct-Dec'18 quarterly result by end Feb'19. I probably can get cheaper price then.
value88 383 posts Posted by value88 > Jan 22, 2019 11:43 AM | Report Abuse
Having said that, PetronM is indeed selling at low valuation and attractive at current price level.
$12? sure or not? This thing will eventually serve as production center and all the products send to China, subject to transfer pricing.....remember RAPIDS.
This thing is here not to make money for u minorities but to serve China.....
1. Crack is the lowest, it is best to buy bcos share price undemanding mah....it will usually normalise bcos it is cyclical mah...!!
2. margin of safety preposition : Come up a equivalent Plant like hengyuan, it will cost at least Rm 10 billion or more mah....!!
Posted by 3iii > Jan 22, 2019 05:42 PM | Report Abuse
What I gather from reading icon8888's post.
The crack spread margin is at its lowest. Crack spread margin is cyclical. Therefore these stocks are at their cyclical lows. Therefore, got margin of safety.
You broke my heart when you talk about warrant (unimech-wa?), you nearly killed me when you talk about priceworth....(and what’s wrong with you buying jaks-wa, no offence)
I am pleased you come back to the right path. Great move!
Munger once said his investing strategy is akin to "sit on your ass" investing. Indeed one had to do the legworks and have the right temperatement for this strategy to work, else they won't be able to sit alone in a room and think and left the room rather hurriedly when they hear some bad news.
this year I got 4 wives that i will keep till end of the year to see whether it still takes good care of me or not , others just hit and run to test my lucks petronm is one pf them . still reluctant to let go though the price seems disappointing but i really like its business model
growing older doesn't mean no entertainment hit and run is a good choice win, you got the pleasure of a lucky bet in 4 ekors lose , there is always a better next bet
Posted by Aseng > Jan 24, 2019 12:03 AM | Report Abuse X
Mr market is a crazy guy If you think you understand what a crazy man think you will die hard standing at the end The best is still dumb dumb hold a stock that worth RM1. 50 at the current price of 52 sen and do nothing but knowing we'll that Duke will generate more and more cash every quarter and worth more and more value as time go by.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
qqq3
13,202 posts
Posted by qqq3 > 2019-01-22 10:46 | Report Abuse
New look icon....
New branding, I like it...
Who is your marketing agent? Good job.