Posted by KC Loh > 2013-07-16 11:26 | Report Abuse

Yeah YOCB numbers look good. Congrats to you SOON :)

Posted by tonylim > 2013-07-16 11:37 | Report Abuse

can i buy now at 66

Posted by KC Loh > 2013-07-16 11:44 | Report Abuse

who is stopping you? :)

Posted by tonylim > 2013-07-16 11:48 | Report Abuse

ok. 10 lots. eng chiew

Posted by tonylim > 2013-07-16 11:49 | Report Abuse

thks guys

Posted by kcchongnz > 2013-07-16 14:02 | Report Abuse

Posted by Steve Jub > Jul 16, 2013 09:44 AM | Report Abuse
KCchong, just wondering why some of the good stock like MYEG will keep surging even the PE is so high?

This is called the greater fool theory. The notion suggests that there will always be a greater fool to buy from you what you yourself purchased at far too high a price. Alas, at market tops, all fools have bought, so there’s no new fool to bail them out.

Myeg is definitely a good company with good contacts for jobs. 18% growth in net income last year. Great ROIC of more than 35#. Excellent cash flows with good quality earnings, healthy balance sheet.

But at PE of 40, price-to-book of 9.2, no matter how good the company is, I am not willing to pay that price. That price has incorporated very high future expectations on Myeg.

Posted by leviathan > 2013-07-16 16:36 | Report Abuse

Kia ora - A&M Realty Bhd

Posted by tonylim > 2013-07-16 16:48 | Report Abuse

http://t2.gstatic.com/images?q=tbn:ANd9GcSZXaogmsOyRkkBxpz6Wjee0J7ztyG2c7jugO_k2MxRmaxz5oEX

Posted by Steve Jub > 2013-07-16 17:41 | Report Abuse

KCChong, noted. I guess it is over-bot stage now.

Posted by hng33 > 2013-07-16 17:44 | Report Abuse

How about OKA, EPS= 9.3sen, NTA= RM 1.63, Dividend 3.5sen TE, yield at 5.5% nett

Posted by Jonathan Keung > 2013-07-16 18:00 | Report Abuse

what's good (buy) today May not be a good buy one week later. trade within your means. split between trading play and dividend (long term play)

short term (contra) is different from long term. sentiment is different from fundamentals. this is my personal opinion.happy trading guys

Posted by kcchongnz > 2013-07-16 18:42 | Report Abuse

Posted by mlg123 > Jul 15, 2013 12:25 PM | Report Abuse
kcchongz,
what do you think of GUH? the company have net cash per share of 90 cents and eps is roughly 3-4 cents per share lately due to much lower contribution from its main business of PCB manufacturing.

If you want to hunt for a value property stock to invest, I think GUH may suit you. The only, yea the only, problem is its earnings will be likely to be stagnant and without any growth in the future. But as it is selling so cheaply, it is worth investing in my opinion.

Below I use ColdEye's 5 yardsticks to see if GUH is a value stock. It is yes yes and yes.

ColdEye 5 yardsticks
GUH 1.370
1 ROE 8.5% OK
Net profit 36111
Equity 422708
2 Cash flows, average
CFFO 40837 Yes
FCF 24096 Yes
3 PE ratio 6.9 Yes
Price 1.370
EPS 0.1985
4 Dividend yield
Dividend , sen 0.06
Dividend yield 4.4% >3.5% Yes
5 Price/NTA 0.60 <1.0 Yes
NTA 2.280

Posted by Paul Ng > 2013-07-16 19:29 | Report Abuse

OKA No is very impressive especially the NTA vs the share price.

Posted by Paul Ng > 2013-07-16 19:53 | Report Abuse

For AKO. However, the gross profit is down from 14.4% to 11% only.

Posted by aunloke > 2013-07-16 20:29 | Report Abuse

YOCB has moved up more than 20% since after GE ,it may stay at this level for some time before to move up again if any.

Posted by ipomember > 2013-07-16 20:39 | Report Abuse

aunloke, mind to share the business for YOCB? What is so good with it? Future prospect or plan? Anything?

Posted by aunloke > 2013-07-16 22:51 | Report Abuse

ipomember, YOCB is the manufacturer of home linen and curtain,go to yoongoon.com you can get the details . There is nothing spectacular about the company but it is consistent with it earning ,for the last 3 years the quarterly net income is about 4 to 5M which gives the EPS more than 3 sen per quarter. 3Q for FY2013 is more than 10 sen and we can expect the earning for FY 2013 to be 13 sen. Since we are talking about hidden gems that can give us more than 50% profit and we know that on the average these gems cannot command a PE more than 10 so we have to look for stocks with PE less than 6.6 and YOCB fits this bill. The chance for me to get good profit may be higher as I bought it at 53 sen and collected 2 sen div. If you were to buy it at 66 sen and it lingers at this level your time money may be wasted .

