Also, CFO is negative! No way this company can payback loans with current way doing biz! Unless it sell assets! I bet soon it need cash call or sell assets to sustain.
I guess some people who never do business before, will never understand how manufacturing business run and during growth phase, debt is a must to bite on.
Mr koon yew yin once said: I am only willing to buy the share if it is selling at a P/E of less than 10. I may buy it at a higher P/E if the company is the famous or leader of its industrial group and many financial institutions are holding the share.
There are many share selection criteria such as NTA, Cash flow, return of equity etc. I consider the earning per share (EPS) is the most important. It is the most powerful catalyst to move share price. When its EPS goes up the share price will also go up.
For a start, you must think like a businessman. Since the value of our Ringgit is dropping, I want to find export manufacturers that sell their products in US$. I do not think like an accountant, worrying about cash flow, too much borrowing etc. As a businessman, I know you need more loan to do more business and it takes time to manufacture the products and it takes time to deliver the products. Moreover, most buyers will not pay cash. They want delay payment of 60-90 days. As a result, the company account will show increased borrowing and poor cash flow.
A bizman tht dun understand abt cash flow is a failed biz man! U see successful bizman like ytl, paramount, Hong Leong all keep lots of cash and gearing low! They know when economy no good hard to borrow! The argument if bizman u mentioned is totally naive and senseless!
When economy no good, successful bizman keep cash, so why do you invest in those company? If the share price didnt goreng and they dont declare or reduce dividend. If you are rich and can afford to buy more than 2% of the total share in the company, does it makes you the owner of the company? Will you have the authority or influence to change the policy of the company and pay all cash to the shareholder??
You can be a cgpa 4.0 graduate with the perfect analysis skill, no doubt invest in very good managed company sound the best bet and lowest risk. But bear in mind that we are just small little potato investor who only benefit if the share price appreciate, dividend and bonus issue. What makes the share price appreciate? Earnings, growth and catalyst. What is the point of buying hong leong for instance and earn just 3.5-5% dividend a year? I can easily get this yield by invest in bond paper? Cheung kong bond singapore bond yield is 5.25%, and its basically near zero risk. Can you guarantee that hong leong share price wont fall during economy slow down and dividend policy can change anytime, its up to the management to decide not the shareholder.
There is no right or wrong in the context of investment. But we only know whether our strategy is right when we make money. The most important part of investment is your own stock portfolio allocation. Have a mixture of growth stock but not so well in financial position, and some good company with proven dividend yield. You may adjust based on your own risk appetite. This is the best way to maximize the return! Happy investing!
No need so emotional daz. Your story seems well written! But I can tell these directors purely goreng kaki! Spend time play shrs rather than focusing biz! I don't like my ceo, directors goreng stock everyday instead of growing biz! Unless u do?
Congratulation paperplane2 on your return!! Did you share your stock invest in blog to the community? Im sure we all want to learn from you! Dont be so self fish and just keep to yourself. And for the record, its the director's wife who do the buying and selling, and what makes you think that they are not focus, did the ceo goreng as well, i dont think so. Hope to read your blog soon if there is any and pls remember sharing is caring! I like to share story with my daughter so that she learn and grow as a caring person to this community.
Daz, thank you for your sharing articles on genetec and really appreciated. Time will prove genetec is a good company. More order on the way! Hope the company can give bonus issue in future.
Contract??? Haha, just as if they can turn into real cash!!! Look! Knm has RM billions of contract during 2007! It is selling RM3 then! And keep splitting, bonus! What happen now? It is selling 0.50, and is after it consolidate 4 to 1! It consolidate from 0.40 to range of rm1, and now ppl investing based on "contracts" now losing more than 50% even to date!
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....
sarariman
267 posts
Posted by sarariman > 2015-10-08 16:34 | Report Abuse
still holding on to this~huat ah!