Koon Yew Yin's Blog
VS is My Largest Investment - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 27 Jun 2015, 10:40 PM
Koon Yew Yin
0 1,450
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
As you know I have been trying to teach people how to make money from the stock market for a long time. I hope many of you have bought VS which has gone up from Rm 1.60 to above Rm 4.70 in the last 12 months.
If you look at Bursa company announcement, you will see that on 15th June 2015, I submitted Form 29A as a substantial shareholder. VS is my largest investment. Those who have followed my advice would have bought and they should be happy.
Statistics shows that majority of Fund managers, CFA and accountants cannot beat the stock index. The reason is that they rely too much on audited accounts which is a historical record. For example they would not buy VS because it has increased borrowing and it has poor cash flow.
As a business man, I can understand the necessity to borrow more money to do more business. As a result, cash flow will automatically be poor because of the increased shipment of goods. Moreover, almost all buyers would want delayed payment terms of 90 or more days.
I am not an accountant. I select stocks like a businessman who is looking at the future business of the company. This is an extract from Bursa showing VS’s 3rd quarter result. Please note that Its profit has increased from Rm 17.135 million for 3 quarters of last year to Rm 80.036 million for 3 quarters of the current year.
Please note that earning per share is the most essential catalyst to move share prices. NTA or companies without borrowing will not move share prices.
Share placement: As announced, the company has recently placed out 20,580,000 shares, equivalent to 10% of total issued shares at Rm 3.85 per share. As a result, the company has made an extra ordinary cash profit of 20,580,000 X Rm 2.85 = Rm 58.65 million. Share placement is a smart and easy way to expand the company and also to reduce its borrowings.
My golden rule for share selection: I will only buy a stock when I am sure the company can make more money in the current year than in the last financial year because I have not seen any share going up in price when it announces reduced profit.
How did I pick VS? As soon as I see a sudden increase in profit and revenue, I started to investigate more thoroughly before I buy the share. I will continue to accumulate patiently, buy more during price correction as no share can go up or down indefinitely for whatever reason. Sell some when it has gone up too much to reduce my margin loan so that I have funds available to buy during correction.
How to use margin loan? Some accountants would discourage you to use margin finance to buy shares. I have always used margin finance to leverage my profit. I am confident of making more money than the interest I need to pay. All business men borrow money to do business. In all business schools, students are told to make use of bank loan to do more business. It is considered inefficient if they use only their own capital.
The following comment is from the professional chartist who sent me the chart below:
Some syndicate action had entered the stock 2 days ago, as evident by the large volume.
The price is likely to reach 5.30 , only to retrace, perhaps back to 5.00 or slightly below.
If it reaches there (5.30), and at the first sign of weakness, I would sell some shares with the expectation to buy back on the cheap.
If the price shoots past 5.30 strongly, do nothing as its next target is 6.25. But this is unlikely as a healthy UP move must also be accompanied with some degree of retracement along the way.
MY OPINION: Basing on the profit growth prospect as shown by its quarterly profit announcements, I believe the price of VS will continue to climb. I have visited their Johor factories and reassured myself that its new product supply to the American Keurig Coffee is sustainable. In view of the weakness of our Ringgit at a 9 year low, I believe VS’ profit will continue to climb and its share price will also climb in tandem.
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Discussions
8 people like this. Showing 50 of 54 comments
Thanks for sharing your method of investment analysis !
Mr. Koon, keep it up and write more to educate novice like us !
2015-06-28 09:56
thank you KYY, i bought 50k shares last month with a avrg price below 4.00, since next 2 quarter is their peak period for keurig sales, i will hold at least until December..... hope the price will raise to RM 7.00 on that time....
2015-06-28 10:04
Ah Koon like that one, Vs drop he hide but Vs go up he come out make another promotion. How many times to promote Vs? How about Latitud and Insas? Hide again?
2015-06-28 10:36
Uncle koon i cant find ur post rekomen to buy at 1.80.. Guess i missed the boat
2015-06-28 11:31
Dear Uncle Koon,
you have many admirers and detractors. Sometime I jumped in to whack you as well (no regret, no apology, most of the time you deserved it)
I have to say that your stock picking skills sucked. In my opinion, you have a very narrow circle of expertise.
If you reviewed what you have recommended in the past, your investment was focused on the few areas that you are familiar with - plantation and construction.
You gave a lot of justifications on why those industries are good (long term demand for palm oil is good, blah blah blah). In actual fact, you were behaving like a "katak bawah tempurung" (I am saying this as a matter of fact, and not meant to be disparaging).
As such, you were always playing with the same few toys (what a pity for a rich kid) : RSawit, FGV, Jayatiasa, Mudajaya, Naim, etc and didn't pay attention to the remaining three thousand companies listed on Bursa.
As we all know, your performance has been (or should I say, "used to be") disastrous.
But, as you are spiralling all the way down, you bumped into somebody called OTB.
It turned out that OTB's investing strategy works (at least for the foreseeable future, just in case anybody feels the urge to debate with me about the merit of long term investment).
That is where I need to give credit to you - business instinct gained from decades of involvement in corporate world told you that this could be the right horse to bet on, that you should discard your old way and trust this new adviser to guide you.
In a dramatic turnaround, you are back with vengeance, exit from PN17 and is now heading towards (once again) financial success.
Well done, Uncle Koon. I congratulate you for rising as a phoenix from the ash. To be specific, I salute your ability to recognise your past mistakes, changed course and adapt to a new and ever changing world.
p/s : despite the kind words, I reserve the right to whack you when I dislike what you do. Have a pleasant Sunday
2015-06-28 11:50
Icon....good to see people like you who are not hypocrites.
