Very good educational article.

Buying company warrant can be considered as investing as one can convert it to mother share whenever he wishes. Hence for me, whether a company is a good company matters.

Call warrant is pure punting in my opinion. I like to do punting to have a little excitement too, but I will never advise anyone to punt, unless you have a little advantage as Jay does, knowing what make up he value of a call warrant.

For punting of call warrant, the quality of a company doesn't matter as much for me, but its price movement in the near future matters more; is its share price going to rise in the near future, after considering everything such as premium, gearing/delta, time to expiry etc.

Note price doesn't equate to value, especially short-term price movement. Call warrant is basically short-term instrument. In US and other matured option markets, call warrant is what they term as option, and options are basically very short-term, and three months expiry or less are very common.

In this respect, good TA may be more important than FA, much more.

Posted by stockmanmy > Jun 4, 2017 06:31 PM | Report Abuse
maths teacher a lot of philosophies but no money.

No money? But how you know?

But one thing for sure. This maths teacher not only good at teaching maths. He can also teach self-proclaim accountant about simple accounting stuff such as what is enterprise value, what is IRR, what is risk and return etc.

He can also teach him about life, humility etc. which he so short of at his age.

There are two very strong supporters of you in i3investor. Listen to the words of Sslee, you will continue to gain respect, and also avoid the potential troubles you will likely to face. You will leave a legacy behind.

Listen to the words of the other makes you shiok,no doubt, but it enlarges your head and ego so much so that you don't know what you may be getting into.

You have enough money. More money may be shioking, but you do not need not make more in this way.

Understand the very basic of economics, the law of diminishing marginal utility.

Good sharing bluefun

Posted by kcchongnz > May 28, 2017 05:37 PM | Report Abuse X
Let us consult the most active accountant in this forum, the one and only Stockmanny.
Is the following statement extracted from the article correct?
"From the recent announcement, you can see that the company has received an initial of about Rm 60 million out of the Rm 400 million. Unfortunately, a large part of this profit was used to pay for the interest charges for the loan taken for its property development business."

Stockmanny, why haven't you clarify my question above since you promoted this stock so much?

Posted by stockmanmy > May 29, 2017 01:03 AM | Report Abuse
a project can give you $ 1000 per annum and yield you an IRR of 12%.
another project can give you $ 100 million per annum and still yield you an IRR of 12%
you will want the $ 100 million p.a. project over the $ 1000 p.a. project if you can get it.
there is some thing fundamentally flawed in maths teacher way of looking at things.
Businessman look at the money, follow the money...be direct about it.

I am an engineer by profession. I am a teacher teaching you this accountant on accounting stuff. But no matter how much i teach you, you just don't get it. And yet you still continue to bark here and there, "tearing your own face". Shame on you!

Let me teach you another accounting lesson.

What is IRR of 12% of your Jaks? Is this an expectation or an outcome?

It is just basing on estimation of future cash flows.

What if there is a financial crisis and banks pull back the credit?
What if Dong, the currency of payment, slumps 30% in the future?
What if the cost overrun by 30% for the power plant?
What if the Chinese partner makan you?
What if the inflation rate goes up to 10% a year?
What if the Vietnamese official ask you to pay more money to him, otherwise this cannot, that cannot?
What if risk free rate goes up to more than 10%?
What if the Vietnamese agency refuse to take your power supply or reduce your rate say if there is no demand for the power?
What if this and what if that?

Those are the risks we are talking about!

The outcome of your IRR, instead of 12%, becomes -10%!

What happen to Mudajaya's power plants in India?
Why was there such a delay?
Wasn't their expected IRR also in the teens?

What happen now?
How much money they have lost?
What is their IRR now? negative 20%?

All the things you talk about dynamite investing, panic moment, sailing, take high risk and sure high return are just talking cock!

Where got business sense? You kidding?

Let us consult the most active accountant in this forum, the one and only Stockmanny.

Is the following statement extracted from the article correct?

"From the recent announcement, you can see that the company has received an initial of about Rm 60 million out of the Rm 400 million. Unfortunately, a large part of this profit was used to pay for the interest charges for the loan taken for its property development business."

