Posted by kcchongnz > 2013-07-14 15:56 | Report Abuse

Posted by patricksim53 > Jul 13, 2013 06:41 PM | Report Abuse
kcchongnz increased liquidity through bonus issue? I say it is not so. It is increasing the amount of shares in the market so that more people can buy the share and let sentiments dictate its pricing. More shares in the market means more leeway for the price to move. Remember the story about owning Genting Bhd share when it started years ago. How much would you have made now if you had owned 1 lot then?

"increasing the amount of shares so that more people can buy" means increase liquidity of the shares loh.

If Genting hasn't done the bonus issue, share split or whatever, it must, I say must be selling for maybe a hundred ringgit per share now instead of RM10. It will work out to be the same thing whether the corporate exercises were carried out or not.

Nowadays buying share is at a lot of 100 shares, not 1000 shares before. 100 shares of Genting is only RM1000.

Investors (emphasis investors, not punters) invest in shares based on certain metrics, whether it is PE ratio, P/B, dividend yield or whatever.

So do you think Warren Buffet is so stupid of never split his Berkshire Hathaway shares? 1 share in 1995 was sold for USD25000. It is USD 175500 now. So the more Warren Buffet should split his share because few people can buy 1 share of BH. But why didn't he do it? Because he doesn't believe share split creates any value.

Posted by tonylim > 2013-07-14 15:57 | Report Abuse

ok.guys, i rest my case.

Posted by kcchongnz > 2013-07-14 17:23 | Report Abuse

Bonus issue

Bonus issue - Is it a bonus really? From below, assuming Company A announced a bonus 1 for 1, the paid up capital of the company changed from RM5 million to RM10 million. However, the Shareholders Funds does not change at all - remained at RM11 million. A bonus issue does not do anything to the fundamentals of the company.

Paid up capital 5,000,000
Retained earnings 6,000,000
total equity 11,000,000

After 0ne-for-one bonus
Paid up capital 10,000,000
Retained earnings 1,000,000
Total equity 11,000,000 Same

An example of account for bonus issue
The individual shareholder will get an extra 1 share for every 1 share that he holds, but the price will be divided into 2 from its original price. For example, if the price is being traded at RM1.00 after the ex-date, it will be readjusted to RM0.50. Investors that chase after bonus is actually chasing after something that does not have any impact to fundamentals - just accounting adjustment.

Source: http://www.intellecpoint.com/search?q=bonus

Posted by inwest88 > 2013-07-14 17:27 | Report Abuse

kcchongnz, you have a very valid point. But as you know a lot of people has the belief that such a move is really a bonus and it is always being used to push share prices up. In fact it happens in almost all cases.

Posted by kcchongnz > 2013-07-14 17:36 | Report Abuse

inwest88, i agree with you. But the risk is well before the announcement, insiders such as those in the company, investment banks doing the exercise, management and directors and their relative and friends etc already know the news. They know the behaviour of the market participants that they will buy the share at higher price once the announcement is made. So what do the insiders do? they would have bought the shares long ago and hence have jacked up the price somewhat.

So when the public hears the announcement, they will buy the shares also which the price has gone up way above the intrinsic value. What would the insiders do? Sell to you loh.

So what will happen at the end. say a month later? The price of the share would probably decline back to its adjusted intrinsic value. So those who buy the shares late would lose money, I believe most of the time.

Posted by kcchongnz > 2013-07-14 17:37 | Report Abuse

A good read on what is bonus issue.

http://articles.economictimes.indiatimes.com/2009-10-12/news/28384721_1_bonus-issue-bonus-shares-paid-up-equity

Posted by inwest88 > 2013-07-14 17:40 | Report Abuse

You are absolutely correct. And thanks for recommending the read !

Posted by patricksim53 > 2013-07-16 12:08 | Report Abuse

The recent IPOs are not doing quite well. Wonder whether it's worth our time to apply. Cases in point Astro and AAX. Any comments?

Posted by Winnie_Ngu > 2013-09-13 13:32 | Report Abuse

Awak

Posted by matrix109 > 2013-09-23 12:43 | Report Abuse

m'sia boleh!

Posted by cindy_gal > 2013-09-24 21:35 | Report Abuse

Apollo to follow dlady footstep..waiting for it to turn into a billion dollor company n even higher..market cap 1 b..apollo is worth 12.5 =)

Posted by leslieroycarter > 2013-10-05 21:50 | Report Abuse

the water will find its own level?

Posted by Desmond Goh Kok Seng > 2013-10-06 01:20 | Report Abuse

water?

Posted by Fortunebull > 2013-10-06 02:34 | Report Abuse

Ha! Look at Brahims for rm3 margin in medium term! Fortunebull like halal story! Halal is billion dollar industry! Haram people also eat halal! But halal people don't eat haram! Then again Fortunebull can be wrong! Fortunebull see a lot of halal people getting drunk on haram! Ha! Brahims is better choice! It's Nestle halal!

