Posted by kcchongnz > 2013-03-25 19:07 | Report Abuse

iafx, don't make general statements. Let you chose a company, any company, and we will share and discuss its financial statements here: Over to you.

Posted by kcchongnz > 2013-03-26 05:21 | Report Abuse

Posted by iafx > Mar 25, 2013 08:54 PM | Report Abuse
investopedia is fine: http://www.investopedia.com/terms/r/returnonequity.asp
read it 4 yrself is the best!

Oh I see, somebody is learning from Investopedia now. It is a good sign. At least now he doesn't simply say things now and have to rely on facts (but still no figures yet), or is it facts or some obscure statements? He asked you to read it for yourself because he doesn't want to slap himself for copy and paste from all over the internet. These are what he confidently said now.

Posted by iafx > Mar 25, 2013 01:30 PM | Report Abuse
sigh, don't mix up owner equity to shareholder equity, wrong roe calculation can lead to Holland... of cos, not for those with "agenda"

And the following statement and his "hint" which made me one head full of dew water:
Posted by iafx > Mar 25, 2013 03:10 PM | Report Abuse
understand first r u a common share holder, or owner of the company? should the answer is obvious, so is the inappropriate use of e=a-l above

And confidently said what I have said is flaw and that I tried to cover my ass as below:
Posted by iafx > Mar 25, 2013 06:06 PM | Report Abuse
house, u can find the correct def & use of roe with the trading tools, e.g equities tracker etc.
believe it or not, the above is flaw. a hint already given: total shareholders funds, some study u will find out the truth. already, he is using yr words to cover his ass

Anyway let examine the link he provided and try to clear the dew water from our heads. I copy and paste (never mind lah, copy and paste but give the source of it amh) what is provided by his link.

Investopedia:[ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder's Equity
Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares.]

Wah, somebody has become so intellectual now, Equity is not equal to assets less liabilities, and ROE is not Net income/Equity (the equation gives looks like return of total assets to him from his previous post). Oh because of the terms shareholder's equity (not just equity), preferred stocks and dividend to preferred stocks in the link.

Hey have you done enough homework or not? Do you know what is preferred stocks? How many companies in Bursa have preferred stocks, if any? Go and Google again. I give you time to do all these and then come back and tell us what you know about equity, ROE. Put in your argument properly, even though you copy and paste, it is ok. Don't hint here hint there, nobody knows what you are hinting. Hey we are not mind readers you know.

Posted by kcchongnz > 2013-03-26 12:16 | Report Abuse

Well if iafx doesn't want to share finance and investment here with me, anyone interested? We treat this as sharing of financial statement interpretation and analysis, a forum to share and learn from each other. May be this can enhance our investment experience.

Posted by houseofordos > 2013-03-26 12:51 | Report Abuse

Lets discuss about financial health assessment, when we look at the finacials , a few ratios that come to mind is the D/E and the current ratio (ability to service the current liabilites). We generally look for companies that have 0 or less than 0.5 D/E as good financial health indicator. Yet, if you look in the market today, there are many blue chip counters like BAT, YTL which has very high D/E ratio but yet manage to gain institutional interest. What makes these counters still attractive even though their debt is sky high ?

Posted by kcchongnz > 2013-03-26 13:03 | Report Abuse

houseofordos, good points. Different people look at different things. For example, to examine if a company is risky or not, you look at D/E, current ratio, quick ratio etc. Yes, they tell you the financial health of the company. For me, corporation makes more money by using borrowings because nowadays debt is cheap. If you look at the cost of debt for YTL, it appears that their cost of debt is even less than 1%. They are able to issue debts to overseas investors at low cost, for example Japan, US Europe where interest rate is less than 1%.

The risk of a company is more depend on whether it has enough cash flows to pay for its interest charges. For stable companies in utilities, gaming, consumer giants etc, they have cash flow from operations of many times the annual interest payment. In fact, there have so much free cash flows to distribute to investors as dividends. That is why institution investors love them. Go check this fact.