Posted by 稻田·* 片片绿青~粒粒芳香 > May 28, 2017 10:33 AM | Report Abuse
Good morning to Kiwi Man(kc)
Don't bother about him... Cant turnaround his mind easily. Don't waste time.

Good morning to you. Bila mimum?

You are right. Can't turnaround his mind. But that is not my purpose. Just want to do some social service by debunking some of the myths propagated by some self-interest parties, and educate the public.

But think of it, may be there is no point of doing so.

Posted by soojinhou > May 28, 2017 10:29 AM | Report Abuse

"Investing is not about head i drive Rolls Royce, tail I commit suicide." love the quote kc. Investing is about getting the highest return AT THE LOWEST RISK POSSIBLE.


Jin Hou,

That is exactly and precisely true.

Buying good companies at cheap price is one way. Buying good companies has high potential gain. Buying them cheap where got high risk?

Only ignorant people think about high risk high return, like Stockmanny repeating again and again everyday like a broken record.

Posted by Kukuman > Jan 4, 2016 12:47 AM | Report Abuse
Now you are talking about 2 years ago article. but you quoted someone analysis which you said was on 2015 Aug 3.
"Recently, I have received a recommendation from a fund manager and professional analyst to buy KNM at 57 sen on August 3 2015 as below. Oh my God, haven’t we gone through that before many times in the 1990s"
I will mark this comment of yours ! If KNM really go up, you should apologize and stop promoting yourself by running down on someone analysis.
Admit it ! that is your SOP! You are a person who like to promote yourself by finding fault on someone's analysis.


Kukuman, can you tell me what is the price of KNM now?

Posted by Kukuman > May 28, 2017 10:04 AM | Report Abuse
Teacher from kiwi is very angry. I feel your anger

I pride myself to be a teacher. I have been an engineer all my life and at different environment. But being a teacher, in teaching people how to invest safely and wisely, is my most rewarding job. Some more I can do it from NZ.

Now, you are welcome to discuss with me any investing matter, including your favorite Jaks.

Posted by stockmanmy > May 28, 2017 02:51 AM | Report Abuse
kc
one more thing.....
in stock market, buying turnaround stocks...( Sendai and Jaks ) when it pants out is more lucrative than buying perfect stocks of high NTA and low PE, strong Balance Sheet......the value investor dream stocks.


Let me ask a question, what if the "turnarounds" never turn around?

What is the probability of a company which has no experience in power plant development, but have to rely solely on its partner to execute it and its mercy?

what is the probability that a company which has been losing heavily in the past and recently, with huge order book, turns around with huge profit, also seemingly having huge order book, which justifies its price now?

Accountant, there is always two sides of a story.

Investing is not about head i drive Rolls Royce, tail I commit suicide.

Posted by stockmanmy > May 28, 2017 02:59 AM | Report Abuse
maths teacher looks down on IRR 12...but maths teacher can tell me what is average annual accounting profits of a US$ 2 billion project with IRR 12% ?
yes, there are business and execution risks ...but annual average accounting profits of a US$ 2 billion project is no laughing matter.


You claimed that you are a 60-year old accountant. Your accounting experience as an accountant must be 40 years, or more?

Isn't that shameful to ask an engineer your question above? Why don't you tell me?

In actual fact, you don't even know how to ask an accounting question.

Let an engineer teach you accountant about accounting stuff again here.

IRR is obtained by your initial cash-in in investing, and your final cash you can get from the project. In between you have more cash ins (more investment outlays), and some cash outs (share of the sale of power). With these periodic cash ins and cash outs, you iterate and obtain an IRR.

The above involves all cash, time value of money, estimations of future cash flows. Everything is CASH. It has nothing to do with accounting profits, as accounting profits has nothing to do with your pocket, unless you can actually take out those "profits" n cash, and pocket them.

Can you take out the RM400m construction profit and distribute to the shareholders of Jaks?

Your question on "what is average annual accounting profits of a US$ 2 billion project with IRR 12%?" is a stupid question from the mouth of an "accountant".

Disregarding the accuracy of the future cash flows projections, the relevant question is "Is an IRR of 12% commensurate with the risks you are taking for a power plant JV in Vietnam?"

Every company has his own what I call "hurdle rate", and every management has his own risk-reward decision. But for me, I would require a risk premium of at least 10% to 15% above the rate of borrowing. I don't expect you to have the same thinking of me.