Posted by ipomember > 2013-07-16 23:51 | Report Abuse

Thanks aunloke, basically i am abit uneasy when dealing with this kind of low PE stock, after klci has rallied for so long, its still traded at undemanding valuation?Sometimes its really hard to convince myself that the market had not found this "GEM" yet, if it is the one..

Posted by Avocado_C > 2013-07-17 00:08 | Report Abuse

What about- FIAMMA (Not KFIMA)?
1) ROE = 10.3% (Profit: 26.9m, Equity: 260.9m)
2) CFFO = 12.6m
FCF = 11m
3) PE ratio = 7.83 (Price @ 16 Jul: 1.69, EPS = 0.2159)
4) DY = 4.14% (Dividend 2012: 7 sen)
5) NTA = 2.02
(Extracted from annual report 30 Sept 2012)

Company's principal activities are trading & services and property development. It distributes home appliances and healthcare devices like Elba, Tuscani, Faber, Omron, etc. Saw its office in Kepong when I passed by Desa Parkcity last week, then found this stock recommended by another blog.

Posted by kcchongnz > 2013-07-17 06:23 | Report Abuse

Kia ora - A&M Realty Bhd
Posted by leviathan > Jul 16, 2013 04:36 PM | Report Abuse

Another property development and construction company? I never read anything about their land bank, development plan, location, niche etc. Its Kota Kemuning projects seem to be doing well recently.

Looking at its financial statement also doesn't excite me; No growth. I does have a healthy balance sheet, cash rich, and profit from its business. So I have to look at it if it is a cheap stock to invest by using ColdEye's 5 yardsticks.

ColdEye 5 yardsticks
A&M 1.130
1 ROE 5.2% No
Net profit 27133
Equity 516927
2 Cash flows, average
CFFO 20009 <28600 No
FCF 15674 OK
3 PE ratio 15.2 >10 No
Price 1.130
EPS 0.0743
4 Dividend yield
Dividend , sen 0.00
Dividend yield 0.0% <3.5% No
5 Price/NTA 0.80 <1.0 Yes
NTA 1.416

As I have said, nothing excites me. It has low ROE but selling not cheap at all at a PE of 15. Besides never distribute any dividend for the last few years already. Do this realty really has so much cash ah? If so who get the benefit of the cash?

Posted by kcchongnz > 2013-07-17 08:23 | Report Abuse

OKA ok?

Posted by hng33 > Jul 16, 2013 05:44 PM | Report Abuse
How about OKA, EPS= 9.3sen, NTA= RM 1.63, Dividend 3.5sen TE, yield at 5.5% nett

OKA Corporation Berhad is engaged in the manufacture and sale of pre-cast concrete products and ready-mixed concrete, trading of ready-mixed concrete, construction and provision of transportation, and other related services.

From the business of OKA, I can’t picture OKA as a great company. Its business is in a problematic and competitive environment. It is highly subjected to the cyclical nature of the construction industry. Net profit margin is thin between 4-5%. Inflation often adversely affect its bottom line. Bad debts and construction disputes in this industry is common.

OKA does have some decent stable earnings for the last 5 years of 5-8 m. It pays regular dividends of 3-4 sen. Last year 3.5 sen of dividend was distributed. At a price of 63.5 sen at the close of 16/7/13, the dividend yield is quite attractive. However, as I have mentioned before, research shows there is no statistical evidence to show that high dividend stocks provide high total return. OKA’s past years share price has shown that it is not an exception. So whether OKA is worth investing, may be it should be best evaluated using ColdEye’s five yardsticks.

1 ROE No 5.8% <12%
ROIC No 5.5% <WACC
2 PE ratio Yes 6.7 <20
EY (Ebit/Ev) Yes 17% >10%
3 Cash flow
CFFO Yes CFFO/NI 210%
FCF No Usually negative
4 Dividend yield Yes 5.5% >3.5%
5 P/B Yes 0.4 <2.0

The evaluation shows that it is a mix results. The operating numbers are not encouraging with ROE and ROIC less than 6%, or way below the costs of capitals. CFFO is good but it requires a lot of cash for capital expenses and hence there is generally no free cash flow except for last year.

The good parts are its high dividend yield, and low valuation with PE ratio of less than 7, earnings yield (Ebit/EV) of 17%, and a price-to-book value of 0.4.

