Posted by Sslee > 2021-04-24 14:31 | Report Abuse

Nowadays data are easily available in the internet and in fact information overloaded are the norm.

How useful are information when investing fraternity is chasing forward PE or finding the next amazon?

I had been writting about value investing and asking this question:

Should we took the standard definition of intrinsic value wholeheartedly: Intrinsic value is the Present value of the investment of all the expected cash flow over the lifetime discounted at the appropriate discount rate. Or question the definition why equity part of asset or at least the current assets minus total liabilities should be added to this intrinsic value?

In this case the intrinsic value of INSAS is Liquid assets – total liabilities + (CF1/ (1+d)^1) + (CF2/(1+d)^2) + ----- +(CFn/(1+d)^n)
Where:
CF = Cash Flow in the Period
d = Discount rate
n = The period number
This Intrinsic value is actually a Discounted Cash Flow (DCF)
Example of intrinsic value of INSAS is then the Sum of DCF expected cash flow from varies business streams.
For INSAS assets rich case, it is my opinion that the liquid assets minus total liabilities should be added to this intrinsic value.

How to explain Insas holding in Inari alone is worth more than 3X insas market cap?

Stock [INARI]: INARI AMERTRON BHD
Announcement Date 08-Apr-2021
Substantial Shareholder's Particular:
Name INSAS BERHAD
Details of Changes:
Currency -
Date of Change Type Number of Shares
05-Apr-2021 Acquired 100,000
Registered Name M & A Nominee (Asing) Sdn Bhd for Montego Assets Limited
Nature of Interest Indirect Interest
Nature of Interest Indirect Interest
Shares Ordinary shares
Reason Acquisition in the open market
Total no of securities after change
Direct (units) 0
Direct (%) 0.00
Indirect (units) 545,503,575
Indirect (%) 16.33
Total (units) 545,503,575
Total (%) 16.33
Date of Notice 08-Apr-2021

Posted by Ben Tan > 2021-04-24 16:13 | Report Abuse

Sslee, thank you for your comment.

I really don't want to comment on any individual stock, although I understand what you mean, and I agree that there are many clear signs of inefficient valuations on Bursa.

Posted by LimitUp > 2021-04-24 21:12 | Report Abuse

Thank you Ben for taking the time to write all your articles. I really enjoy reading them. Please continue the good work.

Posted by i3lurker > 2021-04-24 21:17 | Report Abuse

sslee

Thong Jai every night look at INSAS bank statement before going to bed.
maybe he takes it to wash room as well

no dividends => no share value at all

Posted by ezmoney > 2021-04-24 22:50 | Report Abuse

@ben tan, Do we need to subscribe to cimb trading or report freely available? Is it possible for you to share the link to these reports?

Posted by Ben Tan > 2021-04-25 12:59 | Report Abuse

LimitUp, i3lurker, ezmoney, thank you for your comments.

ezmoney, that would be the fastest way to get it, although it frequently gets shared in groups and chats a little later, too. I believe you could even find it uploaded on i3 sometimes.

Posted by Jonathan Keung > 2021-04-26 09:48 | Report Abuse

Without disrespect to any parties.maeket is not efficent.look at plantation counters.cpo prices have been on the uptrend since last year ( hitting their high 8 years } breaching $4,000 per tonne mark for the past 1 month yet most counters still lethargic and trending at their 2018 level { unlike glove counters jumping to their high

Posted by i3lurker > 2021-04-26 11:05 | Report Abuse

palm oil prices up but costs even up more.
Net effects cancel each other
and maybe potential losses for all plantation counters, just need a covid cluster and all is finished.

also just need a conflict palm oil ban and all is finished

the market is efficient
except that you just dun understand the hell of Big dangers involved....

Posted by Ben Tan > 2021-04-26 18:03 | Report Abuse

Jonathan Keung, i3lurker, thank you for your comments.

Unfortunately, in general [****] is a fundamentally inefficient stock market. I have briefly mentioned some of the reasons for that before:

- Imperfect information and information asymmetry - lack of or poor quality information, and/or insider information exploitation;

- Educatedness of market participants and, more importantly, lack of suitable educational opportunities;

- Number of market participants and concentration of capital - with the outflow of foreign investors, and the difficult access for foreign retail investors to the market, this problem is exacerbated.

Note that when I say that the market is inefficient, I in no way want to offend any of the market participants. On the contrary, market participants adjust to the conditions in which they operate. When the conditions are suboptimal, market participants, based on their mandates and positions, usually operate suboptimally, too.

I don't necessarily think this inefficiency shows up particularly with the CPO/plantation niche though.