Posted by yfchong > 2016-09-13 16:09 | Report Abuse

This is the best already. .. ..... should make a pause. .

Posted by chl1989 > 2016-09-13 17:16 | Report Abuse

Sifu skyhawk, closing seems firm. You expect correction so soon? :)

Posted by skyhawk > 2016-09-13 18:03 | Report Abuse

chl1989,

Yes....after an impressive run from 1.24 (19/7 )....pullback is now on the card.

Posted by chl1989 > 2016-09-13 20:49 | Report Abuse

I see. Correction is normal. I am more interested to know how far this bull can go after correction :)

Posted by valuelurker > 2016-09-13 22:32 | Report Abuse

You nincompoops just know how to plug in numbers into your models but dont actually know how these things work.

Company A's reinvestment, assuming your growth is the same 10%, will be $121 at year 2, due to COMPOUNDING.

Company B will forever be the same, assuming no growth as you did below.

Clearly, growth > no growth.

Jeezus if you 'FUNDAMENTAL INVESTORS' dont know anything, please dont espouse your lack of knowledge on the internets. At least go verify with your sifu kcchongnz before you post. thanks

QUOTE:
Ricky Yeo: I will debunk your myth now.

Company A
Year 1: Revenue $100, Profit $10 (10% margin). Reinvest 100% (or $10)
Year 2: Revenue $110 (10% growth), Profit $11 (10% growth).

Company B
Year 1: Revenue $100, Profit $10 (10%). Reinvest 0% (or nil)
Year 2: Revenue $100 (0% growth), Profit $10 (0% growth)

So in example above, im sure you will love company A over B, and A worth more than B, but can that be true?

If you are an owner of A, year 1 net cash flow is $0, because you reinvest everything to buy machines, yes you get a 10% growth in year 2, but your return is still the same for both years. 10%!

If you are an owner of B, there is no growth for year 2, but year 1 you have cash flow of $10, you CHOOSE not to reinvest the capital and declare dividend, all $10 back to shareholders.

So when someone say growth is better, they forget that growth doesn't come from thin air. You need capital to grow. Where do you get capital? From profit of course. So if profit, or return is the same for A and B, which is 10%, why should A worth more than B?

A is only worth more than B WHEN the capital reinvested can generate a higher return, in this case above 10%.

If A decide to reinvest and earn 5% return instead of 10% like in year 1, is growth good?

Posted by valuelurker > 2016-09-13 22:34 | Report Abuse

At FCF12mil, no growth, 10% discount rate, IV is 1.16.

Keep holding la

Posted by chl1989 > 2016-09-14 00:06 | Report Abuse

"no growth". I kasih lu dua like. :)

Posted by Ricky Yeo > 2016-09-14 12:50 | Report Abuse

Wow valuelurker calling names, calm down. So you're saying because of compounding, therefore growth > no growth.

Before we examine if that is true, please note you are pinpointing on my example, which uses a 10% growth rate and 10% discount rate.

Now we are clear from confusion. So, if you say a company that grows at 10%, from $100 to $260 in 10 years (that is 10% compounding p.a.) is worth MORE than a company that has 0% growth, earning $100 for the next 10 years,

THEN

You have your valuation wrong. I welcome you to show me your DCF anyday anytime.

Clearly in my example, both companies ROIC is 10%. So it is beyond me why a company can worth more because they choose to grow. How does a company grow? Printing money?

You can compound all you like to the end of time, but what do you get when you divide 10% with 10%?

10% / 10% = ? Simple math.

I must admit I know something, but not everything. When I don't know something, I don't write. But when I write, that's because I know what I'm writing.

Posted by Benjamin_8888 > 2016-09-14 13:52 | Report Abuse

:-)

Posted by tksw > 2016-09-14 15:35 | Report Abuse

sifu-sifu sekalian, just tell me buy or no buy lar....

Posted by probability > 2016-09-14 15:39 | Report Abuse

tksw...you are the greatest sifu....as long as you are here...I know FLB got hope...he he.. but I am out at the moment..

Posted by tksw > 2016-09-14 17:06 | Report Abuse

probability sifu, the boss still holding ler, actually adding, no scare.