Posted by wwwcomment > 2013-10-08 17:14 | Report Abuse

This counter is really strong

Posted by BigFund > 2013-10-08 20:06 | Report Abuse

good counter....

Posted by cindy_gal > 2013-10-09 22:01 | Report Abuse

Target sell when market cap 1 b ^^

Posted by wwwcomment > 2013-10-09 23:58 | Report Abuse

I bot in some. I shud hv bot earlier but I believe still got room

Posted by tonylim > 2013-10-09 23:58 | Report Abuse

kcchongnz, you are damn good la, closed 4.99
Your valuation of 4.55 is history.

Posted by kcchongnz > Dec 5, 2012 08:13 PM | Report Abuse

tonylim, for you I worked until so late (1.12am here) to come up with a valuation for Apollo. Here is it.
First of all, I like consumer food business. Apollo has a good business with a very healthy balance sheet and consistent good cash flows. The only question is whether Apollo’s business has good earnings and any growth potential. The following table shows the performance of Apollo in the last 7 years.
Year 2012 2011 2010 2009 2008 2007 2006
Revenue 200548 176292 159531 175337 181144 154272 142370
EBIT 28593 22578 32249 25442 24363 30105 26365
NI 21741 17855 24678 20918 20973 24554 20761
EPS,sen 27.18 22.32 30.85 26.15 26.22 30.69 25.95
Profit margin 10.8% 10.1% 15.5% 11.9% 11.6% 15.9% 14.6%
ROE 10.1% 8.6% 12.1% 11.1% 11.8% 14.4% 12.9%
*Value in thousands
It can be seen that revenue grew moderately at a rate of 6% a year from 2006 to 2012. Net profit however has been flattish. If we were to base on these data to value Apollo, I would say Apollo is fully valued at the close of RM3.33 per share today.
Graham valuation would give a value of 0.272*(8.5+2*6%)*4.4/4.0=RM2.58. Basing on average ROE, another valuation would be 12%/10%*2.69=RM3.23. Where 8.5 is the PE ratio, 4.0is the long-term MGS rate, 6% is the growth rate, 10% is my required return and 2.69 is the NAB of Apollo.
However, if you look carefully at its last four quarters’ performance, one can see clearly that revenue and profit has been increasing steadily quarter on quarter. For the first quarter 2013 results, revenue and net profit has improved by 19% and 151% respectively on increased turnover and cost cutting.
Basing on the earnings before interest and tax for the trailing twelve month of 34.4 m, the assumptions of 10% required return and a growth rate of 8% for the next 5 years and 3% subsequently; a discount cash flows analysis shows that Apollo’s ordinary business is worth RM3.84 per share. Adding the excess cash of 71 sen, the intrinsic value of Apollo is RM4.55 or a margin of safety of 27% over its RM3.33 share price today.
The question is if the 8% growth rate is reasonable. It is in my opinion basing on its last 4 quarters of performance. If not what happen? Then the valuation is wrong, obviously.

This is a rush job. Hope to have critical comments from anyone.

Posted by cindy_gal > 2013-10-10 00:30 | Report Abuse

Regret not sapuing at 3.30...oni went all in when it was 4.10 - 4.20.

Posted by tonylim > 2013-10-10 01:08 | Report Abuse

Small capital base.

Posted by calvintaneng > 2013-10-10 13:41 | Report Abuse

Dear Fellow Investors at Apollo Food,

kcchongnz is absolutely correct in his valuation. At Rm2.20 Apollo was a great buy in year 2009. Price has shot up to touch RM5.00 today.

Consider carefully:

Apollo sells low end food - revenue is growing moderately at 6%

Price has shot up 31% every year from 2009 to 2013.

Dividend has grown marginally. (High dividend turns mediocre due to price surge)

Conclusion: Apollo price has run ahead of its fundamental value.

The Boss exercise around JB City every morning. A wealthy aged man slowing down..

Apollo was a great buy at RM2.20. Time to take profit and find another "apollo" Where?

PM Corp (4081) Another potential Apollo at Rock Bottom Price of 22Cts! Can overtake Apollo and go to RM10.00. Possible? Of course nestle went up from RM11.70 (1998) to RM69.00.

Like the Rocket Apollo that landed on the moon in 1969, PM Corp has the potential to rise up manifold. Really?

Check it out CAREFULLY at PM Corp Forum Today. Read the whole tread (quite long).

You will be glad you did!

Don' miss the bargain of a life time!

Posted by heavyth > 2013-10-10 13:49 | Report Abuse

What is your analysis of PM Corp (4081) > kcchongnz ?