High dividend is not sustainable if there is persistently no FCF because only from FCF there is money to distribute dividends without keep on borrowing. Do you notice that the short-term borrowing of OKA is increasing each year from 2006 until 2012? Is that a good way to distribute dividend?

For me, I place much more emphasize on operating numbers such as ROIC and free cash flow. Hence OKA doesn’t suit my taste of investment.

Posted by hng33 > 2013-07-17 08:42 | Report Abuse

kcchongnz

Thanks for your analysis.

Posted by hng33 > 2013-07-17 09:06 | Report Abuse

OKA high dividend yield of 5.5% nett is still attractive income. Its NTA of RM 1.63 also limit downside risk

Posted by datuk > 2013-07-17 09:52 | Report Abuse

Steel sector is due for new valuation due to:


1) Strong demand from the ETP plan.

ii) GM will be improved substantially as a result of a lower raw material cost.



The best thing is this new development is yet to be surfaced in the financial result. Thus, the gap in current price and future earning provide enough room for revaluation.

I expect the steel would be the next thematic play not too far from the Qtr 4 2013....

Posted by ipomember > 2013-07-17 10:08 | Report Abuse

datuk, can you provide some example of steel companies? thanks.

Posted by datuk > 2013-07-17 10:11 | Report Abuse

Lion land, cs steel, perwaja, kinsteel........

Posted by ipomember > 2013-07-17 10:14 | Report Abuse

who is the leader in this industry?

Posted by datuk > 2013-07-17 10:17 | Report Abuse

It depend the type of steel ...hot or cold product....

Posted by mlg123 > 2013-07-17 10:28 | Report Abuse

if you are looking for safe flat steel stocks to invest, i think csc steel will be the best. balance sheet is strong and quite generous on dividend, even though they had a policy of paying not less than 50% of their net eps as dividend last year dividend was 100% of their net eps which was 7 sen.
their 1Q2013 earning was impressive which was more than 50% of their whole year profit of 2012. if they can maintain this, then investor can expect
1) good dividend for next year
2) capital gain

the problem is steel industries is still on down cycle mode like shipping., maybulk. investors need the patience for the next steel cycle to come.
based on their 2012 annual report, another catalyst will be their bio-coal fuel project which if successful will be earning enhancing.

Posted by ipomember > 2013-07-17 10:37 | Report Abuse

other than steel price, what others indicators are important to gauge the performance? Thanks everyone

Posted by datuk > 2013-07-17 11:47 | Report Abuse

William cheng, William cheng........lu ho ser lioa!!!!

Posted by kcchongnz > 2013-07-17 13:02 | Report Abuse

so what about Fiamma?
Posted by Avocado_C > Jul 17, 2013 12:08 AM | Report Abuse
What about- FIAMMA (Not KFIMA)?
1) ROE = 10.3% (Profit: 26.9m, Equity: 260.9m)
2) CFFO = 12.6m
FCF = 11m
3) PE ratio = 7.83 (Price @ 16 Jul: 1.69, EPS = 0.2159)
4) DY = 4.14% (Dividend 2012: 7 sen)
5) NTA = 2.02

Looking at the metrics you have computed. Here are my comments:

Fiamma doesn't appear to be a great company to me with ok lah ROE of 10.3%, less than my minimum requirement of 12%. That also depend on how clean is its balance sheet. If it has a lot of debts, I may want a ROE of at least 15% because of its riskiness.

The quality of its earnings is not good with CFFO/NI less than 50%. It should be around 100%.

However, FIAMMA may qualify as a value stock because of its low PE, low P/B and high dividend yield.

Posted by Steve Jub > 2013-07-17 13:22 | Report Abuse

kcchong, i notice that most of the bluechips counters PE are quite high (above 15). Is it because their are bluechips counters, the mega investors still take the risk to invest into those bluechips even though the PE is higher than 15?

Posted by kcchongnz > 2013-07-17 13:33 | Report Abuse

steve, look at this way. For blue chips:

(1) Every investor wants to invest in a safe counter
(2) Most analysts cover blue chips
(3) almost all unit trusts and institutional investors own blue chips
(4) Overseas investors wishing to invest in Malaysia as they have to depend on analyst reports, and they have so much fund that only stocks they are able to invest without causing a big impact of their share price.

So that is why blue chips are usually fully valued. A blue chip with good growth potential (>5%) may not be too expensive at a PE of 15, or even 20. And I don't think it is risky to invest in blue chips at a PE of 15-30. This is because they have established business and their cash flows are more certain.