Posted by kcchongnz > 2013-03-27 10:56 | Report Abuse

Posted by iafx > Mar 27, 2013 09:27 AM | Report Abuse

make no mistake, shareholders equity is NOT equal to Assets - Liabilities! :)

Posted by kcchongnz > 2013-03-27 10:58 | Report Abuse

Posted by iafx > Mar 27, 2013 10:37 AM | Report Abuse

hahahahahaaaaa... bro, quickly go and open a roti-canai shop!! since day 1 already warned that yr statement is FLAWED

google? hhahaa..., if want to embarrass u, could have put this info in yr "specially created for argument" thread

there r many similar flaws in yr many "undisputable posts", no worry, should these posts r "too much", will knock on yr head to wake u up

hhahahaaa...

Posted by kcchongnz > 2013-03-27 11:10 | Report Abuse

[In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists. In an accounting context, Shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock.] Wikipedia

It doesn't mean everything Wikipedia says is correct but for this very simple accounting concept, of course Wiki won't go wrong.

It means clearly equity=assets-liabilities

When there is no preferred shareholders, as in most if not all the companies in Bursa, common shareholders equity (or just equity) are the only shareholder or stockholder equity.

Posted by kcchongnz > 2013-03-28 12:30 | Report Abuse

Posted by iafx > Mar 28, 2013 12:16 PM | Report Abuse
now become "the equity of the year is taken as the average of equity beginning and end of the year"... my goodness!

That is right, here I used the average of the beginning and the end equity. For equity for calculation of ROE, some use end of year and some use just the beginning of the year, and some do like I do here. There are all not wrong. I can also tell you the merits of which one to use. There is a valid reason I used the average here. If you want to know I can tell you why.

Btw, it is good you follow me everywhere. Trust me, you will learn a lot about finance and investment by following me. But please for heaven sake, don't be a bloody fool to ridicule me; because you do not know enough to do that, and you are just making a fool of yourself.

Posted by kcchongnz > 2013-04-01 10:52 | Report Abuse

Posted by iafx > Apr 1, 2013 10:23 AM | Report Abuse
siapa tipu-curi, siapa rasa pedas!! :D :D :D

Hey ifax, lets don't disturb others. Lets rant and rave here. Of course about finance and investment, not talking cock. We will see "siapa tipu-curi" as mentioned by you so many times. Come on show your LP here!

Posted by kcchongnz > 2013-07-12 15:37 | Report Abuse

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

Posted by kcchongnz > 2013-07-12 15:44 | Report Abuse

So what is ROE? Let's start with the very basic of investment, ok?

Wait before that what is the E in ROE?

How is the E obtained? Just tell you that it is obtained from the balance sheet, ok. But how is the E obtained from balance sheet?

Then what is the R in ROE? But the way do you know what O stands for?

Don't copy and paste link and expect people to guess, ok?

You must put it in your own words. If not no marks is awarded, ok?

Posted by kcchongnz > 2013-07-12 20:16 | Report Abuse

aisay no response one, no fun one.

Can I make use of this thread to guide those new to financial statement analysis and interpretations here. Free of charge. And prove that I don't bullshit one.

Anyone interested? Any question?

Posted by moven00 > 2013-07-13 23:05 | Report Abuse

Bro kcchongnz,

my humble to ask you on ROE....

ROE formula is ROE = Net Income/ Shareholders Equity

My question here is Shareholders Equity izzit the total number of shares for the company? Pls correct me if I am wrong.

Thanks

Posted by fatinvest > 2013-07-13 23:09 | Report Abuse

kcchong, 上课了。。。。。

Posted by inwest88 > 2013-07-13 23:28 | Report Abuse

Mr kcchingnam whilst i agree with u that the share price of a company depend on its performance and financials, this is not the case here. It all depends on goreng and speculation !

