I think you are qualified to write a children's book. Or fantasy maybe. Non-fiction is definitely not your forte.
Remember your comments on overpriced QL? And how the entire market dropped by 30% or more? What happened to QL prices then? Rock steady.
And you with your comments and thesis and ideas and strategies on QL? You would have been in hot soup during this period..
While high 50PE investments in ql(food), yinson( o&g) and topglov(manufacturing) remain far above last year prices, allowing collateral for margin to be used to purchase discount stocks at wonderful prices (pchem at 4.09. gkent at 46 cents, serbadk at 1.15).
You never who had been swimming naked until the tide runs out.
Another nice theory with by kcchongz but whose real world results totally different from his estimates.
His results on perstima? Share price drop by half from his estimates in 2017, uchitec? Scientex is the only exception, only because it ventured successfully into property development. Padini? What is the total 3 year san nien concept earnings using dividends? For his favorite stocks?
kcchongnz Good article to read for most people here. However, this statement here from you puzzles me,
""what is the sacrifice of shareholder value? Anytime a company takes on more outside debt to grow its revenues and earnings, the shareholder value is damaged. Anytime a company dilutes shares to buy companies or gives out dividend, it dilutes shareholder value. (trust me this happens every single time, a company that gives out high dividends usually end up in a bad position)""
Especially the last one.
1) Taking more outside debt sacrifice shareholder value? If return from borrowings great than the costs, it can't be right. This I believe is a typing error from you.
2) A company gives out high dividend usually end up in bad position? A bad position because share price drops? Are we talking about just capital gain, or dividend return is just unimportant and not part of the total return?
I have written a few articles on stocks on high dividends; Padini, Sciientex, Perstima, Uchitech in the links below,
Uchitech in the first link has been a multi-bagger after considering all the dividends and bonus shares although its growth is not worth mentioned about.
In the second link, the total price appreciation is still 60% after 2 years, while the broad market is down by 1.6%, after taking into considerations of dividends.
I have written about many stocks of high dividend yield, and on the whole, they outperform the broad market by a wide margin too.
Most of these companies still grow, but they just need a small portion of its profit to grow because of their high return on capitals, and the rest return to shareholders, to do what they like. 19/04/2019 1:42 PM
Oh as if writing children's book sounds like a piece of cake than writing non-fiction Mr Phillip. How naive that can be. I take that as a compliment nonetheless.
Oh right, again as if an overvalued QL needs to drop in tandem when the market drops 30%. And if it doesn't, it shows that it isn't overvalued, what kind of logic is that?
Common, if you're so shiok competing with others (to beat the boredom of life), I'll pick Scientex, you go QL, starting today, 10 years to 16 Apr 2030, if we and i3 still alive, the highest CAGR wins, deal?
Look, I don't want to compare past performance of Scientex vs QL since 2012 (the time I start owning), even though Scientex beats QL in capital appreciation (even after a 20% fall in March, even at PE10 not 50, and despite how I hate to boast), because you're gonna come up with bunch of nonsense like oh i don't have record to prove I own it since 2012 lah kinda BS.
So lets do it for next 10 years, maybe you think it isn't fair for PE10 to go against PE50, although I think you won't, considering that you think high PE beats low PE all the time, so it is a fair deal right?
In case you're not so sure, I can pit Ferrari (RACE.NYSE) against QL, another stock that I own. RACE has PE closer to QL, PE47, does that make it more fair? Make your pick, Scientex or Ferrari.
Since I know you definitey wont be around, I'll pass kid. Your investment thesis has already been proven wrong.
"Oh right, again as if an overvalued QL needs to drop in tandem when the market drops 30%. And if it doesn't, it shows that it isn't overvalued, what kind of logic is that?"
Do you even understand what you are talking about? When the entire world is fleeing equity markets, a PE 50 company like QL which is "overvalued" doesn't drop? But it is still overvalued? So what does overvalue mean to you? Expensive? When entire world become cheap, then shouldn't QL drop as well? Well yes of course it did. It dropped from 8.60, to 6.90(24% drop) , but subsequently recovered back to 8.17. Why? Why would a pe50 recover? Because many investors including myself see value in an 11 billion company, academics like you.
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....