"Now, I think if you go in now, at this price, and keep, and if you know how the company is building its future (please read through this thread to understand more) you will be confident to keep adding. That's all one has to do. No such thing as having to do work every day. At the end of a 3 or 5 year period , you see the multiplier effect and how wealth is created by choosing the right company and doing little.

11/04/2014 11:26"

FB2, I like, I like...........

Sorry folks, I was out of this thread for a couple of days.

This counter remains the largest holdings (>25%)in my portfolio for several years. I believe in leverage,I have share financing. I don't believe in CASH. I call it a deprecating asset. I have -ve cash reserve. 35% of my holdings is funded by borrowed money. I believe in cash flow management, Dividend is important to me, I believe dividend I received must > twice the amount of interest I have to service, currently 3 time. Recently, I feel a bit bearish. I do believe markets crush and companies can turn bad BUT I refuse to be a failure.

In a nutshell, I try to say that I have a lot of confident in the company.

Let me put my 2 sens worth about the company dividend here.

Before split, The company paid 18 sens dividend last FY. The last 3 Qs dividend was 5 sens. This means a rolling 4Q of 19 sens.

The company is very consistent in paying out increasing dividends over the years except May 2011 whereby dividend dropped from 3 sens to 2.5 sens. The EPS dropped from 2.30 to 2.19 before they decided to reduce the dividend. The dividend went back to 3 sens when the EPS went back up to 3.68 sens the next Q. What happenned in the following Q (NOV2011)? They paid 3.5 sens when EPS was only 3.48. Are they overdoing it by paying more than they earned? NO, they already knew they will earned more the subsequent Q. Indeed, it was EPS 4.32 & Div 4.00 in Feb 2012. Never look back since then.

I agree with FB2 that "The company says it intend to pay the same amount of profits as dividends ". Assuming the company is earning the same in coming months. The dividend SHOULD be 5/2.5 = 2 sens per Q = 8 sens p.a.

At 1.45, this is 5.517%. I thimk FB2 is very conservative to put it as 4-5%

I would like to say put your money on the winner, proven WINNER!

FB2, no clue at all how this indian business will do to the company top & bottom line

FB2, yes wiped off as you predicted

factory 3

I am quite confident that they will be paying 2 sens/Q until factory is up & running.

They might be suffering from a slight contraction in earning due to strong Ringgit.

The seller(s) at 1.45 still there

FB2, Yes. It will be a new ball game when factory 3 is up. We just can't tell for sure it will be better or worse.

However, I have faith in Huang Sa & Alex Chew. They are financially prudent people. They will try their utmost for the company & shareholders. That's good enough for me to ride on with them.

If better things are unfolding itself later or price comes down to a 'bargain' level. I will raise the ante

FB2, someone just cleared the worry you have at 1.45. uptrend resume?

Yes, nicole, holding power is important.We have to play the game within our means.

Share financing is availble at 4.6% amd Wellcall is giving a yield of 5.5%. Moderate borrowing is fine.

Hustle, my understanding from the management is that they are very close to full capacity with the present facilities. They were enjoying better & better profit margin so far. Competition is not an issue at the moment. They also anticipate that they might have excess production when the new factory is up and running. We will only know when we cross it.

nicole76, my answer to your question is NO, I will not weed the roses from my flower bed.

One thing for sure is improvement in liquidity.

Yes EPS is only 8-9 sens p.a. before the completion of factory 3.

PE of 18-19, is this high? I would say is acceptable taking into consideration of its growth prospect in sight.

Dividend of 2 sens/Q is almost guaranteed. A yield of 5.5% p.a.. NOT bad by any standard

Agree with FB2 that it need to clear the sellers at 1.45 before it continue its uptrend.

Last year detachment of steel business is a good move. They did well to focus on the core business.

I feel it is important to have an insight of what the management is thinking. After all, it is people who make the world go round. The major shareholders owns > 50% shares, if they have the interest of the shareholders at heart, we will vote for them and enjoy the fruit of success together.

