Posted by kcchongnz > 2013-07-18 06:01 | Report Abuse

Is FABER good enough, a Dupont analysis of its ROE?
Posted by TeckChuan Lee > Jul 18, 2013 12:28 AM | Report Abuse
GLC, no competitor, hospital service and properties development.
Good ROE. Free cash flow. Good and increasing NAT every year. Piotroski average up 5.83 only from 2007 to 2013. How do i print screen and put it here?

TeckChuan,
I commented on Faber before 2 weeks ago as below.
Faber (3/7/13)
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.


I would like to take this opportunity to discuss on investment here regarding keanpoh's posting above on the Dupont Analysis which is very useful to dissect and see where the ROE comes from:

Revenue, S 886280
Net Profit, NP 147434
Profit margin, PM 16.6%

Total asset, TA 958498
Asset turnover=Revenue/TA 0.92

Total Equity, TE 620310
Financial Leverage, L=TA/TE 1.55

ROE=NP/TE 23.8%
ROE=NM*TA*L= 16.6% X 0.92 X 1.55 = 23.8%

As you can see, the high ROE of Faber came mainly from the high net profit margin of 16.6% last year. Asset turnover is satisfactory at 0.92. The leverage of 1.55 is ok too. ROE will improve if any of the factors increases; for example if Faber has more business, AT will be higher and hence the ROE. If Faber borrows more money (with a limit in order not to subject it to the risk of bankruptcy), ie increases its leverage, ROE will also increase.

Posted by kcchongnz > 2013-07-20 11:35 | Report Abuse

Posted by iafx > Jul 19, 2013 08:12 PM | Report Abuse
my original comment is CLEARLY stated ABOVE all comments!! how to delete and still above kcchongnz's cmment?? kcchongnz is clearly once again pusing his cerita, anyone still wanna take her word seriously so be it

so call live in NZ? pui pui pui! one hell of sickening liar!


Hey how come you know I live (or not live) in NZ one? I only mentioned one or twice in one or two threads. Oh I just remember, you promised to vet through all my postings to see if i copy and paste, bullshit, pusing sini sana.

Hey I have posted 2000 posts now. Found any already? Please share!

Or you prefer to discuss about the basic balance sheet equation Total assets = total liabilities + total equity

Or what about Return of equity, ROE. Or ROIC?

Whatever, I am waiting.

Hey next time come to NZ, cannot "pui, pui pui" one. You get fined you know!

Posted by yeowyc > 2013-07-22 23:09 | Report Abuse

Hi kcchongnz & TeckChuan Lee,

I'm new in this forum and interested to learn FA. Hope both of you can guide me.

I try to calculate EAH ROE for financial year 2012.

Revenue,S 46015311
Net profit,NP 8867486
Profit margin,PM 19.27%

Total asset,TA 60841230
Asset turnover = S/TA 0.76

Total Equity ,TE 62119214
Financial Leverage, L=TA/TE 0.97

ROE = NP/TE 14.27%
ROE = PM*AT*L 14.20%

Is Total Equity = 62119214 correct? Kindly correct me if I'm wrong.
For a tech company, ROE = 14.20% is it good enough?


Kcchongnz,
I saw your post on EAH, poor cash flow.
I would like to know what is the impact if the company cash flow is poor.

Thanks

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

I first started this thread as a platform to "discuss" about finance and investment with a critic of mine for learning purpose. However, he never show up here. I am happy to discuss about investment with anybody here, hoping that I can learn from others too.

yeowyc, the numbers you used are slightly different from my numbers. Did you use the trailing twelve month results or the one I used for year ending 31/12/2012 from Bursa website? But it doesn't matter as the difference is insignificant. I always say in finance and investment, there is no need to be precise. There are too many subjective elements in financial statements, assumptions etc.

Your computations are all correct. I am surprised that you even used Dupont analysis, an excellent way to dissect the ROE of a company.