Posted by kcchongnz > 2013-07-14 08:29 | Report Abuse

Posted by moven00 > Jul 13, 2013 11:05 PM | Report Abuse
Bro kcchongnz,
my humble to ask you on ROE....
ROE formula is ROE = Net Income/ Shareholders Equity
My question here is Shareholders Equity izzit the total number of shares for the company? Pls correct me if I am wrong.
Thanks

The R is the net income attributed to the common shareholders (exclude any minority interest if any). So shareholders equity should be the total common equity under the "Equity" section of the balance sheet(not including minority interest), not the number of shares.

Posted by TeckChuan Lee > 2013-07-14 09:57 | Report Abuse

Of all the 1000 plus counters of KLSE, how do you know which of the counters fits all you requirements?

Where to begin with? is there a basic screening process that you do? such as low pe ratio or high eps?

Posted by kcchongnz > 2013-07-14 10:02 | Report Abuse

Posted by inwest88 > Jul 13, 2013 11:28 PM | Report Abuse
Mr kcchingnam whilst i agree with u that the share price of a company depend on its performance and financials, this is not the case here. It all depends on goreng and speculation !

Good good good. Next time you got news of who going to goreng which share, let me (kcchongnz, not kcchingnam) know so that I wallop it. But make sure you let me know much early, ok?

On the other hand, what I am talking about is the company business, not its share price. I never talk about share price, not unless I compare with the intrinsic value of its business. Business first, then may be share price. Of course call warrants is entirely a different ball game. Hope you separate the two different things.

Posted by kcchongnz > 2013-07-14 10:23 | Report Abuse

Posted by TeckChuan Lee > Jul 14, 2013 09:57 AM | Report Abuse

Of all the 1000 plus counters of KLSE, how do you know which of the counters fits all you requirements?

Where to begin with? is there a basic screening process that you do? such as low pe ratio or high eps?


I got a lot of ideas from forumers in i3. When they asked me or suggested some stocks, I try to look up their financials from Bursa website. Then it they are interesting, I go ahead with some analysis with my spreadsheets.

Somebody suggested the following website to screen, I think it was houseofordos, I personally haven't use it yet. Must try it out one day. You can check it out.

http://www.klsepsp.com/p/financial-checker.html

Posted by tonylim > 2013-07-14 11:03 | Report Abuse

This site is a quick glance.
Quite accurate

Posted by moven00 > 2013-07-14 13:04 | Report Abuse

KCChongnz & TeckChuan Lee,

Thank you both bros. I am Really learning.....albeit not so smart but I am slowly improving.

Good days to both and hope more good bros willing to share and educate each other here.

Together We Build Our Retirement fund and progress....

Cheers

Posted by TeckChuan Lee > 2013-07-14 13:08 | Report Abuse

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

Posted by keanpoh > 2013-07-15 15:11 | Report Abuse

It is also important to not blindly look at the ROE number. One is advised to read the balance sheet and determine the debt to equity ratio. Sometimes, ROE can be very high but that is because the company is over-leveraged (borrowed heavily or has high liability compared to it's equity). For more info, one can google DuPont analysis where it breaks down the ROE into component to help one to analyse how the ROE number is made of.

ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)

Source: Investopedia (http://www.investopedia.com/terms/d/dupontanalysis.asp)

As the general formula says:
Asset = Liabilities + Equity
A company has 2 ways to fund its assets, either by liabilities or equity.
Liability = Other people's money (from bankers, bond holders, suppliers, etc)
Equity = Owner's money (shareholder's fund, or in other words, your invested money)

So, it is very important to learn how to read and understand the 3 financial statements, namely the Income Statement, Balance Sheet & Cash Flow Statements.

Posted by keanpoh > 2013-07-15 15:13 | Report Abuse

An example of stock with extremely high ROE due to low equity is DiGi.
Go download it's latest Balance Sheet and see how the high ROE is generated to help you understand this.

Posted by keanpoh > 2013-07-15 15:14 | Report Abuse

Hope the above explanation helps. :)

Posted by TeckChuan Lee > 2013-07-18 00:28 | Report Abuse

Is FABER good enough? 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?

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.