Yes, time will tell.

Neither am I a financial guy, I only apply layman logic to analyze the figures. The A&O expanses has increased from RM1.02 mil last year to RM2.385mil. A staggering increase of > 100% and is > 16% of Revenue. My simple business instinct tell me that they have to boost up the revenue or tightening their spending in a hurry to bring the ratios down.

No detail was given on the impairment of trade receivables. Hmmmmmm..........

We are not sure to the capacity and capacity utilization of the company. Cannot comment on growth & growth prospect.

However, The balance sheet is good and RM15 mil (18.75 sens per share) cash in hand is great. There is no clear direction to the company dividend pay out policy. If they are paying a decent dividend to the shareholders while sorting out their A&O inefficiency and future plan, it will be a good & hopeful counter to own.

Cheers, Fb2

I see your logic of forecasting the 4th Q EPS to be 2 sens. a fair assumption.

Effort is required to boost revenue for the mid to long term health of the company. Administrative & operating expenses is too high for my liking. In fact, I remember there was an article complaining about that. Finally, I hope the impairment of trade receivables is an one time affair. The cause of the impairment is also important. Hope they can be more careful and not due to some over aggressive sale tactics.

Although they are still on track in their recovery, they seems to have slacken. I will stay put and keep a watchful eye on the next Q results.

FB2,Thanks. Just came back from dinner.

You seem to be still upbeat about the counter.

I notice that there is no growth in revenue, significant raise in administraive & operating expenses & worrying impairment of trade receivables.

You are setting a tall target of 2.04 EPS, is it attainable?

Fb2, I always feel that this counter will only mature in 2017. Accumulated too little!

Yes, good time to stay away from the market and only come back to look at it in May.

I am looking at Cocoaland. Like the product but shares too thinly traded and too much prenium to pay at the moment.

Fb2, I will look into AEON.

Kossan, I find the rubber glove sector is facing too much competition and did not go any further.

Karex is too new.

Coastal, I was holding some before. I remember that I sold all when they were giving some discount to their customers. I opined that they don't have any economic moat. Of course I was proven wrong. Nvm, I will not return to this counter any more.

Thanks.

Nothing worth a bet now. Look at Hevea but feel that it still need time to prove itself. Bkawan is undervalue but no elephant gun in hand. Ha ha

Perhaps will increase holding on pint areas if prices retrace a bit.

Results will be out on Monday evening. Let see what happen on Monday

For some unknown reasons, the interest in this stock fizzle out. Are we going to get some unexpectedly bad news or bad results in the coming announcement?

This is the 2nd largest holdings in my portfolio.

I attended 2 recent AGM. There is no question about management integrity. I just feel there are keeping too much idling cash in the company a cash bonus is better than bonus shares.

They were not interested in GLC jobs because of the low profit margin due to competitions. Hope they are getting the same margin of 30+% in this contract.

Agree!

So we are expecting EPS for the quarter to be > 2.19. See no reason in missing that.

Any growth?

Fb2, Good to see you here. Another winner!

The company already chalked up some increase in earning. I have no more worry about its earning over the next couple of years.

Let's see how they reward the shareholders. Dividend coming in the next 2Q. Hope to get at least 5 & 10. This will represent a grow of 5 sens from last year.

Looking good fb2, I think ppl are speculating on the coming results on Friday or Monday. I might sell a bit b4 that to buy abalone.ha ha ha

Will look at the results b4 committing to long term.

Any expectation?

Firebird2, Superlon making a move?

Agree. Hevea can be a rocket. Buying is a matter of timing.

"For me the best thing about Hevea is its abundant cash flow and free cash flow which the management has been using it wisely to pare down debts. If this continues in the next few years, Hevea will be less risky with less debts and money available for distribution and other investments."

kcchong put it wonderfully well!!!

aunloke, we are on the same page. I have been net seller in February getting ready to go bargain hunting in May.