So accountant, to avoid your self to become a laughing stock in the accounting community, stop asking stupid question, over and over again.

Posted by stockmanmy > May 27, 2017 09:59 PM | Report Abuse
good example, look at KC....want to be like kc?
Dares not buy Sendai at any price...dares not buy Jaks at any price......people makes 50% and 40% already......lol
Jaks IPP is progressing on schedule
Sendai turnaround is not yet reflected in March accounts yet...more to come, much more to come.
that is why some are successful, others are not so.
Let time prove who is right......


Stockmanmy,

why do you always have to drag my name in?
What is so great about 40% gain in Jaks when you keep on buying from RM1.50 to RM1.70+ with your own money?

Is 12% IRR that great for you when you have all the risk? do you know anything about risk and return? I doubt you have any idea at all.

How sure are you Sendai will make big money with the big projects when it failed to do so in the past?

You got crystal ball in front of you ah?

Why do you have to PLP until no shame at all?

And why always drag my name in?

Posted by ipomember > May 23, 2017 01:26 AM | Report Abuse
your required rate of return could be subjective compare to the company required rate of return as the company has difference stance? What is the IRR norm for coal-based power plant in Vietnam? I am sure they have done their research prior that. For the risks mentioned, i think the management has addressed well through their meeting with PBB analyst. Of course there are still some assumption but that is what business is afterall.

If I invest in a company, I do not simply accept what the management says. That is my style. No, I do not invest in this company. No, I wrote this to share with people here what I think, not to degrade the company. I like to write and share. I know many do not like me doing so, but I think there are some more mature investors who like to hear the other side of the story to make a better investing decision.

Note management is not the same as shareholders, and they have different interest, although often management wears two hats, but still their interest is not the same as other shareholders. I know this well as I was a corporate guy before.

I present my points here about what construction accounting profit is about, what is the risk free rate in Vietnam, opportunity cost, cost of capital and the various risks involved in the project. It is your duty to evaluate the management is doing the right thing, for you as a minority shareholders. It is not about whether "the management has addressed well through their meeting with PBB analyst". Well, that is what I think, looking at the business sense of it.

If you think your company is taking such a great project with such a great IRR, good on you. Go invest more. Sailang on it. You may soon become very rich.

Posted by CharlesT > May 23, 2017 06:52 AM | Report Abuse
Kc dont bully 61 years old retired senior ac clerk lah


Charles, look at who is trying to bully who. Hear it from a third party, a credible person.


Posted by Ooi Teik Bee > May 21, 2017 12:12 PM | Report Abuse
Someone is looking for every chance to attack KC and valued investors.


What I am trying to do is to have some discussions with this 61 year old accountant, on accounting and finance, who "is looking for every chance to attack KC and valued investors."

Posted by stockmanmy > May 23, 2017 12:41 AM | Report Abuse
and kc

please don't assume I know nothing because you really don't know any thing about me....just as you don't know the deatiled workings when Jaks MD says project IRR is 12 %.

ME: WELL, I THINK I CAN JUDGE YOU VERY WELL.
MY POST DOESN'T SPECULATE ON ANYTHING, JUST BASED ON WHAT WERE GIVEN SUCH AS IRR. MAY BE YOU CAN TELL US WHAT THE "EXTRA' THAT YOU KNOW.

They have teams of bankers, project managers and accountants going through every single item, and they have to present to the Vietnam government in such a way everyone is happy.

ME: WHOSE INTEREST BANKERS CARE OF? SO IF YOU ARE HAPPY WITH IRR OF 12%, THAT IS FINE. WHO HAS OBJECTION ABOUT THAT?

Jaks first went to Vietnam in 2006...imagine it is 11 years in the making. ..The guy is great and deserves his success.

ME: WOW, 11 YEARS ALREADY. REALLY GREAT!

Posted by stockmanmy > May 23, 2017 12:25 AM | Report Abuse

kc

you are an academician....trained to look down at IRR 12%...

ME:ACADEMICIAN? WHO? I AM AN ENGINEER. HOW MANY TIMES I HAVE TO SAY THAT? I WAS EVEN A LEAD CIVIL ENGINEER IN A POWER PLANT BEFORE.