Yaa..royals also can 'whack'..politician also can 'whack'..
and most importantly..ordinary man also can 'whack'! :)
2015-06-28 12:15
the only problem after that is...
the apes or malays may again try to separate again with
shiite and sunni belief..
and may be fragmented further..
2015-06-28 13:26
Steven, Why on earth are you attacking our fellow countrymen in this thread ? let's have peace. Things are messy enough already
2015-06-28 13:40
Got it from hypocrite
Posted by Probability > Jun 27, 2015 05:38 PM | Report Abuse
the only problem after that is...
the apes may again try to separate again with
shiite and sunni belief..
and may be fragmented further..
2015-06-28 13:48
Old man really needs to think of an exit strategy. Maybe place them out at slight discount to market. Can be done.
2015-06-28 14:09
Bro Icon8888 has an unborn phoenix....., Johore Tin is in waiting list to shows its true capability...,
2015-06-28 14:58
yfchong, better let it born first, before we blow our trumpet. If the bird miscarriage, then people will laugh die him
2015-06-28 15:07
ur a very good trader and speculator. much like goerge soros. I admire ur boldness.
2015-06-28 15:28
Today is Sunday! Been to Church? If not visit www.chick.com
Lots of Investment ideas from the Bible.
In Psalm 104:26 the phrase "THERE GO THE SHIPS" describe VS current movement.
VS = The "VIKING SHIP"
There are 3 methods ships are powered by.
No. 1 - Wind.
No. 2 - Human Strength
& No.3 - Internal combustion by coal, oil or solar power.
No 1 - Ships powered by Wind.
In ancient times ships were powered by wind. The favorable wind of earth's circuit (See Ecclesiates Chapter 1) have enabled sailing ships to travel far and wide.
So a Company like VS has received a booster by the strength of the US Dollar & weak ringgit. VS has moved up due to favorable wind.
No. 2. Ships powered by Human Effort using Oars.
In the days of the Vikings they also use human strength to power their ships. The more pair of hands equal more power. See the dragon boat race. It is powered by human energy! The more hands mean more power. Heave Ho! One, two and three! Heave ho! One two three! The dragon boat races ahead! All by human effort!
Ha! This is what we call "Piling On Effort". The more OTB & Mr. Koon write and recommend VS to others the more people pile into VS. And VS moves ahead in greater speed. Why not? Twin power of wind cum human effort!
No. 3 - Ships Powered By Internal Combustion
Today most Ocean liners are powered by Internal combustion. The Oil consuming ships can sail against the wind. Ships that are powered by sail cannot go against the wind. Same for those powered by Human strength. From November to March the fishermen from Kelantan, Trengganu & Pahang dare not go out to the dangerous waves of the North east Monsoon.
Sooner or later VS will run into a storm some day, some time.
Will VS still power on then? The wind direction might change suddenly.
I think by then the many pairs of hands that have joined the Viking Ship will be in deep trouble. So while the sky is still clear and the sun is still shining better sell VS into strength. It is better to go for the exit door while people are still merrily partying in total oblivion to danger. When everyone is rushing for the exit later the resulting stampede must crush some timid people.
And for Mr Koon who cannot exit Xinquan but must pass those shares to his children he might have to do the same for VS some day.
So the Viking Ship (VS) is nice and enjoyable while it is still sailing smoothly.
Enjoy your ride. Only don't get caught in a coming storm.
2015-06-28 18:09
Thank you to everyone for buying this counter and I think it is about time to get out from the train.
2015-06-28 19:52
What calvintan said...I try to speak in chinese
年轻人,人多地方不要傻傻的挤进去!
中国狂热的股市上周崩盘,有32股民跳楼。
上海年头外滩跨年晚宴人踩人。
历史一直在重复,血的教训不足告诫。
人类是善忘,更何况针没有扎到自己,不肉痛。
在心理学上,普通人在人群聚集的地方,心里面感觉安心放心,看到大家都在这里,胆量也跟着大起来,大家潜意识都会往人群里头挤。
所谓人多的地方是指人群的密度很高,密度越高,熟不知危险性也同倍升高。
因为人群越聚越多的,随便一阵小骚动,就可以造成悲剧,更何况是真的灾难发生,你已经动弹不得,只能坐以待毙。
2015-06-28 20:02
cpng, don't mind tell me whether you are referring to the whole market condition or just vs?
2015-06-28 20:14
Last 3 bars r a weakness to me , supply is there. Price is overbot , need to retrace..
2015-06-28 21:02
yeah ... follow calvitan buy bjcorp(tp 10), uems(tp10), and kulim ... you confirm can sleep well at night ...
2015-06-29 08:59
U ikut at yr own risks!!If not sure,buy magnum and toto and harap to strike jackpot
2015-06-29 11:44
murali always barking like dog, no evidence show KYY is selling, simply barking....
2015-06-29 20:41
SEE
Should have taken my advise to switch Latitude & VS to Jtiasa.
JTiasa is UP TODAY!
YEEEEEEEEEEEEEEEHAAAAAAAAAAAAA!!!!!
Plus!
I don't own JTiasa
2015-06-29 20:53
I observe, but cannot understand, each time Koon article comes out, it kena wag down. Anti-Koon hammer it kut???
2015-06-29 23:59
last time i attended talk by KYY, he said Jaya Tiasa his BIGGEST investment.
2015-07-22 09:55
Only stupid imvestor will keep their stock till old, now the trend is usd keep stronger, of course switch to export company
2015-07-27 22:40
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
RosmahMansur
Thanks mr KYY for the great analysis, so your next TP for VS is rm 5.30? Are you buying into YSPSAH as well? Are you still holding Latitude? What is your opinion on Latitude as the share prices had dropped to 1 month low of RM5.63?
2015-06-28 07:18