ROE of a company like EAH with little tangible asset of 14% is nothing to shout about. Asset light companies which assets are made up of intangible such human resources, brand, monopolies etc typically have very high ROE of 50%, 100%. Look at Berjaya toto, Jobstreet, Prestariang, etc.

EAH's CFFO is only 3.7m as compared to its earnings of 8.6m, or just 43%. The year before was horrific, just 8%. You say you have so much earnings, but where is the hard cash? Show me the cash! So what it earned was tied up in receivables, 33m in total, whether people really owe them or not, or if truly, when are they paying? Are they going to pay or not? Hey, you only earn 8.6m, and received hard cash of only 3.7m, and people owe you 33m! See the horror? Is this business done correctly or not?

So from the miserable amount of 3.7m, company needs money for capital expenses to grow its business, doesn't EAH?

3.1m was spent on R&D and purchase of PPE, only 600 thousand is left. The previous year, it has to find another 1.7m for capex. So got to find money somewhere and where got money to pay dividend, to pay down debts, or do some investments?

Posted by Hk Wong > 2013-07-23 06:22 | Report Abuse

Problem with Fabre is on the property earning which may drag them

Posted by yeowyc > 2013-07-25 00:13 | Report Abuse

Hi kcchongnz,

I'm using financial report end 2012 release on 6th June.

Kindly correct me which value I obtain wrong.

Thanks.

Posted by Jaack1 > 2013-07-25 09:28 | Report Abuse

Posted by TeckChuan Lee > Jul 14, 2013 01:08 PM | Report Abuse

the site is awesome....
http://www.klsepsp.com/p/financial-checker.html

Dear Mr TeckChuan Lee,

What is 'PSR'?

I am novice trying to learn - can you pls guide?

Tks/Rgds
Jaack1

Posted by kcchongnz > 2013-07-27 18:25 | Report Abuse

Posted by TeckChuan Lee > Jul 27, 2013 06:23 PM | Report Abuse
profession? lol. im a lorry salesman

Why do you lol? You are a lorry salesman, but you seem to learn accounting very fast.

Posted by kcchongnz > 2013-07-27 18:35 | Report Abuse

Now the first thing you need to do is to learn more accounting. Understand the three major parts of the financial statements, income statement, balance sheet and cash flows. The book I recommended to you I haven't read it yet, but it could be a little bit advance. Once you understand reading and interpreting financial statements, then you could go further in sporting financial shenanigans. That book "What's behind the number will be useful.

Reading is one thing. It also take quite some experience in investing to be able to become smarter in sporting frauds. I have paid a lot of tuition fees on that you know. I have lost some money before years ago when I know nothing much about investing. Worse still I thought I knew a lot.

I have posted some comments on companies like Ivory, KNM, GCB, London biscuits, Smartag, Amedia etc where I thought there is something not right about their financial statements. Search and read if you wish and see if you understand what I meant by financial shenanigans.

Posted by TeckChuan Lee > 2013-07-27 18:38 | Report Abuse

I find it very hard to understand financial statements. thats why i dug my head into it and learn.

Reports are the only means of info we have to evaluate a company right? what choices do we have other than studying reports.

As mr cold eye said, reading , understanding, data collection is a must for every sound investors. I strongly believe in that too.

And i still only understand part of your KFIMA template only. Still a long way to go. Im a novice and i just started buying TDM and Faber last month.

Posted by TeckChuan Lee > 2013-07-27 18:42 | Report Abuse

''Ivory, KNM, GCB, London biscuits, Smartag, Amedia'' noted and thanks again.

Posted by kcchongnz > 2013-07-27 19:16 | Report Abuse

Tech Chuan, some very good local investment website to follow to buy stocks and learn about investing. I think their recommendations are unlikely to bring you to Holland.

http://www.intellecpoint.com/
http://whereiszemoola.blogspot.co.nz/
http://www.stocks-unleashed.com/
http://blisswise.blogspot.co.nz/
http://cgmalaysia.blogspot.co.nz/
http://myinvestingnotes.blogspot.co.nz/

Posted by houseofordos > 2013-07-28 19:10 | Report Abuse

kc, what do you think about koon yew yin accumulating jaya tiasa .... read about it in Dali's blog... I dont think Jtiasa meets your criteria but just seeking some opinion...

