Posted by hpcp > 2019-12-21 19:32 | Report Abuse

Hi Choivo, thanks for the article. What do you think of elkdesa, which has better NPL ratio and business has been growing consistently

Posted by Choivo Capital > 2019-12-21 21:10 | Report Abuse

I quite like the business. The one thing about that co that is not so good was that the management did not leverage up as they should (since its a financial institution they are running) and instead decided to do non stop rights issue.

Recently the management have decided that they would like to leverage up. So that is a good thing.

Second part is that, the payees can't direct transfer in the payments, but have to go to the counter to make payment, which i find very odd.

Of course, this could very well be an edge, if your entire customer base is under banked, but its odd.

===
hpcp Hi Choivo, thanks for the article. What do you think of elkdesa, which has better NPL ratio and business has been growing consistently
21/12/2019 7:32 PM

Posted by Choivo Capital > 2019-12-21 21:15 | Report Abuse

Sslee,

https://choivocapital.com/2018/11/28/the-art-of-valuing-insurance-companies-and-why-teh-hong-piow-is-a-god-lpi/

The problem with Tunepro for me is,

1) They tried to go into general insurance, which is not their edge, travel insurance division is incredibly profitable.

2) Their fund management for the investment is quite bad, some of it is in unit trust, which are just stupid and inefficient. If you dont know what to do, put it in the S&P500 index or smtg. The rest are in MGS.

3) Everyone sells car insurance online now. But health, life, savings plan etc those are usually not sold online. TUNEPRO is not doing anything in trying to do that. If they did, they can cut the 6% first year, 4% second year commission and cost, giving them a huge edge. But they are not. So..

I recently re-buy some at 0.570, but very small position, mainly because its cheap.

Its not about the visionary of the management, but the economics of the business first. Unless they actually know how to run an investment fund on their own and do general insurance, i find it hard to see their edge.

Posted by Sslee > 2019-12-21 22:31 | Report Abuse

Dear Choivo,
Thank you. Will attend next Tunepro AGM and let them know
about your suggestion.

Posted by i3lurker > 2019-12-21 22:37 | Report Abuse

when you copy

you do not understand

just copy blindly with no understanding

monkey see

monkey do

monkey see man slaughtering cow

monkey take baby and chop baby head off

monkey see WB buy something

monkey also buy

Posted by Choivo Capital > 2019-12-21 22:38 | Report Abuse

I wished i followed WB and sailang into apple at Dec 2018.

Posted by Icon8888 > 2019-12-21 23:57 | Report Abuse

Hmmm interesting ...

But there are so many other cheaper stocks in Bursa ...

Maybe I will consider adding a bit to my portfolio if it falls to RM8 ...

Posted by Choivo Capital > 2019-12-21 23:58 | Report Abuse

True. It may very well get to that price if the QR's are matched with a financial crisis.

That would be very interesting.

Posted by Icon8888 > 2019-12-22 01:42 | Report Abuse

Lending to poor people and charge exceptionally high interest rate

This is exactly the kind of stock that you can’t lock it up for five years and throw away the keys

Not touching it even with a ten foot pole unless somebody can explain to me how they can be so good at collection and debt recovery

When something defies nature, it makes me uncomfortable

Posted by i3lurker > 2019-12-22 08:39 | Report Abuse

these are sold online without medical checkup

////health, life, savings plan etc those are usually not sold online.///

Posted by Sslee > 2019-12-22 12:13 | Report Abuse

Hahahaha,
Choivo already forget about his defination on wonderful company that must seek to benefit society at large.

Posted by Choivo Capital > 2019-12-22 14:31 | Report Abuse

My preference is wonderful company, but price matters, as well as my own circle of competence.

Very hard to find wonderful company at good or fair price.

Tsmc is pretty decent lah

Posted by Sslee > 2019-12-22 18:47 | Report Abuse

Haha Choivo,
Just pulling your leg as I appreciate your intention of explaining the previous accounting standard IFRS 139 and current IFRS 9 emphasizes shifts to the probability of future credit losses, even if no such triggering events have yet occurred thus affect the reporting of profit.
But I take offend of your sentence, “Quite interesting, does not sound like the place i want to work at (since i’m in financial reporting), but definitely sounds like the kind of company whose stock i want to purchase”

Any good company should place customers first, employees second and shareholders third because
1. With happy customers, you will get more customers and thus your business will prosper.
2. With happy employees, they will produce more and be more efficient.
3. With business continuously growing, shareholders will be rewarded with high premium of PE 25 to 50 to 100 and beyond.

I am lucky to work in a company that believes we are blissful to be in an industry that benefits all our stakeholders. It is this believes that drive us to do our best, to be the best and prepare to walk an extra mile for our customers.

Thank you

Posted by Outliar > 2019-12-23 01:37 | Report Abuse

Just stick to Petron :P

Posted by Choivo Capital > 2019-12-24 15:52 | Report Abuse

Haha my petron is easily 5-6 times the size of my aeoncr position. Just bought a bit more that day, and im honestly a bit itchy to buy more.