TRAINED TO LOOK DOWN AT IRR 12%? WHO LOOKS DOWN? DID I MENTION I LOOK DOWN ON IRR OF 12%/ WHERE?

but details matter.......there are many ways to compute IRR, without looking at the workings, you just cannot say 12% is low.

ME; MANY WAYS TO COMPUTE IRR? WHERE YOU LEARN ONE? WHO SAYS IRR 12% IS LOW?

there is a third IRR which is even higher....remember $ 400 million of the equity actually came fom EPCC? That means the real equity is much smaller, and that translates into an adjusted real equity IRR which is even much much bigger.

ME: WOW, THIRD IRR! INCREDIBLE!

LET AN ENGINEER TEACH AN ACCOUNTANT A LITTLE FINANCE. IN A PROJECT FINANCIAL APPRAISAL, THERE IS ONLY ONE IRR. CASH IN, CASH OUT, BEGINNING VALUE, END VALUE, ITERATE THE DISCOUNT RATE TO FORCE THE BEGIN VALUE EQUALS TO THE END VALUE, YOU GET IRR. YOU MAY GET TWO VALUES, BUT ONLY ONE IS CORRECT.

COMPARE YOUR REQUIRED RETURN TO THE IRR. YOU THEN CAN DECIDE IF THE IRR IS GOOD.

YOUR REQUIRED RETURN DEPENDS ON MANY THINGS, COST OF BORROWINGS, BUSINESS RISKS, FINANCIAL RISK, CONFIDENCE OF EARNINGS AND CASH FLOWS ESTIMATES. IN THIS CASE, MANY OTHER RISKS SUCH AS CURRENCY RISKS, POLITICAL RISKS, PARTNERSHIP RISK, ETC.

Posted by stockmanmy > May 23, 2017 12:14 AM | Report Abuse
kc
you are just being naughty... I have to assume you understand simple cash flow projections and IRR.

ME: IT IS RATHER ODD THAT I AS AN ENGINEER UNDERSTAND IRR PERFECTLY WELL, WHEREAS AN ACCOUNTANT HAS SHOWN HE HAS NO CLUE AT ALL WHAT IRR IS WITH ALL THOSE STATEMENTS.


bottom line is as golden eggs says....it is all about execution and business risk.

ME: ISN'T MY ARTICLE SHARED ABOUT RISK AND REWARD, INCLUDING BUSINESS RISK AND EXECUTION RISK?

there is enough profits in the IPP to make Jaks MD the new Francis Yeoh and KYY a billionaire if it succeeds.

ME: WHY DO YOU HAVE TO BRING ALL THESE PEOPLE IN FOR DISCUSSION OF THIS TOPIC? DID I MENTION ANYONE OF THEM?

Posted by stockmanmy > May 22, 2017 10:33 PM | Report Abuse
kc

nobody force you to buy.

ME: WHO SAID WHO FORCED WHO TO BUY? JAKS BELONG TO YOU?

but lots of stuffs you just assumed....and starts to comment.

ME: WHAT DID I ASSUME? CAN'T I WRITE AN ARTICLE TO SHARE MY POINT OF VIEW? SO EVERYONE MUST LISTEN TO YOUR VIEW, AND YOUR VIEW ONLY?

eg...to reporters in Hanoi....what you want Jaks MD to say? that their equity IRR is very high?

ME: ????

on a project IRR of 12% ( before gearings)

ME: IRR 12% BEFORE GEARING? IS THAT IRR OF 12% ALL FROM JAKS OWN POCKET WITHOUT BORROWINGS?

......what would profits be on 3:1 gearing and 6% interest rate? Any ideas?

ME: EVALUATION OF A PROJECT IS BY IRR, NPV, OR THE CRUDE PAYBACK PERIOD.
I GOT NO IDES WHAT YOU ARE TALKING ABOUT! YOU TELL ME THEN.

even assuming 12%, it is nothing to laugh at with US$ 2 billion project.
ME: LAUGH AT WHAT? WHO LAUGH AT WHO?

12% means it doubles every 6 years......how many doubling in the concession period?

ME; WOW, EUREKA, USING RULE OF 72 TO EVALUATE A PROJECT. SENSATIONAL!

