EVALUATING CHANGING FUNDAMENTALS

REASONS CONSIDERATIONS

o EPS or revenue growth is slowing or falling.
· Company may be entering a new stage of slower growth or stagnation.
· If considering additional purchase, use caution. The worse a company performs, the better a value it may appear.

o Quarterly pre-tax profits are falling.
· Use PERT graph to evaluate PTP.
· Three quarters of consecutive declining PTP are a danger sign.
· Five consecutive declining quarters are usually a definitive sign to sell.

o Cash flow is diverging from net income.
· If free cash flow is falling while net income is stable or rising, company may be "propping up" profits.

o Other fundamentals are deteriorating.
· Accounts receivable rising faster than sales.
· Inventories rising faster than sales.

o There has been an uncertain change of management.
· Dynamic company leader retires, replacement has questionable qualifications.
· Senior executives leave en masse.
· Those responsible for past success are no longer with the company.

o Company faces direct or indirect competition.
· Competitors threaten to affect the company's long-term prosperity.
· Companies with very high profit margins are often susceptible to increased, cutthroat competition.

o Company faces uncertain product cycle.
· Company is too dependent on single product.
· No new products in pipeline (such as pharmaceutical companies).

o Company has uncontrolled raw material costs.
· Can harm profit margins.
· If company doesn't hedge, they may have no option but to pay higher prices for necessary materials.

o Company is the victim of fraud or "accounting irregularities."
· If the books are being cooked, investors will be last to know.
· No way for investors to know if management is lying, or auditors are covering up.
· Get out fast; these are not quality companies.

o Company's debt rating has been lowered.
· Can often be an early warning sign of greater problems in the future.



D. FINAL CONSIDERATIONS

· Don't hesitate to sell in retirement accounts where taxes aren't an issue.
· Don't automatically buy because a stock falls in price; re-evaluate as if new.
· If you won't purchase additional shares of a fallen stock, why would you continue to hold it?
· Don't "wait to get your money back" from the stock – it doesn't know you own it.
· Don't be paralyzed by uncertainty.
· Don't be an ostrich with your head in the sand – face up to the problem.
· Remember the Rule of Five.
· Use Challenge Tree to continually upgrade your portfolio.
· Think "replace,"

Evaluating Changing Fundamentals
· Don't automatically buy because a stock falls in price; re-evaluate as if new.

Ask ourselves:
Is the correction a true bargain?
Maybe the price uptrend would resume?
Or, maybe not, this being a reversal of the uptrend?
Obviously, having an idea of where the "fair value" of the stock is, helps.

Growth Stocks: Searching for the Sprinters

Investors who focus on growth try to predict which companies will grow faster in the future -- faster than the rest of the stocks in the market, or faster than other stocks in the same industry. If you're successful in buying a company that does grow faster than other companies, then it's likely that the price of that company's stock will increase as well, and you can make a profit.
(My comment: Provided you did not pay too high a price to buy it.)

The stock of a company that grows its earnings and revenues faster than average is known as a growth stock. These companies usually pay few or no dividends, since they prefer to reinvest their profits in their business.

Peter Lynch primarily used a growth stock approach in managing the Magellan mutual fund. Individuals who invest in growth stocks often prefer it because their portfolio will be made up of established, well-managed companies that can be held onto for many years.

Companies like XYZ, OPQ, and TUV have demonstrated great growth over the years, and are the cornerstones of many portfolios.

"Believe it or not, history offers surprisingly good news about what the stock market will likely do from here. No, history doesn't always repeat itself, but, as the saying goes, it rhymes. So please don't cash in your stocks for CDs until you read the rest of this article. To ignore history would be folly."

"Do things seem worse than they were during other bear markets? If so, it's partly because of our tendency to forget the distant past and focus instead on the recent past. I submit that the events surrounding many past bear markets were at least as frightening as those of this one. I certainly remember the anxiety surrounding the 1987 crash, when the Dow Jones industrial average plunged 22.6% in one day—eclipsing the 1929 crash. I thought we might well enter a depression. Instead, stocks hit bottom less than two months later."