Posted by kcchongnz > 2013-07-29 10:17 | Report Abuse

house, you are right. Jaya Tiasa is not a good company in my book. You know my criteria very well. Furthermore it is not cheap too. Refer to the Greenblatt's magic formula which I use often.

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

This stock was first recommended in Dali's blog a couple of years ago. Since then its price has dropped by tens of percent, mainly due to drop in palm oil price. Even then I don't think it is cheap as KYY said. I am not a fan of high growth projection and expectation because research have shown that this kind of rosy projections seldom materialized, or valuation using $/hectare, without considering how much debts a company carries, and hence its high enterprise value.

Of course i can't say he is wrong. Note that he becomes rich from investing mostly. Just a different investment style.

Posted by houseofordos > 2013-07-30 00:29 | Report Abuse

KC,

Is it normal for dividends paid to minority shareholders > dividends paid ?? I see thsi in Mega First investment cashflow statements from 2009 - 2012. How come dividends paid to minority is higher when net income attributable to minority < common shareholder ?

Year 2012 2011 2010 2009
Dividends paid (17,616) (14,490) (12,049) (9,602)
Dividends paid to minority shareholders (30,566) (23,385) (26,184) (12,941)

Posted by kcchongnz > 2013-07-30 04:55 | Report Abuse

house, when Mega First is a substantial shareholder of an associate company A, the account of A is "consolidated" into MFCB's financial statement. In A's account, its income statement, balance sheet and cash flow statement is "added" to MFCB's item by item.

So MFCB's subsidiary could be say a power plant in China. A probably pays a substantial part of its earnings to its shareholders. MFCB's dividend payout to its shareholders could have been relatively lower. Hence the minority shareholders of A could have enjoyed higher dividend than the shareholders of MFCB. You notice that most of MFCB's revenue and earnings come from power plant business?

This is my opinion as a non-professional. any accountant around to clarify?

Posted by houseofordos > 2013-07-30 07:34 | Report Abuse

thanks KC. yes that makes sense.

Posted by TeckChuan Lee > 2013-07-30 12:49 | Report Abuse

KC can you please explain to me whats the actual meaning and purpose of us calculating ROA, ROE, Current Ratio, EV/Ebit & EV/EbitDA??

Posted by kcchongnz > 2013-07-30 17:26 | Report Abuse

Posted by TeckChuan Lee > Jul 30, 2013 12:49 PM | Report Abuse
KC can you please explain to me whats the actual meaning and purpose of us calculating ROA, ROE, Current Ratio, EV/Ebit & EV/EbitDA??

In my language, buying a stock means investing as a part owner of a business. You put in say 10,000 (equity)in a business. What do you want on return of this money? Investing in a business is a high risk adventure. You could lose all your money. So for me I require a return of at least say 12% a year. So if the business only earns 500 for me a year, or a ROE of the business is only 5%, do you think I want to invest in it?

If you have invested 100,000 in the assets of this company, and the return is only 3000, or ROA, would you still want to invest in this company?

Current ratio=current asset/current liability. Current assets are assets which you can readily convert to cash and current liabilities are what you owe others in short term of less than a year. So if your current assets is less than current liabilities, or CA/CL<1, you face the risk of bankruptcy as you don't have readily available assets to convert to cash and pay your current liabilities when demanded.

EV is the enterprise value of a business which includes market value of shareholders equity and debts, less excess cash and other assets not consolidated in the financial statements of the company. Ebit is what the firm earns before interest and debts. So EV/Ebit measures market valuation of the enterprise. it is like PE ratio but PE ratio concerns only shareholders. You then can judge if if the stock is too expensive to buy.

EV/Ebitda is quite similar to EV/Ebitda except ebitda takes into consideration of non-cash item in depreciation and amortization.

You can easily goggle and there will be better and more detail explanations available.