Posted by tksw > 2016-09-14 17:07 | Report Abuse

this is a cash cow ler, milky, milky

Posted by gojirakingkong > 2016-09-15 09:43 | Report Abuse

I'm in ! hehe

Posted by smartInvestor1 > 2016-09-15 12:53 | Report Abuse

不会爆升那种咯 已经没有了以前的优势。sideway到最后很闲的 大环境不好时又容易被套！！

Posted by Aeric Khoo Guan Tee > 2016-09-15 14:44 | Report Abuse

flbhd现在只是一个不错的高息股而已
要爆升除非USD 1/RM 4.5 或 全年eps30 或有新的老板进来收票
不然flbhd就只是一个高息股而已

Posted by ffforever > 2016-09-15 15:03 | Report Abuse

高息股也不错嘛。myr depreciate to 4.15 d

Posted by tksw > 2016-09-15 18:02 | Report Abuse

fforever sifu, flb is going to fly again

Posted by Aeric Khoo Guan Tee > 2016-09-15 23:05 | Report Abuse

Won't fly anymore~only can diam diam collect divided only
Maximum fly to RM 1.8 or 2

Posted by chl1989 > 2016-09-16 00:22 | Report Abuse

Back to rm3 in 2 years time? Also good mah? In my dream :)

Posted by Aeric Khoo Guan Tee > 2016-09-16 07:54 | Report Abuse

Difficult to back RM 3~
Unless miracle happens loh~
1.usd1/RM 4.5
2.maintain eps 30 above
3.new boss come to collect shares
4.kky/lu stop disposing and acquire instead

Posted by ivan9511 > 2016-09-18 16:41 | Report Abuse

sure fly

Posted by tksw > 2016-09-19 10:21 | Report Abuse

ole-ole 156 oso got

Posted by tksw > 2016-09-19 15:29 | Report Abuse

bili-bili, jangan tak bili, nanti lari ayam

Posted by tksw > 2016-09-19 17:04 | Report Abuse

hohoho, 154 aleidi

Posted by tksw > 2016-09-19 17:04 | Report Abuse

tomolo cross 160 then pancut....

Posted by Benjamin_8888 > 2016-09-19 17:06 | Report Abuse

flying to the moon

Posted by Jeremy Loi Fuang Suu > 2016-09-19 17:29 | Report Abuse

卖掉又赚一笔 过几天又会掉下去 很好赚

Posted by ivan9511 > 2016-09-19 18:43 | Report Abuse

yes , tomorow continue fly , please dun going down again
we all support you
all the best team
huart ah

Posted by tksw > 2016-09-20 09:14 | Report Abuse

ole-ole, FLB terbang tinggi-tinggi

Posted by So3763jbt > 2016-09-20 09:57 | Report Abuse

Still can in 1.59

Posted by tksw > 2016-09-20 11:33 | Report Abuse

olre- ole 161

Posted by Ezra_Investor > 2016-09-20 15:04 | Report Abuse

Wow, manyak cantik. These 2 days got some volume.
Back to 20EMA and Fib 61.8% support.
Trend reversal incoming?

Posted by Jeremy Loi Fuang Suu > 2016-09-20 16:59 | Report Abuse

walaueh 炒到这么高？几时天亮？

Posted by kaikai > 2016-09-20 17:53 | Report Abuse

Good news in the pipeline. Should add another 15% before correcting. Good Luck

Posted by chl1989 > 2016-09-20 18:02 | Report Abuse

Mind to share what is the good news? Bonus issue? Special div? :)

Posted by khuen > 2016-09-20 18:26 | Report Abuse

The share price of a fundamental sound company will be reflected eventually

Posted by Huat1 > 2016-09-20 18:31 | Report Abuse

Technical charts showing bullish signal since yesterday!
Upward trend now.

Posted by investabc > 2016-09-20 19:49 | Report Abuse

One man's trash is another man's treasure

Posted by Benjamin_8888 > 2016-09-20 22:31 | Report Abuse

HUAT arrr

Posted by Benjamin_8888 > 2016-09-20 23:08 | Report Abuse

Chl, scs good news will come in nov :-)

Posted by chl1989 > 2016-09-20 23:50 | Report Abuse

Wow. Good to hear that. I will buy more tomorrow. Average up :)

Posted by Benjamin_8888 > 2016-09-21 00:13 | Report Abuse

Me no more bullet, need to let go other counters but still got time :-)

Posted by Vizhai > 2016-09-21 00:14 | Report Abuse

Next quarter got give dividend or not?

Posted by Benjamin_8888 > 2016-09-21 00:30 | Report Abuse

Chl, typo error *csc

Posted by tksw > 2016-09-21 16:23 | Report Abuse

hohoho, USD 4.15+- liao

Posted by angkokann > 2016-09-21 18:54 | Report Abuse

bought some today..

Posted by Hing Chuon > 2016-09-22 09:37 | Report Abuse

drop again?

Posted by Huat1 > 2016-09-22 22:19 | Report Abuse

Downward trend...now reversal.
Technical rebound...

Posted by ivan9511 > 2016-09-23 19:57 | Report Abuse

hope up back