Posted by newbiestock > 2013-07-03 11:34 | Report Abuse

kcloh the chinese hater u are bak. talk stock ler not personal OK

Posted by newbiestock > 2013-07-03 11:35 | Report Abuse

fake sifus always maintaining their calls. what happened to puncak ler??? LOLZ fakes only poor fakes here

Posted by KC Loh > 2013-07-03 11:36 | Report Abuse

if my 11.32am post is not about stock, then you are the dumbest wannabe sifu i ever seen! didnt sleep last night waiting for me ka? LOL

Posted by sephiroth > 2013-07-03 11:36 | Report Abuse

newbistock/optimusprime/optimusrich/cheebai/sohhai67/duplicate jason80 should just relax in hellfire, enjoy fading bit by by bit to ash

Posted by newbiestock > 2013-07-03 11:36 | Report Abuse

i am jus asking ler what happened to puncak la sifus??? LOLZ

Posted by KC Loh > 2013-07-03 11:37 | Report Abuse

you can take my sifu title optikus so desperately wanted la! i was never interested to be one anyway! oh wait, same joker right? so desperate for validation, no more digging out old threads ka? hahahahahaha

Posted by KC Loh > 2013-07-03 11:40 | Report Abuse

need to do full dress rehearsal for your inauguration as sifu or not? hospital bahagia seems to do full packages for your kind, so i heard! cheap cheap price per share.... er... package i heard! hahahahahahaha

Posted by KC Loh > 2013-07-03 11:47 | Report Abuse

OMG hahahahahahahahaha.....i like the reply from hornydog!

http://klse.i3investor.com/servlets/forum/900302238.jsp?fp=3

i see the inauguration already begun yesterday! just before your other self fly to shanghai in private jet at 10pm from subang's everyones-a-VIP lounge!! hahahahahahaha

what drugs are they prescribing in hospital bahagia la? LOL

Posted by KC Loh > 2013-07-03 11:50 | Report Abuse

eh? now i have little bit of time for sub-mutt species, and they disappear! why la? little kids making me disappointed la!


LOL

Posted by KC Loh > 2013-07-03 11:53 | Report Abuse

OMG hahahahahaha

Posted by newbiestock > Jul 3, 2013 11:25 AM | Report Abuse
pathetic poor sifus should be banned from this site for being stupead!!!!! analyse maybank la PE low also what about cimb la. these are not gems ah??? ur hidden gems are like ur nuts will always be hidden. cheats all cheats kcloh kcchongnz ooi tek

Posted by KC Loh > 2013-07-03 11:55 | Report Abuse

what's the word again? maybank? stupead?

you are absolutely brilliant! 2X5 species hahahahahahahahahahahahaha

Posted by alx > 2013-07-03 15:23 | Report Abuse

Newbie, what did I told you last night. Hold on to your puncak ya, now you start to earn money to cover your previous losses. Dont worry, you will continue to do well

Posted by newbiestock > 2013-07-03 15:27 | Report Abuse

ya alx u were rite puncak not bad

Posted by kcchongnz > 2013-07-03 15:57 | Report Abuse

Is MYEG a good company? Is it too expensive at 1.63?

Posted by ipomember > Jul 3, 2013 10:01 AM | Report Abuse
Kcchong, i think myeg is a good company. But the P/E is high now. What P/E you willing to pay for this kind of company?

Myeg is definitely a good company in my book. There is good growth in its business.The twelve month trailing (ttm) results shows earnings and profit grew by 9% and 18% respectively. Margin is high at 44%. ROE is great at 24%. The quality of its earnings is good with CFFO 132% of net income; and plenty of free cash flows (28m). But is it a good investment? I mean is it worthwhile to buy at present price?

I agree with you. Myeg is too expensive. Its price at 1.63 is 31 (>25) times its ttm earnings and 7.2 (>2.5) times its book value.

Posted by inwest88 > 2013-07-03 15:59 | Report Abuse

But someone says they don't but stock below RM3 - only poor people do.

Posted by newbiestock > 2013-07-03 17:11 | Report Abuse

kc in kcloh and kcchoongnz stands for kuah chee !!! and these people advice on stocks !!hahahaha

Posted by newbiestock > 2013-07-03 17:12 | Report Abuse

those who know these kuah chees kcloh and kcchongnz are fake voice up ler. be brave to show these fakes they should not cheat people.

Posted by newbiestock > 2013-07-03 17:13 | Report Abuse

all the kuah chees kcloh and kcchongnz recomended stock going to crash then u wil all c ler

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

join me in one voice to ban the kuah chees kcloh and kcchongnz from this site so they dont misled people into their stewpead stocks

Posted by newbiestock > 2013-07-03 17:15 | Report Abuse

dat ooi tek fela is useless no point saying anything about him anywei

Posted by inwest88 > 2013-07-03 17:34 | Report Abuse

I think the moderator of this forum should ban those who voice personal attacks against others rather than discussing stock related issues. Alternatively we must not respond to these people. They will then gradually be faded out.