Posted by kcchongnz > 2013-07-31 05:50 | Report Abuse

Posted by TeckChuan Lee > Jul 30, 2013 12:49 PM | Report Abuse
KC can you please explain to me whats the actual meaning and purpose of us calculating ROA, ROE, Current Ratio, EV/Ebit & EV/EbitDA??

TeckChuan, please read the posts at the top of each of the following threads where I try to explain the significance of some of the metrics for investment.

http://klse.i3investor.com/servlets/forum/900214344.jsp
http://klse.i3investor.com/servlets/forum/900285510.jsp

Posted by kcchongnz > 2013-07-31 17:20 | Report Abuse

Posted by ipomember > Jul 31, 2013 05:03 PM | Report Abuse
Hi kc, is investment in subsidiary considered as CAPEX?

No, capex is capital expenses on the ordinary business of the company. Investment in subsidiaries is an investment operation under the cash flow in investments of the cash flow statement.

In Kfima's case, from its CFFO, it spends certain amount in capex, such as buying biological assets, increase PPE. Then after spending on capex, what is left from CFFO is Free cash flow, or FCF. It is only from the money in FCF kfima has the money to invest in subsidiaries. Assuming that it doesn't touch its cash in its balance sheet.

Posted by TeckChuan Lee > 2013-07-31 18:02 | Report Abuse

thank you kc. these days we can hardly find any counters that are still cheap? Cold eye says, buy low, sell high. Is the 'buy low' period coming anytime soon?

Posted by yeowyc > 2013-08-05 12:36 | Report Abuse

KC,

Do you monitor Supermx?

Supermx lose around 56 million for Forex column for last quarter financial report due to strong MYR against USD.

But recently MYR drop alot against USD. Can we expect huge profit for Forex column for this quarterly report or next quarterly report?

Do you think recent upside price due to that reason?

Can this apply to other major exporter counters?

Correct me if I'm wrong


Kindly advised.

Posted by kcchongnz > 2013-08-05 13:25 | Report Abuse

yeowyc, it certainly looks like the weaker Ringgit has a positive effect on Supermax and other export oriented companies. Market participants often refer to exchange rate to trade on a export orientated company's stocks. Normally i don't pay attention to the exchange rate because currency goes up and down and it is really hard to predict the direction. For long term investing, I concentrate on the company's business more.

Posted by TeckChuan Lee > 2013-08-08 22:33 | Report Abuse

Dear KC
Questions

1. Quoted from your thread, 'In Search of Excellence'

'At the price of 48 sen now, Willow is trading at a PE ratio of just 7.7 (<20). Market Enterprise Value is only 4.6 times EBIT (<8). Price-to-book is only at 1.6 (<2). I would say a good company of Willow is selling very cheaply.'

Why do you use <8 as a guide for EV/Ebit?
Why do you use <2 for P/BV?

Just wondering how you set your limits when you value a company.


2. From annual reports where do you get the idea how much the directors are paid? from compensations and dividends? Total compensation/Revenue > 3%

Posted by TeckChuan Lee > 2013-08-09 03:00 | Report Abuse

Dear KC, NTPM 2012, the income statement states all sorts of expenses. To calculate EBIT, Im only leaving out 'other operating expenses' , 'finance cost' and tax only right?

Posted by kcchongnz > 2013-08-10 18:05 | Report Abuse

Posted by TeckChuan Lee > Aug 8, 2013 10:33 PM | Report Abuse
Dear KC
Questions
1. Quoted from your thread, 'In Search of Excellence'
'At the price of 48 sen now, Willow is trading at a PE ratio of just 7.7 (<20). Market Enterprise Value is only 4.6 times EBIT (<8). Price-to-book is only at 1.6 (<2). I would say a good company of Willow is selling very cheaply.'
Why do you use <8 as a guide for EV/Ebit?
Why do you use <2 for P/BV?
Just wondering how you set your limits when you value a company.

there are many investing strategies. the strategy here is looking for good companies and see if they are selling at reasonable price. Once you have decided that willow is a good company from its operating numbers such as high ROE and ROIC, good cash flows, then you want to know if it is trading at reasonable price. Don't expect to find good companies trading at cheap price, do you?