Posted by nicholes > 2013-07-17 13:39 | Report Abuse

how about poly?

Posted by Avocado_C > 2013-07-17 14:03 | Report Abuse

KCChong, thanks for sharing your view. What is your threshold for "a lot of debts"? FIAMMA's debt/equity ratio is 0.33 (total liablities/equity), is this low or high or average?

What is your interpretation of "value" stock? Meaning?

Posted by datuk > 2013-07-17 14:11 | Report Abuse

In my opinion, the timing to label blue chip stock as hidden gems is not only inaccurate but misleading to a certain extent. The reasons as below:

I) the current price has reflected of their value; ranging from 15X-25X. Not much room left for the shining star .....to do well.

ii) the potential for earning growth is limited and thus increase the risk in the investment.

iii) The current bull cycle is heading toward the end cycle (started from 2009 -2013).

Posted by Steve Jub > 2013-07-17 14:16 | Report Abuse

kcchong, make sense also what u said...looks like investing into bluechips is some kind of "FD" stocks for them...won't go down and won't go much too much...slow and steady but going up in long term like unit trust also since portfolio/risk spread more...

Posted by kcchongnz > 2013-07-17 14:34 | Report Abuse

Posted by Avocado_C > Jul 17, 2013 02:03 PM | Report Abuse
KCChong, thanks for sharing your view. What is your threshold for "a lot of debts"? FIAMMA's debt/equity ratio is 0.33 (total liablities/equity), is this low or high or average?
What is your interpretation of "value" stock? Meaning?

There is no threshold of how much debts a company should limit itself to. In a capitalist market, most companies borrow certain amount of money for their business. Important thing is the company must have adequate earnings or enough stable cash flows to pay interest of its debts. If say the cash flow coverage is good (ie, CFFO/interest>5), there is no issue of how much the debts the company has. Notice that blue chip companies like BAT, Nestle, Digi, Berjaya Toto etc carry huge amount of debts? Do you think they are likely to go bankrupt?

But for companies which don't earn much and no good cash flows, a total debt to equity ratio of 1 can be too highly geared and risky. I am sure you can find quite a number of this type of company.

Value stock for me I mean cheap stock in term of PE, Earnings yield, high dividend yield, low price-to-book etc, but with some restrictions, eg, must have a minimum growth of beating inflation, not too much geared, a certain cash flows, certain minimum ROE etc. I have been talking a lot about value stocks, haven't I?

Posted by Hustle > 2013-07-17 14:35 | Report Abuse

Hi kcchongnz what is your personal opinion about this CSL?

Posted by Ben8888 > 2013-07-17 14:35 | Report Abuse

Has anyone heard bout Vodafone buying a stake in both Maxis and Time Dot com?

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

Hustle, I would avoid all Chinese based companies. Guaranteed financial shenanigans.

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

Need to confirm with Cheung Kong Holdings Ltd 1st hehe

Posted by Hustle > 2013-07-17 14:39 | Report Abuse

Yup agree with you kc,it just look too perfect but highly poison.Thanks Bro.

Posted by TeckChuan Lee > 2013-07-18 08:14 | Report Abuse

Is MAXWELL a local or chinese based company??

MAXWELL Quoted RM0.305 today.

I did it s financial. Not bad at all. A young company, only 4 years of financial history.

1. ROE 20% (higher for previous years)
2. NTA 0.95
3. Free cash flow, though CFFO is lesser than NI.
4. Dividend 0.02
5. Piotroski average 5.33 for 3 years. (a bit less though)

Posted by j harcharanjit a/l jalaur singh dhillon > 2013-07-18 08:18 | Report Abuse

which are the good ones but still LAGGING???

Posted by j harcharanjit a/l jalaur singh dhillon > 2013-07-18 08:20 | Report Abuse

since government is curbing property sector.. so is propery equities a good buy or we have to be SELECTIVE?? and what are the picks

Posted by Steve Jub > 2013-07-18 16:52 | Report Abuse

kcchong, when the stock has reached fair value, you will start to sell your stock or continue to keep?

Posted by Steve Jub > 2013-07-18 16:53 | Report Abuse

the dilemma is once sold, duno what to buy when can't find undervalue stock..

Posted by Najib Zamry > 2013-07-18 17:02 | Report Abuse

Take a look at Halex Holdings. NTA 0.92, P/E 10 and sitting at net cash RM16 million. The wonderful thing is that the major shareholders are accumulating aggressively in the open since end of June 2013.

The negative point is the stock is very illiquid.

KC Chong what is your view?