"Yet, soon after the onset of a bear market, the market generally has risen. One month after breaking the 20% threshold, the S&P had gained 3%, on average, during those nine bear markets. Two months later, it had risen 6%. on average. Three months later, it was up 5%, and six months later, the S&P had returned 7%. Twelve months after the initial decline, the market had surged 17%, on average."

How can the market advance so much so quickly when stocks tumble another 11% after hitting the 20% bear market threshold?

It's because bear markets tend to be "V"-shaped in their final stages. That is, share prices tend to decline dramatically and quickly as investors capitulate, then rebound just as quickly. "Once a bear market ends, the rally out of that bottom is very sharp and very, very profitable."

Yes, we all know that averages and statistics can be misleading. After all, the returns above are for the average bear market. What's to say that this will turn out to be an average bear market, with all the bad news still out there?

calvintaneng, the hero of Netx fame. If only you are honest and humble.

It is so sad to see calvintaneng posting like so. Sheer arrogance. Also, where is his credibility?

A broken clocks still tells the right time twice a day.

>>>>
calvintaneng

Why you come here?
asking so many questions ?
Do you intend to find the truth about Tsh or to find fault ?

Go call up Tsh management and get their answers better or else better to back to your Dlady
>>>>



calvintaneng is repeating and lacks originality.

calvintaneng phoned Penelope of Netx and the spunned a long story to promote his stock. We all know the story and outcome. Unsurprisingly, I honoured calvintaneng as the hero of Netx fame. Perhaps, a naked one today.

Less rhetoric. Please focus on business and its fundamentals. Don't be arrogant. Stay humble always.

What is the total asset of TSH? RM 2.96b
What is the equity of TSH? RM 1.9b


My assumptions:
What is your estimated earning for TSH annually for the next 5 years? RM 70 m to RM 100 m annually.
What is your projected growth in earnings for this company over next 5 years? little to minimal growth
What is your projected sustainable dividends yearly? RM 20m to RM 35m yearly

What is the market cap of TSH today? RM 1.52 b (Price RM 1.08 per share)
Today, TSH is trading at PE range of 15 to 21.7
Anticipated annual DY ranges 1.3% to 2.3%
ROA 2.36% to 3.4%
ROE 3.6% to 5.3%

How do you value a company?
The intrinsic value of a company is the discounted value of all its future free cash flows.

Why is TSH priced at 1.08 today and not a multiple of this, as calvintaneng so generously or kindly predicted?

Why is TSH priced at 1.08 today and not a multiple of this, as calvintaneng so generously or kindly predicted?

>>>
Posted by calvintaneng > 3 hours ago | Report Abuse

Zhuge_Liang

Calvin does not condemn or attack people

To brainstorm for the best ideas ok

Keep the peace even though we might differ
>>>>>


Not true based on his past behaviour: just have to review his old posts. calvintaneng is no saint.

In 2019, I think calvintaneng probably also said the same thing about NETX ... that no one knew about NETX the way he did. :-)

calvintaneng

I am surprised that you cannot see you are not so ethical in your posts.
I have been holding DLady for many years. It was never promoted, though I shared how DLady has been a very rewarding stock to have for these years.
As was in previous cases too, stock prices can go up or down for various reasons. It is not unusual for a stock to go up 50% or down its equivalent 1/3rd in a 52 week period.
Yes, DLady has hit a difficult patch the last few years. Its earnings are down, its dividends cut, profit margins shrunk, cost of goods gone up ... etc. It also has to spend a great deal of money (capex) for its new manufacturing plants. All these are known.
The question to answer is: Will DLady's business be better in 2 to 5 years from now? At the present price, will you be happy to buy, hold or sell the stock?

I always go through these thinking process, often keeping these to myself.