Posted by stockmanmy > May 22, 2017 10:20 PM | Report Abuse
kc
share market is short term in nature.
business men can be longer term in nature.

ME; SO WHAT ARE YOU TRYING TO SAY?

but who will believe you no money to make in a US$ 2 billion project?

ME: WHO SAID GOT MONEY OR NO MONEY TO MAKE? AND WHETHER IT IS US$2 BILLION OF $2 M?

Posted by stockmanmy > May 22, 2017 10:13 PM | Report Abuse
so kc...details matter....
project IRR 12% can transform into huge equity IRR once gearing ( borrowings) is taken into account.


Can you elaborate what you mean here?

"project IRR"? equity IRR? what is the difference?

How "borrowings" come into the equation of IRR?

Posted by r°Moi > May 22, 2017 08:20 AM | Report Abuse
You are talking like JAKS China Power Engineering Consulting Group Co Ltd Industrial and Commercial Bank of China, China Construction Bank Corporation and Export-Import Bank of China all have no ideas how to evaluate a project... you who charge rm50 subscription fee is the only one in the whole world who know.... ego much much bigger than the super investor... and also definitely can do slander


did I say CPECC "have no ideas how to evaluate a project"?

did I say, "you who charge rm50 subscription fee is the only one in the whole world who know"?

Slander? which part of my article is "slander"? Show me and I will delete this post.

As a matter of fact, i have written about 300 posts in i3investor, which article, out of 300, is slander? Show me and I will delete them.

Or is it you who slander, ah Moi?

Posted by stockmanmy > May 22, 2017 12:38 PM | Report Abuse
you know what project IRR of 12% at 75% borrowings turns into returns on equity?
anyone knows what IRR of 12% on 7 billion ringgit translates into in term of profits?
It is huge...very very huge.
kc should have the brains to do the maths.


You really do not know accounting, project appraisal stuff, do you? But thanks for the information about the IRR.

I do not expect non-accountant to know what IRR is. A doctor is good at curing people. Housewives good at bringing up children etc. Engineer good at building power plant. I was a lead civil engineer before in a RM2b power plant project. But I really shocked a 60-year old experience accountant do not know what is NPV and what Is IRR.

Do you know what is opportunity cost? What is cost of capital? What is risk free rate? What is risk premium? What is risk and reward, etc.?

Do I need to do any calculations when the relevant number, the IRR is given and calculated by those in the industry?

Is 12% IRR good for a power plant project in Vietnam with all the risks I mentioned in my post?

those are the pertinent questions, accountant.

For those who are interested in an English version, you may read this,

https://klse.i3investor.com/blogs/kcchongnz/104256.jsp

wonderful analysis and highly informative.

paperplane2016 Kc. How you view steel sector now? Appreciate your inputs

I am no expert in the steel sector, sorry. I personally do not like this type of high capex and competitive industry. There are many who make good money though investing in this kind of stocks, but that was from a year ago.

I personally have made some money, not for myself, but for a friend, on Choo Bee. I find Choo Bee is different. It has consistent earnings and cash flows, and a very healthy balance sheet, with potential of positive corporate exercise. It is a low risk investment in that sense.

stockmanmy I have 5400 posts and several dozen blogs.....we can discuss on any of those blogs and posts any time if only you point them out to me.


Actually it is really incredible. In the 5400 postings and several dozen blogs (?????), you only do three things,

1) Talk cock, barking
2) Ridiculing any value investor
3) PLP,PLP big time!

so what else to point to you?

cheahsk Hi KC, Can you please elaborate a little on the NAV of a portfolio you just mentioned. What does this NAV tell us,how to calculate it and apply to our investment.

I was trying to find out if that "accountant" is really one he claimed to be. alas, he can't even calculate simple compounding.

It was just a test to find out fake accountant, and it works.

A 16.1% in about 4 months will have an annualized return of about 48%. If, only if, the portfolio with that net asset value, NAV, grows by 48% in 30 years, it will grow to RM12.8 billion. That would be the highest return anyone can get in history!

So, what is wrong with my portfolio which returns 16.1% in 4 and a half months?

I am not saying the portfolio can grow at that fantastic rate for 30 years, but the question was posted to someone who bark and bark and claimed that he is an accountant. But can you believe, he can't even compute!