Posted by jester > 2013-07-03 17:43 | Report Abuse

Haha.. Newbiestock, there is a fine line between newbie and amateur.. But your level of thinking goes beyond that.

I don't know what to say. Do you really know what you are saying? sooo funnyyy la you~

Dear KcLoh, KcChongnz and others, please don't mind him. Obviously he's talking nonsense only..

Sorry newbiestock, but you are really.......

Posted by KC Loh > 2013-07-03 18:01 | Report Abuse

Tg Rambutan is making space for a new guest I heard! Lost money until absolute bonkers!

Posted by kcchongnz > 2013-07-03 18:47 | Report Abuse

Faber a good company to invest? I think so.

Posted by Jaack1 > Jul 3, 2013 11:25 AM | Report Abuse
Dear Mr KC Chong,
What is your view on FABER?
Tks/Rgds

Faber does appear to be having a good business. Good cash flows and healthy balance sheet with negligible debt now after 150m debts were paid off last year. ROE was good averaging 18.4% for the last two years.

At RM1.82 at the close of today’s market, PE ratio and price-to-book are at undemanding 6.1 and 1.3 respectively. Yes, Faber may be a good company to invest in.

Posted by Jaack1 > 2013-07-03 19:20 | Report Abuse

Dear Mr KC Chong,

Thanks for sharing.

Rgds

Posted by tonylim > 2013-07-03 20:02 | Report Abuse

Kcchong, how's your scientex doing.
Cabut or what?

Posted by KAHFIEHLAI > 2013-07-03 21:35 | Report Abuse

Bei Tak Han!!!!!

Silent Person like read and learn from everybody/anybody views here, and seldom give my word cos i am really a NEWBIESTOCK! Buy or sell, own decision. Win or lost, own fate.
Dear little brother newiestock, don't be like that la, be gentle a bit, no personal attack and all those #$$@&^%. As u mentioned,(u think lah) we the stupied fool people, u are the Smart ONE, then u should talk like smart & brillent person...unfortunately u WORDS reflected the other way round????
Again u keep on saying RM3.00 and above stocks, I also want to buy those "B shit" stocks (defintely a lot of people wish so..no me lah..cos no $$$.) u think everybody so RICH like u!
Please don't keep on showing u cleverness and muka orang kaya here. Also don't waste u time and energy here with POOR people... go to have a tea with those big guy elsewhere.
God bless u.
good9

Posted by gark > 2013-07-03 22:11 | Report Abuse

Why everyone thinks buying high priced stocks is rich?

Trick question. If you buy 1000 lots of rm 0.50 stock and 100 lots of rm 5, which one is more expensive? Or you buy 100000 lots of rm 0.05 stock then how?

Too many idiots ikan bilis abound, good for us to have anchovy feast...

Posted by inwest88 > 2013-07-03 22:15 | Report Abuse

Agree with with gark. Those people just do not know the real meaning of "rich".

Posted by tonylim > 2013-07-03 22:16 | Report Abuse

Gark. Lol
When I Bght marco warrant.. I lost count of the zeroes.

Can be tricky at times when typing in the order pad

Posted by Steve Jub > 2013-07-04 09:20 | Report Abuse

kcchong, what do u think of fitters? i check its fundamental is pretty good, profit keep earning but zero dividend. will u consider this type of stock?

Posted by Steve Jub > 2013-07-04 11:19 | Report Abuse

kcchong, when u stock pick, will u also categorize the stock as defensive stock type? i mean some stock are 'defensive' type ie consumer or utility stock...

Posted by kcchongnz > 2013-07-04 13:55 | Report Abuse

Do I like Fitters? Not really.

Posted by Steve Jub > Jul 4, 2013 09:20 AM | Report Abuse
kcchong, what do u think of fitters? i check its fundamental is pretty good, profit keep earning but zero dividend. will u consider this type of stock?

Fitters past year's performance appeared to be good with net profit improved by 17% to 27.5m. However that is not well with its revenue which actually declined by 8% to 410m. Return of invested capital and return of equity appears ok lah at 14% and 12.3% respectively.

However the Achilles’ heel is its very poor quality of earnings. CFFO is only 28% of net profit and no free cash flow last year.

At 72 sen, it appears to be cheap with PE ratio of 5.8, and price-to-book of less than 1.

So Fitters is not my kind of stock because of its poor cash flow. However, please don't follow me. Fitters could very well be a darling of the market in momentum play.