We had a long discussion on Netx for almost 2 years. calvintaneng should be ashamed of himself for all the remarks he made on so many people who participated in Netx. Did you even admit you were wrong or you have made a very big mistake in Netx? Of course, not. Pride and arrogance are your trademarks. We do not expect to have a good dealing with people lacking integrity.

Have a great day. My participation in i3 is purely investing for gains.

3iii

My friend was elated. Bumper income from his 100 acre plantation for a few months last year.

Another friend with 10,000 acres of oil palm plantation remarked it was painful seeing the fruits rot on the trees during the high price period as there was a shortage of labour in his plantation.

This month, my friend with a 3000 acre plantation mentioned he had a great income last year due to the very high price of palm oil and he does not expect to witness the same this year.

December 30, 2022

CPO expected to average at RM5,100 a tonne in 2022, seen at RM3,800 a tonne in 2023, says MPOB.

Profits of Malaysian plantation companies are heavily influenced by external factors

Conclusion:

Profits of plantation companies are affected by crude palm oil (commodity) prices which are heavily influenced by many external factors:

- seasonal fluctuation on palm oil production,
- weather conditions
- availability of supply of other major vegetable oils e.g. soya
- labour supply in oil palm plantations' FFB harvesting and unloading activities.
- strength of the ringgit
- increase in the oil palm productive areas
- tariffs for palm oil products

What does intelligent means in investing?

Benjamin Graham

Intelligent investor: this is an investor "endowed with the capacity for knowledge and understanding."

Intelligent here is not to be taken to mean "smart" or "shrewd" or gifted with unusual foresight or insight.

The intelligence here presupposed is a trait more of the character than of the brain.


The first rule of intelligent action by the enterprising investor must be that he will never embark on a security purchase which he does not fully comprehend and which he cannot justify by reference to the results of his personal study or experience.

Strong, thorough research is the most important part about owning stocks. (Benjamin Graham)
The Intelligent Investor by Benjamin Graham


There’s one big underlying theme to this book. Yet, it keeps coming to the forefront again and again. It’s the one point that I believe Graham wants people to take home from this book.
Strong, thorough research is the most important part about owning stocks.
If you can’t – or aren’t willing to – put in a lot of time studying individual stocks, identifying ones that genuinely have potential to return good value to you over time, and keep careful tabs on those individual stocks, then you shouldn’t be investing in stocks.
Over and over again, Graham makes this point, in both obvious and subtle ways. He’s a strong, strong believer in knowing the company. If you don’t have clear, concrete reasons for buying a stock, then you shouldn’t be buying that stock, period.

Are You an Intelligent Investor?
Graham believed someone could be an intelligent investor in two ways:

ACTIVE OR ENTERPRISING INVESTORS - These types of investors have a lot of time to spend on building and managing their portfolios and also have a high risk tolerance. They must continually research, select, and monitor a dynamic mix of stocks, bonds, or mutual funds.

PASSIVE OR DEFENSIVE INVESTORS - These types of investors don't have a lot of time to spend on a portfolio or can't tolerate much risk. They must create a permanent portfolio that runs on autopilot and requires no further effort. This type of passive portfolio won't be very exciting, but it will get you steady returns over your lifetime.

This post just shows why calvintaneng is such an unintelligent Investor as defined by Benjamin Graham in his classic book, “The Intelligent Investor”.

calvintaneng, the hero of Netx is just rude.

Is i3 forum for the naked hero of Netx only?

:-)

This assessment of the integrity of the fund manager can best be summed up as difficult, subjective and based on your personal views. This view is also influenced by your interactions with others and this fund manager in the same industry. Eventually, in the majority of situations, it is a personal opinion.

Size of Holdings as at 31 May 2022
Company (‘000 shares)
Bioalpha Holdings 49,058


Interesting to see Bioalpha is in iCap portfolio.

Gruesome company by my definition.
However, net cash positive.
Balance sheet is good.
Will this company do better post-pandemic and also now that China has opened up?

Value investing by ttb.