So a PE ratio of 7.7 isn't expensive. And EV 8 times of Ebit isn't expensive too. Inverting those ratios gives you an earnings yield of 12%-14%. This earnings yield compared to fixed deposit is good, isn't it? The benchmarks are just a guide and could be arbitrary, but don't you think they are logical.

Posted by kcchongnz > 2013-08-10 18:11 | Report Abuse

Posted by TeckChuan Lee > Aug 8, 2013 10:33 PM | Report Abuse
2. From annual reports where do you get the idea how much the directors are paid? from compensations and dividends? Total compensation/Revenue > 3%

Look at the remunerations for the directors, or directors' fees. This does not include dividends. Dividends are distributions to shareholders, though directors are also shareholders.

Posted by kcchongnz > 2013-08-10 18:22 | Report Abuse

Posted by TeckChuan Lee > Aug 9, 2013 03:00 AM | Report Abuse
Dear KC, NTPM 2012, the income statement states all sorts of expenses. To calculate EBIT, Im only leaving out 'other operating expenses' , 'finance cost' and tax only right?

Ebit is earnings before interest and tax. It is in fact "operating profit" in the income statement itself. You cannot leave out "other operating expenses". "finance cost" and tax is after Ebit which are left out.

Posted by TeckChuan Lee > 2013-08-11 02:11 | Report Abuse

Thanks a lot KC.

Do you mind to do a review on HUNZPTY?

1. EBIT, what is 'fair value adjustment', and is it included inside EBIT?

2. IC, 'investment properties' & 'properties dev. cost' , is it included in IC?

3. CAPEX, again is 'investment properties' included? since it is a properties development company.

Posted by TeckChuan Lee > 2013-08-11 02:54 | Report Abuse

From your KELADI post,

''The major shareholder Datuk Robert Wong or something owns a few smallish public listed companies and this man is notorious of share manipulation.''

Where do you get info like this?

Is there anyone else we should be aware of?

Posted by TeckChuan Lee > 2013-08-11 03:12 | Report Abuse

Can you refer to L&G FY2012 Footnote No.42

Realized and unrealized profits. Anything affecting our EBIT?

Posted by kcchongnz > 2013-08-11 08:28 | Report Abuse

Posted by TeckChuan Lee > Aug 11, 2013 02:11 AM | Report Abuse
Thanks a lot KC.
Do you mind to do a review on HUNZPTY?
1. EBIT, what is 'fair value adjustment', and is it included inside EBIT?

FAIR VALUE ADJUSTMENT IN WHAT? IF IT IS FAIR VALUE ADJUSTMENT TO THE VALUE OF A PROPERTY, THEN I DON'T TAKE AS PART OF EBIT BECAUSE IT IS ONE-TIME, NON-CASH AND HAS NO MEANING TO ME.

2. IC, 'investment properties' & 'properties dev. cost' , is it included in IC?

IF INCOME FROM INVESTMENT PROPERTIES IS PART OF OPERATING INCOME (MOST LIKELY IT IS), THEN IC WOULD INCLUDE THAT. PROPERTY DEV COST FOR PROPERTY COMPANY IS PART OF IC.

3. CAPEX, again is 'investment properties' included? since it is a properties development company.

IF THE ORDINARY BUSINESS OF A PROPERTY DEVELOPMENT COMPANY ALSO INCLUDE INVESTMENT INCOMES FROM INVESTMENT PROPERTIES SUCH AS FREQUENT BUYING AND SELLING OF INVESTMENT PROPERTIES, GETTING RENTAL INCOMES AS PART OF ITS OPERATING INCOME, THEN IT IS PART OF THE CAPEX. OFTEN IT IS NOT.

