privatize is a wild guess. however, judging from its performance over the pass 11 years, the current price indeed very attractive to the owner, it will be easy to fund for it given its financial status.
kcchong, you mentioned that its FCF for last year is 19.1m and FCF = Cash Flow From Operations - capital expenses. when i look at the finance report, its capital expenses is 39,220 (plant and machinery) right? cash flow from operations is 61,886 right? i can't get this 19.1m
Steve, when you examine a company's cash flows; money it pays out or receives each year from its normal business, look at the "Cash Flows Statement", one of the statements of its financial report besides the income statement and balance sheet. I repeat, Cash flows from operations is not cash in the balance sheet. I don't know where you get the 39220. Read my explanation to you before below.
Posted by kcchongnz > May 3, 2013 10:31 AM | Report Abuse X
Steve Jub, the cash of 61886 you are talking about is the cash it has in its balance sheet, not the cash flows from operations (CFFO),nor free cash flow (FCF).
You can find capital expenses from its cash flow statement under "cash flow from investment activities". It is the amount spend on purchasing property, plant and equipment. For plantation company, you may have to also include procurement of biological assets.
Cash flow and FCF only related to debt. TTM here means calculation from the existing price quote. It changes as price fluctuates everyday. But the cash flow position won't because its a snapshot of last year's (usually annual report) balance sheet. Don't worry too much about it!
debt equity ratio is not important to me because companies I chose to invest are with good earnings and cash flows. if with debts, even if it is high say at 1 time equity, but if the cash flows from operations can cover it by a few times, no worry. It is only if you buy stocks of companies with little earnings and cash flows now, but hope for future cash flows few years down the road, that you need to worry about it
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....
sephiroth
14,145 posts
Posted by sephiroth > 2013-05-03 14:53 | Report Abuse
Faster faster 0.285, hungry for more