Posted by Steve Jub > 2013-07-04 15:56 | Report Abuse

kcchong, fitter no dividend also due to no free cash flow right?

Posted by kcchongnz > 2013-07-04 17:56 | Report Abuse

Each year Fitters receives cash from its fire fighting services etc from debtors. It has to pay out cash to creditors too, besides setting aside money for building up inventories etc. The net cash equals to cash inflows less cash outflows. Fitters net inflow of cash or CFFO is only 7.6m, although it claimed to make 28m profit. So where is the money?

More than 20m is hidden in increase in receivables to 119m now, money Fitters claimed others owe them but not paid yet.

Fitters needs to spend money each year to buy plant and equipment and other capital expenses. Last year 7.6m was spent for this purpose. So how much of the CFFO was left behind? Nothing, absolutely nothing. There is no free cash flow at all. So where to get money to pay dividend.

Interestingly Fitters spent about 14.5m to buy back its own shares. OMG, no money some more buy back share. Where did the money come from?

The money came from conversion of warrants, about 48m. 11m of it was used to pay down its long term debt.

Posted by Steve Jub > 2013-07-04 18:29 | Report Abuse

kcchong, wow thanks for this detail info. :)

Posted by Tipster > 2013-07-04 22:59 | Report Abuse

Kc, what about yeelee?? Care to comment??

Posted by kcchongnz > 2013-07-05 08:19 | Report Abuse

Tipster, my problem with Yee Lee is its low margin business, and not impressive asset turnover. This results in low return of invested capital. It has not much growth too. I would prefer to invest in a company with at least 10% ROIC. Here was my previous comments:

Posted by kcchongnz > May 26, 2013 01:16 PM | Report Abuse X
Is Yee Lee a great company? Is it a good investment?

Yee Lee has a durable business. It is trading at very attractive valuation too as shown below. My main problem is its very low margin and ROIC. So for me I will pass.

Good company?
Good governance Yes
Durable business Yes
Growth No
ROIC No 7% >WACC
Balance sheet Yes

Screens for investing
ROIC No
P/B Yes 0.7 <2.0
PE ratio Yes 8.8 <20

Posted by aaron69 > 2013-07-05 09:11 | Report Abuse

Kc,
Can you comment on CSCENIC?Noticed that it's dividend yield is very high with no debts as well.Does it fulfill your investing criteria?Thanx in advance.

Posted by kcchongnz > 2013-07-05 10:53 | Report Abuse

CSCENIC a hidden gem? Maybe, judge yourself from my comments below:

Posted by kcchongnz > Jun 19, 2013 12:58 PM | Report Abuse X
Is Classic Scenic a good company? Is it a good investment?

Posted by fookchng > Jun 18, 2013 06:04 PM | Report Abuse
Dear KC, have you studied on PESTECH and CLASSIC SCENIC BHD before? I am interested to know your valuation on them. Thanks.

No, I have not studied those stocks before you mentioned here. But since you ask, I will try to look into one of them. And since you ask in this thread which discusses about searching for a good company, i will give my opinion if this is a good company worthy of investing also, before I attempt my valuation here.

Classic Scenic is engaged in the manufacturing of wooden picture frame moldings, and wooden pallets. Operations are carried out in Malaysia, North America, Australia, Europe and other Asian countries.

The business appears to be boring, isn't it? But often a boring traditional business is a good business. It's business has a high net profit margin of about 20% and provides a return of 16% (>12%) of invested capital. The quality of its earnings is good. Free cash flow is abundant at 20% of revenue (>>5%) and 16% (>>5%) of invested capital. That is why it can distribute a high dividend of 9 sen, (DY=8.1% at RM1.11). The only shortcoming is its business is quite stagnant with not much growth at a CAGR of only 4% fro the last 7 years. It is not that bad though as it is still growing in tandem with the broad economy. Last year's growth in revenue of 19% was great. So I can certainly say CScenic is a good company.

At RM1.11, its PE ratio is 10 (<20), EV/Ebit=6.7 (<8) and price-to-book of 1.4 (<2). So it is not expensive and hence may offer investors a good investment.

CScenic's valuation is quite straight forward as its revenue and earnings are quite stable. Assuming CScenic continues to grow in tandem with the economy at 3%, CScenic at RM1.11 is already fully valued as shown below, unless its business can continue to grow at last year's rate for a few more years.

Revenue 62329
Ebit 14753 24%
less income tax -3388 23%
EBIT after tax 11366
Add average D&A 2738
Less average capex -5983
Normalized Ebit 8121
Cost of capital, R 10%
Growth rate 3%
Capitalized earnings=Ad Ebit/R 116007
Add cash 21724
EPV 137731
Number of shares 120500
EPV/share 1.14

Posted by aaron69 > 2013-07-05 11:58 | Report Abuse

Thanx,Kc.Appreciate the reply.