Posted by kcchongnz > 2013-08-11 08:30 | Report Abuse

Posted by TeckChuan Lee > Aug 11, 2013 02:54 AM | Report Abuse

From your KELADI post,

''The major shareholder Datuk Robert Wong or something owns a few smallish public listed companies and this man is notorious of share manipulation.''

Where do you get info like this?

Is there anyone else we should be aware of?

I READ SOMEBODY'S POSTING ON THIS BEFORE AND BELIEVE IN HIM. I DON'T KNOW EVERYTHING. I KNOW VERY LITTLE ABOUT THIS STUFF.

Posted by kcchongnz > 2013-08-11 08:32 | Report Abuse

Posted by TeckChuan Lee > Aug 11, 2013 03:12 AM | Report Abuse

Can you refer to L&G FY2012 Footnote No.42

Realized and unrealized profits. Anything affecting our EBIT?

WHEN YOU POST A QUESTION, BE SPECIFIC. I CAN'T READ EVERYTHING YOU ASK ME TO READ. AND I DON'T KNOW EVERYTHING.

Posted by TeckChuan Lee > 2013-08-11 09:15 | Report Abuse

THANK YOU AGAIN KC.

Posted by houseofordos > 2013-08-13 00:26 | Report Abuse

KC, a question on bonus issues from Pintaras. In Pintaras' balance sheet for 2012 I did not find any mention on treasury shares. I looked for share buyback notices in Bursa and also found none. Based on Pintaras share capital of RM80m, where is the bonus share coming from ?

Posted by tonylim > 2013-08-13 00:53 | Report Abuse

Bonus issues comes from "distributable reserves" in the company balance sheet as defined in the companies law

Posted by kcchongnz > 2013-08-13 05:09 | Report Abuse

Pintaras didn't have any mandate to buy back shares. Not sure if they have now from the shareholders. Hence there is no treasury shares in the equity portion of the balance sheet. The management may think that it is not appropriate to buy back its own shares when the stock is already illiquid. The major shareholder have been buying the shares if I am not wrong.

Bonus issues arises with the increase of shareholders' capital. In Pintaras's case, from 80m to 160m, and a corresponding decrease in "retained earnings", or "distributable reserves" in tonylim's term. Pintaras has 184m in "retained earnings". The equity remains unchanged. So do you see the so-called "benefits" in this bonus issue exercise? Pintaras can even give a 2 bonus shares for 1 share held if it wants. But what is the point?

Of course the point is once bonus issues is decided, investors start to chase the share price of the company. In Pintaras's case, it seems to serve the purpose of "unlocking" the value of the company.

Treasury shares are normally used for share dividend distribution exercise. It has nothing to do with the share capital, unless the treasury shares are cancelled off.

Posted by houseofordos > 2013-08-13 08:00 | Report Abuse

thanks both for the explanation

Posted by kcchongnz > 2013-08-13 20:52 | Report Abuse

Allow me to discuss something which this thread was originally created for with this iafx.

Posted by iafx > Jul 12, 2013 03:32 PM | Report Abuse
whenever si-tipu-roti-canai start to "punt" a counter with wonderful cerita, making formula here and there, that counter is sure to drop. now kps $1.66... tks to this taufu-fa again
don't believe? juz briefly follow his bogus posting and c for yourself. hahahaaa... can't even get the roe def correct, yet so shameless
time will tell, when market goes down all these taufu will disappear :D

iafx said that "whenever si-tipu-roti-canai start to "punt" a counter with wonderful cerita, making formula here and there, that counter is sure to drop."

Now I want to tell him that since January 21th this year when my original portfolio was posted by TanKW, the average return of all the stocks in my portfolio is now 42.3%, more than 4 times the market return of 9.7% of the same period as shown in Table 1 below. Not a single stock is in the negative territory, absolutely none.

I started with a new portfolio, together with OTB exactly two weeks ago. Thanks TanKW for compiling it. Now the return of the new portfolio is 11.4% as shown in Table 2 below, 10 times the return of KLSE of 1.2%. Again none of the stock selected is in the negative territory.