CA 81.7 m
TL 29.5 m
Net net 52.2 m

NCA 115.5 m

Cash 39.7m
ST Borrowings 4m
LT Borrowings 7.4m
Lease liabilities 4.2m




Price per share 8.5 sen
Market Capital (RM)
: 117.14m
Number of Share
: 1.378b
EPS (cent)
: -3.35 *
P/E Ratio
: -
ROE (%)
: -27.46
TTM Profit Margin (%)
: -129.1
CAGR - Revenue (%)
: -
CAGR - PAT (%)
: -
Dividend (cent)
: 0.000
Dividend Yield (%)
: 0.00
NTA (RM)
: 0.122
P/B Ratio
: 0.70

Probably more shareholders burnt than benefited.

Peter Lynch delivered great returns while managing the Magellan fund for 13 years. Yet, when he analysed the returns to the shareholders, the majority lost money!

Similarly, I am of the opinion, even today, the majority of shareholders who had bought and sold icapital close end fund were losers. The winners are probably a minority who bought in the early years especially the initial investors into the fund at the time of launch, and who have held onto the stocks till today.

A Strategy for Losing Money

When a premium, particularly a high premium, is paid to own closed-end funds, the investor is hoping there is someone willing to pay an even higher price for the same shares. This fact invokes the greater fool theory.


Two events could cause this investor to incur a loss in their investing into closed-end funds too.
1. The first is the fund’s net asset value DECLINING, which should cause the share price to decline and is an inherent risk with any type of fund.
2. The second is a decrease in the premium. Should the premium decline FASTER than the fund appreciates in value, the investor could lose even though the underlying net asset value of the shares increased in price.

The WORSE-CASE scenario, of course, is for the fund’s NAV to decline and its premium to shrink—a double whammy.

Closed-end funds differ from mutual funds and exchange-traded funds (ETFs) by having a fixed number of shares.

Mutual funds and ETFs
As money flows into and out of mutual funds and exchange-traded funds, the number of outstanding shares is adjusted. Mutual funds directly issue shares to and redeem shares from shareholders. ETFs adjust their share counts through creation units, which are large blocks of shares issued to and redeemed from institutional investors and large traders.


Closed-end fund
If there are more investment dollars flowing into a closed-end fund than the net value of its assets, shares of the fund will trade at a premium to their net asset value (NAV). It’s the law of supply and demand. More dollars will drive up the share price because transaction proceeds go into the pockets of selling shareholders, but never into the closed-end fund. (New investor dollars only flow into a closed-end fund when an offering occurs, which is not very often.)

ttb versus Laxey

iCapital.biz's ethos is to allow long-term shareholders to benefit from value investing, helmed by the respected ttb.

Laxey though is likely to put forward a simple and pragmatic suggestion to iCapital.biz shareholders: liquidate your company and cash in at its NAV (or close to it).

By definition, an open-end mutual fund trades at a price that reflects the market value of its holdings. So the price of an undervalued closed-end fund will rise if the fund is converted to an open-end fund.

Closed-end fund managers may oppose conversion for several reasons.

- First, they receive a management fee that is a percentage of total fund assets. After a fund is converted to open-end and the price rises, many fund investors typically sell, shrinking assets under management and management fees by one-third.

- Fund managers may also oppose conversion because of a belief that an open-end structure--which requires them to redeem investor shares on demand in cash--will hurt the fund in the long run, by forcing it to raise cash by dumping stocks of small, growing companies at inopportune moments.

How can the shareholders of a publicly traded closed-end fund narrow the discount of its share prices to its NAV?

Among the methods are the forced conversion of publicly traded closed-end fund to open-end mutual fund, or, in extreme case, the forced liquidation of closed-end fund.

iCap is not a new closed end fund. A new closed end fund can be expected to trade at a discount due to substantial underwriting fees paid to the brokerage firms that market the shares. Also, these brokerages may support the price through active trading in the days immediately following the offering, the firms typically retreat soon after and use their capital elsewhere. Once the firms are no longer supporting the price of a closed-end fund, it typically drops.