Posted by Steve Jub > 2013-07-05 12:04 | Report Abuse

kcchong, i went to check fitter's cash flow for FYE Dec 2012. i saw that their net cash is about RM32 million, not 'zero'...am i seeing the right thing?

Posted by kcchongnz > 2013-07-05 12:21 | Report Abuse

Steve, free cash flow (FCF)in a year is the hard cash left from the net cash flows from the operations after spending on capital expenses (capex). Net cash inflows less cash outflows is termed the cash flows from operations(CFFO). Capital expenses are expenses required to sustain the business, such as replacement of worn out plant and equipment, leasing of land etc. So CFFO-capex=FCF.

So can you see without FCF, a company has no money to pay down loan, do other investment, and pay dividend, unless it borrows more money from bank, or in Fitters case, used the money collected from conversion of warrants. So it is difficult for a company to survive without having any free cash flows for years.

FCF is not net cash in the balance sheet.

Posted by Steve Jub > 2013-07-05 13:26 | Report Abuse

kcchong, okay. so example for fitters, fcf = operating activities (11,606,000) - investing activities (3,995,000) = 7,611,000 right?

Posted by kcchongnz > 2013-07-05 14:17 | Report Abuse

steve, i don't know what figures those you use. They are not CFFO and capex of whichever year. Read my previous explanation of it which was based on the last financial statement ended 31/12/2013.

Free cash flow= cash flows from operations - capital expenses

CFFO from the cash flow statement (7636000). Capex is the purchase of property, plant and equipment (7563000)

So FCF =73,000 only

Posted by mrk2ca > 2013-07-05 14:42 | Report Abuse

KC, what is your opinion on PMetal?
Thanks.

Posted by keanpoh > 2013-07-05 15:03 | Report Abuse

Hi kcchongnz,

Can I know how do you calculate WACC (Weighted Average Cost of Capital)?

Also, on ROIC (Return on Invested Capital), can I know where do you get the numbers for Invested Capital?

Thanks for your enlightenment.

Posted by kcchongnz > 2013-07-05 16:36 | Report Abuse

Posted by kcchongnz > May 27, 2013 11:43 AM | Report Abuse X

Posted by Tan KW > May 26, 2013 07:05 PM | Report Abuse
@kcchongnz how you get the WACC? need to calculate by yourself?

If a company has 200m equity and 100m debts and the cost of equity you use say 12%, and after-tax cost of borrowings at 7%,

WACC=200/300*12%+100/300*7%=10.3%.

I use 12% as my required return for investing in a company with ok but not so good balance sheet and cash flow. If they have healthy balance sheet and excellent cash flow, I may use 10%.


Invested capital you have to compute yourself:

It is IC=fixed assets+receivables+inventories-payables

Return in ROIC is Ebit*(1-tax rate)/IC

Posted by kcchongnz > 2013-07-05 16:47 | Report Abuse

keanpoh, go to the link below and see my explanations of ROIC and why is it important.

http://klse.i3investor.com/servlets/forum/900285510.jsp

Posted by kcchongnz > 2013-07-05 17:01 | Report Abuse

Posted by mrk2ca > Jul 5, 2013 02:42 PM | Report Abuse
KC, what is your opinion on PMetal?
Thanks.

Posted by kcchongnz > Jun 17, 2013 03:16 PM | Report Abuse X
Posted by chengyee > Jun 16, 2013 07:04 PM | Report Abuse
Kcchongnz, have you done study on LBALUM and PMETAL before? Please share if you have. I am interested to know your valuation on them. Thanks.

No, I haven't before you mentioned here. In fact I don't know what this LBALUM is also. But since you asked, I have a look at P Metal.

I saw a "big Head Devil" here. PMetal has impressive projects in Sarawak, the huge aluminum smelting plant which is in full operation now, and a few huge operations in China. Appeared to be very impressive. However, after normalizing its earnings to just about 100m last year (this year doesn't appear to be better), its ROE is only about 7%, way below my required return of 15% for this company.

PMetal has an astronomical amount of debts, 2.6b against its equity of just 1.4b. So yearly interest payment alone is 108m last year. So Pmetal didn't even earn enough to pay interest payment alone! Worst of all, it has no positive cash flow at all from its operations for at least the last two years(mind you I am not taking about free cash flow). So how? I jsut wonder how Pmetal could pay 6 sen a share dividend last year???

Since you want my valuation, I just give a shot. I use a simple but very useful valuation method basing on its ROE. My requirement of return for this kind of financial is at least 15%. With a NTA of 2.52 per share, I value Pmetal equal to 7%/15%*2.52 or just RM1.20 per share, against its market price of RM2.52 now.