Back to YOCB, the value is reflected to a higher level now. Which is what we hope will happen when we buy. It is not a high dividend yield counter. Although there is sign of slow dividend growth. I am still having doubt to consider it as one of my long term core holdings.

Is the price overheated? Is it just the beginning of an exponential growth path?

My guess is the current price is on the high side of its 'historical' value. I will trade 25-50% of my holdings along the anticipated trend line.

Aunloke, will take a look at multicolor. What is your concern in Hevea? I am not sure of its economic moat. I am not worry about their high gearing as they have taken appropriate action to deal with it. In another word, is their earning sustainable?

Sorry the last comment should read as "I CAN'T see any justifications"

Aunloke, BTW, do you hold any Hevea shares. I am looking at it, Any comments on it?

I don't believe there's a takeover bid. It's a family control business and I don't think they will sell. Fundamental is good with low PE. A re-rating to higher PE is possible. It is not an explosive business & I can see any justifications to this sudden hike in price.

Hi aunloke, I agree that it went up too fast. Took some money off the table.

Fb2, I prefer the price to stay low. I have no intention to sell and still looking at opportunity to accumulate more.

I expect the price to trend sideway. It is right to collect on dips. I think 3.75 or 1.50 after split is a fair price

Realistically the contribution from the expansion will not roll in until the last Q of 2015. Investing is just like any other business proposition. It need time to mature and patience is the essence.

My thinking is I will keep collecting 2c/Q for 6-8 Q in the meantime. That is not a bad deal because at 3.80 or (1.52 after split) the yield is still 5.26%.

After that we are looking at 60%-70% growth.

I agree with the management that share buy back is a waste of time. They are debt free and holding sufficient cash as working capital and for capex. Manageable borrowing will push up the ROE also especially when cost of fund is still low. Returning the earning to shareholders in the form of dividend is great. Let the shareholders have their say on how to use it. Use it to buy more shares in the company if you like it. Low amount of idling cash in the company also boost up the ROE. The latest annoual report also shows a steady growth in ROE in the mid 20+ average.

Management also indicated that piling will start in May or June. Credit to the management for spending more time in the planning rather than to rush into it. They are fully aware of the important of this phase of expansion to take the company to a new level.

http://klse.i3investor.com/blogs/kianweiaritcles/47219.jsp

The article above also shows that they are mindful of the challenges ahead

Hi Firebird, results & dividend are in line with expectation. No surprises which is good. I am confident that 5 sens/Q or 2 sens/Q (after Ex Split) is sustainable until factory 3 is ready. The real growth will come after the expansion.

According to my source, The AGM was crowded this year. More investors are looking at this company now and the management is watching this forum also. Ha ha

Bring the AGM to Ipoh! We have a lot of space here!

Very handsome dividend at 13.5 sens. 17.5 sens for the year. at 2.60, 6.7% yield. What else you want to ask for?

Sorry Guys, The above is referring to CCMDBIO

Very handsome dividend at 13.5 sens. 17.5 sens for the year. at 2.60, 6.7% yield. What else you want to ask for?

Expecting good results & dividend soon. They have been doing cost manangement exercise for some time perhaps seeing some positive results.

Fb2,thanks, will go through some of your recommendations searching for future shinning star

For short term I like CCM,MTDACPI & YOCB.

Dividend play will be Cscenic,CCM,CCMDBIO.wellcall & perhaps Tomypak

Firebird2, I am leaving tomorrow. Actually, I shall have more time looking at the market when I am not working in Melbourne.

Yes. Happy with Bkawan, Hupseng & Pintaras results. Expecting good results from Wellcall, CCM,CCMDBIO, Cscenic, CBIP, MTDACPI & YOCB

Any of the above is in your watchlist?

I was anticipating some good 3rd Q results to be announced in March.

Too early to buy ahaead?

Maybe, the hot weather we are having now argue well for its future sale?