Even if my return so far is just half of that, say 8%, the annualized return would be about 24%. The RM100000 will grow to RM63.5m in 30 years. I would be better than the best long-term return, someone like Walter Schloss.

So "accountant", what is wrong with my return so far?

Why do you need to bark and bark?

stockmanmy kc and raider are not much different from JJPTR.
Got evidence in the bottom 10 portfolios of this year ibot 230 portfolio still cannot accept the evidence.
Am I the only one saying the Emperor wears no clothes?
I call that...totally and completely brain washed can no longer see reality.


The return of my portfolio is 16.1% in 4 months and 2 weeks.

"Accountant", go ahead and calculate how much RM100000 will balloon to using the annualized return of this portfolio in 30 years.

Prove to us that you have at least worked as an accounts clerk before that you know how to calculate. I have already given you 14 hours to do that.

Then we know who wears clothes and who doesn't.

stockraider RAIDER NOT TRY TO CONVINCE MAMMY.....BUT RAIDER DON WANT HIM TO MISLEAD.....INVESTORS....THAT VALUE INVESTMENT IS LOUSY LOH...!!
IT IS HIGHLY ESSENTIAL....ESPECIALLY NEWBIES TO GET HIS GROUNDING RIGHT LOH.....!!

That is what I consider good sharing, noble intention, and from a well verse investor.

Jon Choivo kcc,
No point arguing, why try convince him or to win. Whats the point. Take the time to find new stocks better.
The key thing is to find out if you're right, and if the other person has anything worth saying.
The first point, i think you're quite safe. The second, manmy might occasionally have something worth thinking about here and there, but no need to argue with him.

I am neither trying to convince him (what for?), nor to win (no point as you said). But this snake-oil salesman is getting really too much, ridiculing every person who try to share value investing, non-stop, but without any substantiation. On the other hand, he keeps on PLP. That is ok to me too, but not keeps on ridiculing others, engaging in personal attack.

But you are right, it is really counter-productive engaging him. Sien ah!

stockmanmy to all i3 members, students of kc, freshies to the stockmarket....those just bought a value investing book
so you hope to make money and take no risk ?
I say baloney to you.
No risk no reward is the eternal truth about stock market.
don't let all those salesmen and value investing books con you.
yours is to handle risk, not to avoid risk.


This is another case of "accountant" simply bark here and there.

So did this "accountant" invest in JJPTR? High return,30% a month.

In this type of cases, it is true that high risk high return. But in investing in the equity market, is that always true?

You have repeated this again and again thousand times in i3investor. Where the hell is your substantiation? Was there a single one?

Do you really understand what return is , and what risk is in equity investing?

You don't even know how to do compounding calculation, so how can you understand what return is?

Yes, finance and investment text books say high return comes with high risk. That is generally true when comparing different asset classes; for example equity and bank deposit. But since when you believe in finance text book? What you have is what the hell X files, X films and the like.


Well, for me, I say high return in equity doesn't come with high risk. Instead it is on the contrary. There is a body of research showing that if you do read, instead of bark.

I had even wrote about what this risk and return are 4 years ago in i3investor here,

http://klse.i3investor.com/blogs/kcchongnz/44334.jsp
http://klse.i3investor.com/blogs/kcchongnz/44336.jsp

My personal experience shows that the high returns of my portfolio shown in the link above doesn't come with high risk, whatever measure of risk you are using.

Show us in an article, what the hell you understand about risk and return.

Well, if you don't know,it is actually ok. I don't expect you to know, and I do not expect many here to know, it is ok as everyone has his own skill, but you kept on ridiculing value investor, non-stop, without any substantiation. You really are a troll.

Posted by stockmanmy > May 14, 2017 01:23 AM | Report Abuse
kc
I am not interested in your test.
what interests me is to find a stock with good factor X.

Well, it is up to you prove your credibility.

Factor X? In Modern portfolio theory ah?

What the hell is that? X file kah? Alien ah?

Posted by stockmanmy > May 14, 2017 01:15 AM | Report Abuse
kc
diversification is a very important part of portfolio theory and compounding effects of portfolios.....any CFA student can attest to that.


Another talking cock.