So what say you? Don't you think that you must withdraw you statement that "whenever si-tipu-roti-canai start to "punt" a counter with wonderful cerita, making formula here and there, that counter is sure to drop."

Table 1
Reference date 21/01/2013 13/08/2013
Stock Name Ref Price Price now Div rec Change %change
Kfima 2.02 2.11 0.080 0.170 8.4%
Pintaras 3.12 6.44 0.100 3.420 109.6%
ECS 1.06 1.17 0.025 0.135 12.7%
Plenitude 1.85 2.28 0.050 0.480 25.9%
Jobstreest 2.4 4.10 0.080 1.780 74.2%
Pantech 0.78 1.11 0.012 0.342 43.8%
SKPRes 0.34 0.34 0.000 0.000 0.0%
NTPM 0.47 0.58 0.015 0.125 26.5%
Kimlun 1.5 2.07 0.048 0.618 41.2%
Prestariang 1.21 2.13 0.055 0.975 80.6%
22.330 0.465 2.1%
Average return 42.3%

KLCI 1637 1795 158.0 9.7%


Table 2
New 13/08/2013
Pintaras 4.99 6.44 0.000 1.450 29.1%
Kfima 2.060 2.110 0.000 0.050 2.4%
MFCB 1.700 1.870 0.000 0.170 10.0%
Haio 2.670 2.790 0.000 0.120 4.5%
Fibon 0.330 0.395 0.000 0.065 19.7%
CBIP 2.830 2.910 0.000 0.080 2.8%


Average 11.4%

Posted by inwest88 > 2013-08-13 21:02 | Report Abuse

Fantastic returns from the stocks selected.

Posted by houseofordos > 2013-08-13 21:09 | Report Abuse

KC I ve been following your posts since Mar this year.z.. if I had not tried to time the market... I would be enjoying these kind of returns today... sigh... really lesson learnt...

Posted by kcchongnz > 2013-08-20 13:54 | Report Abuse

Let us learn from this "Guru" here'

Posted by iafx > Aug 20, 2013 12:35 PM | Report Abuse

"如果股市极端疯狂，给出高的离谱的价格，你还坚守长期投资不出售， 冷眼认为你就不是做股票投资的料子."

离谱的价格. COULD YOU TEACH US WHAT IS 离谱的价格? WHAT KIND OF METRICS DO YOU USE TO JUDGE THAT? WHAT VALUATION METHODS DO YOU USE TO DETERMINE THAT THE PRICE IS 离谱的价格. WHAT COMPARATIVE VALUATIONS DO YOU SUE, WHICH COMPANIES YOU USER TO COMPARE AND WHAT METRICS?

if u would have acted correctly after the first comment above; rather than psycho by long "beautiful" cerita, excited by "massage" numbers, CONGRATULATE to u!! now u can sit back relax and slowly buy back at low price if u will, or use the good $$$ to sapu even better counters :D :D :D

YOUR FIRST COMMENTS 6 MONTHS AGO WAS PINTARAS TOO EXPENSIVE AT RM2.70 AND YOU ADVISE EVERYONE TO SELL. WHY YOU "PHYCHO" AH> SOLD TOO EARLY AT RM2.70? "MASSAGE NUMBERS", WHO MASAGE? WHICH NUMBER? SAPU WHICH COUNTERS? PLEASE ALSO TELL US WHICH AND WHY SAPU? I MEAN HOW TO YOU JUDGE WHICH TO SAPU.

HahhahaHahaahahhahaaaaa.... argued with ghost story? HAhahahHAHAHAhaa..

WHY SO HAPPY AH? HAVE YOU SWORN THAT YOU WERE NOT THE GHOST WHICH CHANGED THE WORD "REVENUE" TO "PROFIT" IN THE KFIMA THREAD? IF NOT, PLEASE SWEAR HERE.

Posted by riley022 > 2013-08-20 14:18 | Report Abuse

I notice only here some investment opportunity but seem quite have a risk.Well speaking of risk management in Finland country many investor are really managing through http://www.safehouse.fi/ and i notice in that country that managing the risk has a lot of benefits.