Another common factor affecting prices of closed-end funds are high management fees, which reduce returns.

The price for a fund's shares is primarily determined by the demand for the fixed number of shares. Investors consider the underlying market value of a fund's holdings, but share prices for the funds are also influenced by expectations, emotions and other factors that often affect prices in the stock market.

Closed end fund trading at huge discount is vulnerable to hostile raid, often by predators that are after short-term quick gains, rather than long-term bigger gains.

Is iCap facing a similar situation?

Fiscal year is July-June.
All values MYR Thousands.
2022 2021 2020 2019 2018 5-year trend
Net Income
200,558.0 76,129.0 (129,572.0) (191,011.0) (79,686.0)
Net Operating Cash Flow
322,551.0 146,361.0 184,580.0 67,239.0 156,776.0
Capital Expenditures
(21,055.0) (13,795.0) (23,206.0) (54,061.0) (80,785.0)
Free Cash Flow
301,500.0 132,566.0 161,374.0 13,178.0 76,511.0

Cash Dividends Paid - Total
- - - (4,840.0) (4,840.0)
Net Financing Cash Flow
(14,413.0) (110,691.0) (143,348.0) (71,090.0) (98,616.0)

4.94 per share

PENTA Financial Information
Market Capital (RM)
: 3.519b
Number of Share
: 712.32m
EPS (cent)
: 11.57 *
P/E Ratio
: 42.70
ROE (%)
: 13.13
TTM Profit Margin (%)
: 13.7
CAGR - Revenue (%)
: 16.1
CAGR - PAT (%)
: 18.1
Dividend (cent)
: 2.000 ^
Dividend Yield (%)
: 0.40
NTA (RM)
: 0.881
P/B Ratio
: 5.61

Segmental Information
The Group has three operating segments which are involved in different activities and are managed by segment managers who report directly to the Group’s executive directors.

The operating segments are as follows:
(i) Automated test equipment (“ATE”): Designing, development and
manufacturing of standard and nonstandard automated equipment;
(ii) Factory automation solutions (“FAS”): Designing, development and installation
of integrated factory automation solutions;
(iii) Smart control solution system: Project management, smart building solutions and trading of materials.

The Group’s revenue was mainly contributed by the ATE and FAS segments, constituting
approximately 70.1% and 29.9% respectively of the Group’s total revenue in FYE 31
December 2022.

The Group closed its 12M2022 with a profit before taxation of RM132.1 million, representing an increase of 10.6% from a profit before taxation of RM119.5 million recorded in 12M2021.

Basic earnings per share increased from 2.79 sen in 4Q2021 to 3.20 sen in 4Q2022 and increased from 10.24 sen in 12M2021 to 11.58 sen in 12M2022.


Automated test equipment
During the year, backed by the electrification in the automobile industry and the
proliferation of the electric vehicles (“EV”) ecosystem, the automotive industry
emerged as the leading segment within the ATE business unit, contributing
approximately 58.4% as compared to 27.6% in the previous year.

Underpinned by a massive wave of developments in automotive electrification and the various global decarbonisation policies which accelerated the adoption of EV, the Group’s broad array of automotive test solutions specifically the front-end tester for SiC and back end solutions for power devices made a meaningful breakthrough in the addressable market.

On the other hand, while the semiconductor industry is inherently cyclical, the ATE
segment also benefitted from the semiconductor industry with its revenue contribution rate of 19.9%, representing an overall 17.6% growth as compared to 2021.

In contrast, revenue from the electro-optical within the ATE segment contracted to
19.0% in 2022, from 49.7% in 2021,

Overall, the Group’s strong presence in the automotive industry has complemented
its ATE business and such positive development will continue to provide impetus for
growth to the overall Group’s ATE segment in the mid-to long term.

Factory automation solutions
The FAS segment of the Group has been gaining its traction over the last few years.
Since the listing of the Company, the FAS segment has been consistently recording
years of double-digit revenue growth with the exception of 2019 where a decrease of
18.4% was recorded.