What the hell is "compounding effects of portfolios"? Got such thing in modern portfolio theory ah? Incredible from the mouth of an "accountant"! OMG!

Your CFA son told you that? You taught him ah?

Stockmanny, sorry times up. With more than half an hour, you can't even compute what 100000 will become using compounding. This is a second test that you have failed as a so-called accountant. The first one is computation of enterprise value, remember?

Compounding is very simple maths, though it is a very powerful thing. It doesn't need an accountant to do it. A high school student will be able to do it. In working, a junior accounts clerk can do it easily.

For all this while, you are only doing two things in i3inveor; PLP and talk cock. Almost all of us have great suspicion that you are an accountant as claimed by you. But you haven't shown us any clue that you are close to one.

So, you can't blame us for having great doubt of your claim, can you?

Good night.

Posted by stockmanmy > May 14, 2017 12:58 AM | Report Abuse
kc
I am more interested in you telling us how such a focused portfolio of yours can even start to talk about compounding?
what has happened to all the stuffs you learn while still a student?


Come on, show us that you are truly an "accountant". Show us what is the value of 100000 in 30 years time compounded with an annualized return of 16.1% of 4 months and two weeks.

Whether a portfolio is diversified or not has nothing to do with compounding, "accountant". You don't need an engineer to tell you that, do you?

Posted by stockmanmy > May 14, 2017 12:38 AM | Report Abuse
KC
At attempt to talk about compounding needs a very diversified portfolio. A truly well diversified portfolio such as mine
103) stockmanmy +33.1% 133050.38 http://klse.i3investor.com/servlets/cube/stockmanmy.jsp
14% LEONFB 0.740 0.465 25700|14% AIRASIA 3.480 2.290 5200|13% SAM 6.960 4.900 2400|12% AAX 0.500 0.360 33200|12% SCIENTX 8.720 6.700 1800|9% AEONCR 18.040 14.360 700|9% SCGM 4.290+0.02 3.400 2900|9% MAGNI 5.100+0.06 4.190 2400|7% CSCSTEL 1.990 2.150 4600 (132779.00:271.38|240.12)
At least, my portfolio is more qualified to talk about compounding.


First big problem with you of your self-proclaimed "accountant" status is very clear here.

Compounding is about what the value will be if certain sum of money earns a certain return over a period of time. It has no mathematical relationship to portfolio diversification or what not.

Now i am still waiting for your computation of the value of RM100000 compounded over 30 years annualized from a 4 months and two weeks return of 16.1%.

Come on, I am giving you a chance to show us you are really an accountant or not.

Do curi ayam by asking your son to do it for you. It is shameful to do so.

Posted by stockmanmy > May 13, 2017 11:58 PM | Report Abuse

silom
it is not darts or random.....
192) kcchongnz +16.1% 116122.59 http://klse.i3investor.com/servlets/pfs/71070.jsp
22% FIBON 0.695 0.555 37000|21% MAGNI 5.100+0.06 4.190 4800|20% FAVCO 2.790 2.380 8400|20% FLBHD 1.710 1.600 13700|16% LATITUD 5.350 4.900 3500 (116071.00:51.59|239.41)
kc calls himself a value investor.


60 year self proclaimed "accountant",

Tell me,what is the problem with a portfolio of 5 value stocks returning 16.1% in less than 4 and a half months?

Let me give this so-called accountant a test.

Can you compute the NAV of this portfolio with RM100,000, getting this annualized return for a period of 30 years? You know value investors invest in this type of value stock for long term.

Come on, show us you are indeed an "accountant" that you know how to do some simple computations.

Posted by stockmanmy > May 13, 2017 05:18 PM | Report Abuse
Beary, members of this forum...students of KC, value investors all over the world
As a value investor....this is what you get.....it is no accident. It has all the characteristics a value investor wants in his portfolio.

192) kcchongnz +16.1% 116122.59 http://klse.i3investor.com/servlets/pfs/71070.jsp
22% FIBON 0.695 0.555 37000|21% MAGNI 5.100+0.06 4.190 4800|20% FAVCO 2.790 2.380 8400|20% FLBHD 1.710 1.600 13700|16% LATITUD 5.350 4.900 3500 (116071.00:51.59|239.41)
https://klse.i3investor.com/blogs/ibot/122712.jsp


so what is wrong with value investing with 16% return From Bursa in less than 4 and a half months, investing in value stocks with very little risks of stable earnings and cash flows, healthy balance sheet, and good dividend yield?