Posted by calvintaneng > 2013-10-10 15:33 | Report Abuse

Desmond Goh Kok Seng that was the same reaction when we , the Johor investors, recommended Apollo Food highly in year 2009. Many brushed aside Apollo Food and never bother to check it our properly.

Some unfortunate speculators after having been warned by "expert" have wandered around to search for better buys. Unfortunately, some landed on Maemode, Transmile, SAAG & other land mines and lost everything while Apollo Food performed steadily with consistent yearly dividend.

So please do a serious research. Have a nice day.

Posted by LEONG653 > 2013-10-11 15:14 | Report Abuse

I have just read the blog by Kassimsthoughts.blogspot.com about Apollo. It gave me confidence to invest and keep Apollo shares for its good dividends. Thanks Kassim for writing about Apollo!

Posted by wwwcomment > 2013-10-20 16:10 | Report Abuse

Why always stanant after I bot?

Posted by Sibu > 2013-11-09 15:47 | Report Abuse

1 share Apollo is RM 5.00
Normal price of Apollo Layer cake = RM 5.30 perbox
Apollo layer cake Everwin sale for RM 4.69, (永胜会员日)
Giant is RM 5.89 for each box of apollo

I wonder when APOLLO's share price will reach RM 5.89

Posted by wwwcomment > 2013-11-10 23:05 | Report Abuse

Soon, I hope

Posted by wwwcomment > 2013-11-22 13:56 | Report Abuse

Yes, move up baby

Posted by wwwcomment > 2013-12-24 13:22 | Report Abuse

My goodness what happen? Hv to cut loss.

Posted by mu_cheatwai > 2014-01-06 10:35 | Report Abuse

time for revalue

Posted by Nihar Mynihar > 2014-03-28 09:37 | Report Abuse

when Quarterly rpt on consolidated results for the financial period ended 31/1/2014 will be publish??

Posted by Edwin > 2014-03-28 20:47 | Report Abuse

Already

Posted by goldenhope > 2014-03-31 10:17 | Report Abuse

Hope management propose bonus issue

Posted by Nihar Mynihar > 2014-03-31 10:18 | Report Abuse

any news abaut bonus issue ka??

Posted by updown > 2014-03-31 16:55 | Report Abuse

None of the brokerages / investment firms actually cover this stock. How weird.

Posted by tanyuethan > 2014-04-10 15:50 | Report Abuse

so quiet... any progress?

Posted by goldenhope > 2014-04-12 15:44 | Report Abuse

accumulate RM4.70+-, wait for dividend at least 25sen, hope for bonus issue

Posted by AyamMuda > 2014-04-14 18:11 | Report Abuse

EAT MAMEE

Posted by charlietan89 > 2014-05-06 23:51 | Report Abuse

Soon, bonus issue and share price fly like Apollo rocket to the moon?

Posted by SureFatt > 2014-05-07 14:44 | Report Abuse

sure or not ? Bonus issue I don't think so

Posted by KinSoon Kok > 2014-05-13 11:18 | Report Abuse

I fully support bonus issue. The stok liquidity is too low! In fact the top 30 holders already account for 80 % of the outstanding shares. U see only 30++ thousand trade value. Where got big fish come in.......

Posted by tonylim > 2014-05-13 13:04 | Report Abuse

Still waiting kekeke

Posted by yfchong > 2014-06-05 13:23 | Report Abuse

Lol, i have not manged to buy apollo share, just bought the products manufactured by apollo looks appealing fr outside, v sweet good point to reduce the cost (opportunity cost).........

cheers

Posted by tookosin > 2014-06-11 21:31 | Report Abuse

Lonbisc...the price still very low...should be good for investment.

Posted by Nihar Mynihar > 2014-07-03 10:05 | Report Abuse

When General Meeting?

Posted by ilovedivdend > 2014-07-24 11:59 | Report Abuse

i love dividend

Posted by baiyuensheng > 2014-07-31 17:39 | Report Abuse

when the dividend is 25%, does it means that it is 0.25 sens? Or 25%xPAR VALUE? In this case, apollo is a 1RM share? Thx for sharing.

Posted by LEONG653 > 2014-08-01 17:12 | Report Abuse

The answer is yes, a 25% mean RM250 since Apollo is a RM1 share par value. The problem is there are many companies that are not less than RM1 share par value. So when they announce dividend payment in %, it can confuse many investors. I would have prefer companies to announce dividend payment in sen. That would be clear and easy to understand.

Posted by Ayam7 > 2014-08-02 18:46 | Report Abuse

Ayam Tua bought it 3 years ago when the price was RM 2.xx,

he sold partially once the price was goreng to RM 5.50+, and bought HEXZA @ 65~70 sen,
now he sold HEXZA @ 80+ sen and bought EAH (12.0~12.5 sen), IFCAMSC(before goreng, 10+ sen).

Ayam Tua really smart