The medical devices segment leading and driving the Group’s FAS growth this year
with its revenue contribution rose to 41.5% from 19.3% in the previous year. The
strong year-on-year revenue growth of 154.6% from the medical devices segment
was mainly driven by global manufacturers of medical products in adopting the
various process and assembly automation in their manufacturing processes for better
productivity and efficiency.

The emergence of digital technologies has accelerated the adoption of automation.
Many companies across various industries are seen adopting automation in a broader
manner especially in a post-pandemic environment in achieving efficiency and
productivity within a safe operating environment.


Smart control solution system
The products and solutions in this segment entail project management, smart building
solutions and trading of materials. There was no external revenue from this segment during the financial year.

Bought Heim ( Guinness) many years ago for just below RM6. For first 10 years, its share price was below my buying price. At the 10th year or so, its share price was at my buying price. However, due to its very high DY of 8% or thereabout, when its price was at my buying price, taking dividends into account, this stock had returned 100% at that point.

Today, its DPS is 81 sen. At buying price of about RM6, this is a DY of 13.5% based on historical cost.

HEIM

28.72 per share

HEIM Financial Information
Market Capital (RM)
: 8.676b
Number of Share
: 302.10m
EPS (cent)
: 136.65 *
P/E Ratio
: 21.02
ROE (%)
: 84.35
TTM Profit Margin (%)
: 14.5
CAGR - Revenue (%)
: 8.2
CAGR - PAT (%)
: 8.9
Dividend (cent)
: 81.000 ^
Dividend Yield (%)
: 2.82
NTA (RM)
: 1.620
P/B Ratio
: 17.73




FY 2022

PBT 594 m
Net CFO 488 m
Capex 193 m
FCF 295 m

Dividend paid 320 m

FCF yield 3.4%






Bought Heim ( Guinness) many years ago for just below RM6. For first 10 years, its share price was below my buying price. At the 10th year or so, its share price was at my buying price. However, due to its very high DY of 8% or thereabout, when its price was at my buying price, taking dividends into account, this stock had returned 100% at that point.

Today, its DPS is 81 sen. At buying price of about RM6, this is a DY of 13.5% based on historical cost.

FY 2022

PBT 594 m
Net CFO 488 m
Capex 193 m
FCF 295 m

Dividend paid 320 m

FCF yield 3.4%

28.72 per share

HEIM Financial Information
Market Capital (RM)
: 8.676b
Number of Share
: 302.10m
EPS (cent)
: 136.65 *
P/E Ratio
: 21.02
ROE (%)
: 84.35
TTM Profit Margin (%)
: 14.5
CAGR - Revenue (%)
: 8.2
CAGR - PAT (%)
: 8.9
Dividend (cent)
: 81.000 ^
Dividend Yield (%)
: 2.82
NTA (RM)
: 1.620
P/B Ratio
: 17.73

>>>>
Posted by SEE_Research > 33 minutes ago | Report Abuse

From calvintaneng ___ boh liau fella /

Means in Malay = HABIS THE GREAT K ON ARTIST, CALVINTANENG OF KLSE AND SGX

THE INVESTMENT APPROACH OF CALVIN TAN
CALVIN WANTS TO TELL ALL AT NETX (0020) , I AM KEEPING ALL NEXT SHARES TIGHTLY, Calvin Tan Research

calvintaneng
Publish date: Mon, 21 Oct 2019, 01:40 PM
Dear Friends, Investors & Traders

>>>>

Thanks for reminding calvintaneng and his side-kick, stockraider.

Pre-tax profit for FY2022 increased by 50% to RM2.25 billion (FY2021: RM1.50 billion) with contribution from Wilmar International Limited ("Wilmar") which increased by 40% to RM2.10 billion. All key segments recorded improvement in revenue and profitability.

The Board of Directors is pleased to recommend a proposed final dividend of 28 sen per share for the financial year ended 31 December 2022 (2021: Final dividend of 25 sen per share) payable on Thursday, 8 June 2023 to shareholders.