Investing is for long-term. If (yes, if only)I can maintain this return consistently with this CAGR for 30 years, I would be one of the top 10 performers in investing in history. So what is wrong with it?

Are you really that bloody shallow in investing? That is incredible!

Posted by Stckmm88 > May 13, 2017 09:01 AM | Report Abuse
Since you claim that your roi so high, do you listed as top 30 shareholder in any of listed stock?


So only those who are major shareholders of listed company can share knowledge and experience?

So how many can share in i3investor with your criteria?

So only very rich people can talk?

So all rich people must be respected and those who are not get lost?

Where do you get your education from?

Posted by stockmanmy > May 7, 2017 10:29 PM | Report Abuse
Billionaire Mark Cuban bought a lot of bitcoins at the low.
He didn't need audited accounts for that.


Buying bitcoins need audited account one ah? What kind of account is required, Mr Accountant?

Posted by sell > May 7, 2017 09:00 PM | Report Abuse
194) kcchongnz +13.5%
Ranked 194 also must promote loud-loud? Why top 3 no promotion like KC?

Is there anything wrong of obtaining 13.5% in 4 months?

Promote loud-loud? Got sound ah? Promotion of what?

Posted by stockmanmy > May 7, 2017 08:53 PM | Report Abuse
valuations of audited accounts can be taught in universities and become popular memes.
but it is valuations of X factors that are priceless.


Valuation of audited accounts?

What is that,Mr Accountant?????

Got teach "valuation of audited accounts" in university kah?

Valuations of X factors? You have written thousand times. What the hell is that? X factors? X factors? X factors priceless?

OMG, I am a head full of dew water!!!!!

stockmanmy translated...there is a time for every strategy.
This is X factor time

Yeah, in bull market, "dynamite investing."

In bear market,"panic moment".

whatever they mean!

Posted by musangfoxking > May 6, 2017 07:39 PM | Report Abuse
aiyoh, in bull market we not interested whether the company is good or not!!! we just want to hit n run!!!!!!!


Good on you and best of luck, real luck. You need it. Don’t go out without it!

Posted by 3iii > May 6, 2017 07:25 PM | Report Abuse
>>>Posted by PlsGiveBonus > May 6, 2017 07:21 PM | Report Abuse
If anyone is interested in dividend of 5-7% better put in EPF which is sure gain and no way can go down and loss money
Asb also a good alternative.<<<

I think you failed to understand KC's article. :-)

3iii, you are right. i also mentioned in the article this,

“In value investing, either you get it, or you don’t”

Posted by PlsGiveBonus > May 6, 2017 07:10 PM | Report Abuse
Bull market time dividend stock is the least favorited and cannot go up
Bear market time dividend stock also need to drop
Talk about value trap by the means of dividend


Haven't I shown you that the share prices of those dividends stocks in this article that they have gone up in the bad market in 2016, and that they continue to go up during the bulls in the first three months of this year?

What value trap you are talking about?

What evidence you have for your statement?

Posted by speakup > May 6, 2017 05:56 PM | Report Abuse
KC, what is your opinion of BPLANT which consistently pays about 8% dividend/year?


I have bought this stock a few months ago and earn good dividend and capital appreciation. Still keep it.

Posted by greatnz > May 6, 2017 05:54 PM | Report Abuse
hi kc, thanks for your sharing. readers would benefit more by reading your articles, rather than those hot tips.
i have been following u for the last 3 years. i have a small request. could you do a write up about focus lumber? because it is in your Stock Pick 2017 and we would like to know more about the fundamentals, ROIC etc. thanks again.
have a good weekend.

Glad that you found value in my articles. They are free too here.

Focus Lumber is a magic formula stock, high ROIC and low EY. it is also a good dividend yield stock and good cash flows, and with a clean balance sheet.

It is hence a very safe stock to invest for long-term. It is unlikely to go wrong in your investment.

However, it may not be exciting stock which does not have that kind of fantastic growth prospect due to its business nature.