Posted by kcchongnz > 2013-11-20 11:40 | Report Abuse

I set up this thread 8 months ago with the intention of discussing with this iafx fellow about finance and investment. However this guy never have the guts to come here to have some intelligent discussions. Instead he went everywhere making a fool of himself. How time flies.

Later we used this thread as a discussion forum for some investment concepts, financial statement analysis etc. There were quite some good discussions here. Too bad it has been a long time nobody visits here already. Can I revive it for the benefits of most of us.

Ok now let's discuss about Graham net net valuation. Tan KW has posted a good article about it here:

http://klse.i3investor.com/blogs/kianweiaritcles/38350.jsp

I have tried to use this method to value PM Corp, a cash rich company with little significant business.

Somebody by the name iafx said I bias, dishonest, tipu etc. Why trying to do something like that is considered as such? Let us discuss. Here is my post:

Posted by kcchongnz > Nov 19, 2013 06:50 PM | Report Abuse X

This interim result confirms the profit of 22m from the sale of property mentioned by calvin earlier on. However, the performance of the chocolate business remains illusive. Without this one off gain from the disposal of property, there will be no profit from the ordinary business. When is its chocolate business going to show some good results?

However, from this interim result, it reinforces my commitment in investing in this stock. This is due to further strengthening of its balance sheet. The Graham net net valuation (as below) shows that its intrinsic value is about 30 sen per share, up from my 24 sen previously. This is due to the realization of its gain in the sale of the property. If what calvin said about its other undervalued assets is true, further unlocking of the value of the assets of PMCorp will strength its case more as a good investment.

PMCorp 30/9/13 BS Amount Weight Net-net
Cash and equivalent 139616 100% 139616
Investments 82275 100% 82275
Receivables 21150 75% 15863
Inventories 16663 50% 8332
PPE 31472 0% 0
Goodwill 63190 0% 0
Other assets 1451 0% 0
Total assets 355817 x 246085
Less totalliabilities -18695 100% -18695
Equity 337122 x 227390

Number of shares 773356 x 773356
NAB 0.480 x 0.294
NTA 0.354 x 0.294

Posted by kcchongnz > 2013-11-20 12:45 | Report Abuse

This guy made some comments here and said I am dishonest and tipu for posting the above. And then he came with the following post. I was talking about an asset based valuation of Graham net net and he came with this thingy here about an investment strategy.

Totally "cow head not fitting the horse mouth"!

Please clarify if you know what is a asset based valuation liike Graham net net and a multi facet investment strategy, like the 5 yardsticks of Cold Eye.

By the way, please do not degrade a master like Cold Eye with your 5 chopsticks.


Posted by iafx > Nov 20, 2013 11:57 AM | Report Abuse

don't talk only, use the *famous 5 chop (or yard?) sticks or FCF to scrutinize this counter, download the latest qtr report, see how cash is generated, see page 8 performance review. see for yourself if there is BIAS and DISHONEST.

note this counter is related to troubled pmind, too. this is not a buy/sell call, pmcorp price still green as v speak, this is merely sharing a neutral view, yr $ yr choice!!

Posted by AyamTua > 2013-11-20 12:49 | Report Abuse

kcchongnz is the most undisputed reputable pro here in fundamental stock picking he even spent time consistenly making good posts for all to read.. among few of his analysis covers the following good fundamental stocks

1. Hexza (Chemical)
2. Homeritz (Furniture)
3. PMCorp (Chocolate)

all are sound, investment grade fundamentals counters. I invested in these I can sleep soundly.

Posted by inwest88 > 2013-11-20 12:52 | Report Abuse

# Ayam Tua - you missed many others picked by him - Pintaras, Datasonic, Fibon etc. All prices went up sharply. You can his from his stock challenge block !

Posted by inwest88 > 2013-11-20 12:56 | Report Abuse

# Ayam Tua - just see for yourself :-

http://klse.i3investor.com/blogs/stock_pick_challenge_2013_2h/blidx.jsp