Together with the interim dividend of 12 sen per share paid on 28 September 2022, total dividends paid and payable for the financial year ended 31 December 2022 would amount to 40 sen per share (2021: 35 sen per share).


Price per share RM 17.50
Market Capital (RM)
: 24.895b
Number of Share
: 1.423b
EPS (cent)
: 154.42 *
P/E Ratio
: 11.33
ROE (%)
: 8.50
TTM Profit Margin (%)
: 35.3
CAGR - Revenue (%)
: 7.6
CAGR - PAT (%)
: 12.8
NTA (RM)
: 18.160
P/B Ratio
: 0.96

COASTAL Financial Information
Market Capital (RM)
: 1.282b
Number of Share
: 545.40m
EPS (cent)
: 78.61 *
P/E Ratio
: 2.99
ROE (%)
: 25.71
TTM Profit Margin (%)
: 149.5
CAGR - Revenue (%)
: 24.2
CAGR - PAT (%)
: 132.3
COASTAL Financial Information
Market Capital (RM)
: 1.282b
Number of Share
: 545.40m
EPS (cent)
: 78.61 *
P/E Ratio
: 2.99
ROE (%)
: 25.71
TTM Profit Margin (%)
: 149.5
CAGR - Revenue (%)
: 24.2
CAGR - PAT (%)
: 132.3


Cumulative 6 months ended 31.12.2022
RM'000
Net cash flows from operating activities 81.762 m
Purchase of property, plant and equipment (0.101m)

FCF 81.7m

In accommodating long term demand for fossil fuels, Enhanced Oil Recovery (EOR) technology has been practised immensely since the past few years to ensure optimum exploitation of oil resources. With the Jack-up Gas Compression Service Unit (“JUGCSU”) charter contract secured by the Group, which is currently in operation, the Group is able to effectively leverage its competitive advantage and strong foothold in this sector with promising prospects. Recently, Coastal Group diversified its earnings portfolio in Mexico by venturing into gas sweetening processing plant project. The Management is optimistic with the prospect of our Gas Processing Division.

The Management believes that the OSV market remains oversupplied but the market equilibrium has improved since FY2019 mainly due to the gradual increase in upstream activities and also due to increasing consensus that a large number of vessels
which have been laid up during the downturn may not return to service due to high reactivation costs and the reluctance of oil companies to contract vessels which have been out of service for longer period.

While waiting for the
recovery of OSV market, Coastal Group has embarked into liftboat chartering with a long term plan to tap into the wind farm renewable energy sector which is currently the fastest growing energy sources in the world.

Coastal Group shall still continue to pursue new business that suits its growth strategies, such as Floating Production Storage and Offloading (FPSO), Floating Production Unit (FPU), Floating Storage and Offloading (FSO), Floating Storage and Regassification Unit (FSRU) and other O & G related projects.

Prospect

In view of the most rapid vaccine rollout globally, the global economy is expected to recover quickly from the Covid-19 pandemic triggered recession. At the meantime, joint commitment of Organisation of the Petroleum Exporting Countries (OPEC) plus non-OPEC major producers in tightening their supply shall further stabilise the global oil market. Given the strong recovery of oil prices driven by vaccine optimism and oil producers’ supply cuts, Coastal Group shall have *plenty of opportunities to materialise more deals in the short to medium term*.

stockraider is not honest.

Many years ago, this was already known.

On one occasion a few years back, he declared he bought a lot of a certain stock on a certain day. Alas, my good friend pointed out to him that this was impossible, as the total volume of the stock transacted for that counter was less than what he claimed he bought.

No need to have more example. One instance is all you need to reach a conclusion.

Have a great day, folks.

>>>>
Well, I know of many who own Nestle and DLady too. One got ESOS. every time the Nestle share was up by 10 to 20%, he sold. Though working in the company, he does not own any of the shares long term.
>>>>
I opine this friend was not knowledgeable in shares. He was extremely risk averse. Just fear he will lose money in stock. At the earliest profit, he sold to pocket the gains. All his Nestle shares were disposed below $20s which were the prices during that period. What he needed was perhaps some education and guidance.


>>>In the early 2000, Nestle shares stagnated. There was not much growth in the company. Nestle wasn’t investing into the company. On the other hand, DLady was doing a lot better. It’s growth was better and it’s returns eclipsed that of Nestle by a large amount. My friend advised, he bought DLady in preference to Nestle. In fact, he advised sincerely to sell Nestle and parked the money in DLady.>>>>

This friend was right during that period. DLady performed so much more than Nestle. In fact, it was painful to be stuck in Nestle during that period. But then, one was still receiving dividends from Nestle consistenly. Another reason for not selling Nestle was DLady was alreaddy in my portfolio too at that time.

There is only one strategy that works for value investors when the market is high – patience. The investor can do one of two things, both of which require steady nerves.

· Sell all stocks in a portfolio, take profits, and wait for the market to decline. At that time, many good values will present themselves. This may sound easy, but it pains many investors to sell a stock when its price is still rising.

· Stick with those stocks in a portfolio that have long-term potential. Sell only those that are clearly overvalued, and once more wait for the market to decline. At this time, value stocks may be appreciating at slow pace compared with the frisky growth stocks, but not always.

But come the correction, be it sudden or slow, the well-chosen value stocks have a better chance of holding their price.

As for the hot stocks, when they take a hard hit the investor is cornered. If the stock is sold, the loss becomes permanent. The lost money cannot grow. If the investor hangs on to the deflated stock, the long trail back to the original purchase price will deeply erode the overall return.

BELIEVING A BULL MARKET

When markets are rapidly rising, value investing invariably falls out of favor with the investing public. In an upward racing market, value stocks appear dull and stodgy as the more speculative issues rush toward new market highs. But come the correction, it all looks different. Stable value stocks seem like trusted friends.

Most bull markets have well-defined characteristics. These include:


Price levels are historically high.
Price to earnings ratios are high.
Dividend yields are low compared with bond yields (or compared with a stock’s particular dividend yield pattern).
Margin buying becomes excessive as investors are driven to borrow to buy more of the high-priced stocks that look attractive to them.
There is a swarm of new stock offerings, especially initial public offerings (IPOs) of questionable quality. This bull market is what investment bankers and stock promoters call the “window of opportunity.” Because IPOs so often occur when Wall Street is primed to pay top dollar, seasoned investors joke that IPO stands for “it’s probably overpriced.”

SIGNS AT THE BOTTOM

The bottom – or near enough the bottom – of a market cycle theoretically should be easier to call than the top or near top. The evidence is found in the corporate balance sheets, income statements, PE ratios, dividend yields, and other quantitative measures. It is likewise reflected in low ratios for the market as a whole. The quantitative factors speak for themselves.

The dividend yield on the Dow Jones Industrial Average, for example, usually cycles between a high yield of 6 percent at the market’s bottom and a low yield of 3 percent at the top. The Dow’s average dividend yield sometimes stretches beyond these boundaries, but historically this is a trustworthy parameter of undervalue and overvalue.

Unfortunately, this is the time when investors are feeling most beat up by the markets. Fear and negative thinking prevail, and anyone who has faced down a bear knows how paralyzing fear can be. This, at the depths of a bear market, is the time to buy as many stocks as are affordable. “Value bargains aren’t found in strong markets,” writes money manager Charles Brandes. “A good rule is to examine stock markets that have reacted adversely for a year or so.”

Undervalued stocks quite often lie dormant for months – many months – on end. The only way to anticipate and catch the surge is to identify the undervalued situation, then take a position, and wait, Graham said.

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Buying a neglected and therefore undervalued issue for profit generally proves a protracted and patience-trying experience.

Though market conditions are easy to see in hindsight; they are, according to Security Analysis, almost impossible to predict in the near or distant future: