Posted by winston1 > Sep 14, 2016 01:56 PM | Report Abuse
I have invested some RM130k in Public Mutual using EPF over the past 10 years with current value at RM205k. Returns 75% for the period. It all depends on what funds you have invested.


You are one of the lucky ones investing in unit trust. However, your return in CAGR is only 4.7%, way below EPF.

So if you withdraw EPF and invest in it, then you become the unlucky one as the performance is substantially below EPF return.

Posted by Hiu Chee Keong > Sep 14, 2016 08:52 AM | Report Abuse
why need to debunk DCA at the first place ? it didn't lie to anyone, and didn't miss-lead anyone, the concept is simple straight forward. If one miss-understand it and never try to understand it at the first place, then it is not DCA's fault. Since we can't time the market, we don't know when it's going to be up or down, so we put in money regularly. If market keep going down, whether DCA or one lump sum will go to hell anyway. and if market keep going up, both one lump sum and DCA also make money. yes, long term market is going up, but if you put one lump sum and happen to buy gold when it's 1800, how many year you need to just break even ?


It will be interesting to watch the video and do some exercises on DCA to see if DCA is a Holy Grail in investing, or is it just a myth

https://www.youtube.com/watch?v=spQFSjSvzwo
http://www.moneychimp.com/features/dollar_cost.htm

Posted by batman11 > Sep 13, 2016 06:10 PM | Report Abuse
To prevent getting "slaughtered" by the fund house or the market, you can consider to invest in 0% front loading KLCI tracker fund. We have RHB KLCI Tracker Fund to meet your need. Buy handsomely when KLCI index moves above its SMA 200 line and sell when long term up-trend becoming reversed.


The long-term return of tracker fund will mimic the return of the broad market, less the annual management expense ratio. You can actually mimic the broad market return by buying the component stocks of KLSE, without having to pay the management fees.

Then you are talking about market timing here which is not for unit trust, which should be long-term investment to get any decent return.

Posted by Hiu Chee Keong > Sep 13, 2016 08:21 PM | Report Abuse
Some of my friends asked me why other people make moneys investing in mutual fund but they lost. Then i asked them did they put in money every month or regularly, they said no, they only put in one lump sum once only. No wonder, the power of mutual fund is dollar averaging with regular investing. If you only put in one lump sum, then that's depend on luck, if you happen to invest when the market is low, then you win, but if you happen to invest when market is high, then ....god bless you, :D


Dollar cost averaging (DCA) has been long debunked in personal finance. The long-term return of the stock market is up. you can't possibly get higher return over a long period by drip feeding your money, compared to invest in one go when you have the money.

DCA, however, is a safer strategy though, for those people who can't sleep well when the market is down.

Posted by ks55 > Sep 13, 2016 09:50 AM | Report Abuse
If you think Unit Trusts suck, wait till you see the Insurance companies' life policies.
No more guaranteed cash value (or surrender value), but the value of the units you have at the prevailing price.
Insurance companies will not take care of your interest, but their own backside.
This is the same as Public Mutual.


Insurance life policy, those participate in the profit ones, has two components; one is life coverage and the other investment. The investment return will probably mimic that of unit trusts or managed fund. The killer is the marketing cost. Insurance agents are rewarded with a few hundred percent of the annual premium paid. With this taken straightaway from your policy, how can one get good return from the investment portion of the life policy?

It is just common sense. However, few policy holders understand it. Even licensed financial advisors, not to mention insurance agents, either they don't understand it which i am not surprised, or they deliberately don't want to know.

Sorry, I am just being very direct. Of course there are also some good and knowledgeable licensed professional financial advisors around, but they are far and few.

Posted by Bruce88 > Sep 13, 2016 09:30 AM | Report Abuse
It is easier to say, to select the right fund is never easy. May be KC can shed some light on this subject..


Well said.

The problem is "right fund" now can be "wrong fund" next year. Few, very few fund managers are consistent. Look at the fund manager of icap. He is supposed to be the oracle of Bursa. But how well has he been performing the last few years?

Having said that i remember Eastspring and Kenanga Growth fund have been a little more consistent.

Posted by Hippo Buy Signal > Sep 13, 2016 12:41 PM | Report Abuse
From KC Chong....
Question:

Past records do not predict the future performance. Sometimes this fund good, sometimes that fund good.
A person with no experience in stock market, how to know which one to choose?
I don't think unit trust is the straight forward answer to those without knowledge. I have seem people made huge loss from unit trust. Then people will say about Dollar Cost Averaging, must select the the best unit trust, etc. Same question again, how do a person without knowledge know how to choose.
If you teach them, then better teach them stock market. And if we teach them, then they will know be categorized as "retail investors who have no knowledge"



Me: Well said. Can't agree more with you.

Posted by 7210 > Sep 9, 2016 07:18 PM | Report Abuse

Posted by kcchongnz > Sep 7, 2016 09:52 PM | Report Abuse

Posted by 7210 > Sep 7, 2016 02:18 PM | Report Abuse
how about MISC? MISC also paid good dividends from 2011 till 2016. With good fundamentals, and trading at book value. what is your view about MISC?

Interesting. Can you check MISC with the 8 criteria mentioned in the article and as appended below, and share with us?

In 2015, 1)DY=3.9%, 2)dvd payout ratio=53%, 3)capex/NI=51%, 4)earning growth=3.4%, 6)roe=6.95%,roic=11.4%, 7)dvd/fcf=63%.



Good one. But it doesn't seem to fulfill the criteria 4, 5 and 6.

MG9231, thanks for your comments. Words of an experience investor.

Posted by 7210 > Sep 7, 2016 02:18 PM | Report Abuse
how about MISC? MISC also paid good dividends from 2011 till 2016. With good fundamentals, and trading at book value. what is your view about MISC?

Interesting. Can you check MISC with the 8 criteria mentioned in the article and as appended below, and share with us?

Posted by wkitwing > Sep 7, 2016 12:00 AM | Report Abuse
how about favco?stable dividend stock but gloomy outlook on O&G sector eventhough with good fundamental.so what is your view for this counter,kc?

Investing is about the future. However, the future is unknowable, unpredictable,and full of uncertainties.

You may use the past as a guide, and in FAVCO's case, it could be a good guide. Look at how they have been making money and with cash flows all these years. Look at its balance sheet. It can't lie.

Crane business can be flexible. Less oil and gas, may be more in construction cranes, wind farm etc.

Eventually it is the price Vs value which determines your return on investment of part of a business of a company.

Posted by nokenzo > Sep 5, 2016 09:49 PM | Report Abuse
KC, we are so eager to meet you. I felt ashamed when you paid for our cappuccino. Next time, you just sit back and order what you want. We or at least I shall take care of the rest. Hope we can meet regularly in Penang. Nicholas, I'm eager to meet and get to know you, now that I know you are from Penang. Dear "classmates" of Penang, shall we have regular dinner cum meeting?

I am keen to go to Penang and we do go up there occasionally for hawker food. We shall meet again, definitely.

Posted by paperplane2016 > Sep 5, 2016 06:08 PM | Report Abuse
good sharing by KC. Never know Malaysia so many rich ppl wah


Thanks for your comment, but I don't think I talk about any rich person in my article. Happy people yes.


Happiness is the ultimate goal in life. Good to be rich, but being rich cannot buy happiness. I have seen it all over.

Posted by Bizfuneng > Sep 5, 2016 10:00 AM | Report Abuse
Hi Sifu KC, din know u was in Iph having breakfast. If I had known, I wud had driven to Ipoh. It wud be my honour to meet u face to face if got the opportunity. I read many of ur good articles and very appreciative of ur kind sharing.


Thanks for your kind words. That is part of the motivation for what I am doing now. We will have the opportunity next time. May be you can come to one of our gatherings next time.

https://youtu.be/OFFRDtmWeso

Posted by Yvonne Wanyoyo > Sep 4, 2016 11:28 PM | Report Abuse

老爸，谢谢你在这里留下你的印记～～安息


Yvonne, Your father had left behind many good comments in i3investor. I am one who is very appreciative to him about his numerous positive comments on my articles.

My condolence to you and your family, and may he rest in peace up there.

Posted by donfollowblindly > Sep 5, 2016 03:21 AM | Report Abuse
Why must kcchong(from nz? not Penang?) friends treat him? If he really make a lot of money he must be very rich and should treat his friends instead.


I do earn satisfactory return from long-term investing in the stock market for the last few years, but as I have mentioned in the article that I am not rich. Well, it is happiness the ultimate goal of our life, and being very rich can't buy happiness.

I did pay when I went out eating with my friends in Penang, but most of the time, they wouldn't let me pay. So it is not my fault.

Yes, I am a resident in NZ and have lived in NZ for some years, but I am a citizen of Malaysia.

Duit

"May each day be blessed
With all sorts of wonderful things;
Like the comfort of love and the joy of hope
And the warmth that having a good friend brings"

Posted by resilient911 > Sep 5, 2016 09:54 AM | Report Abuse

(( In Bursa, more than 80 percent of the players are institutional investors, investment bankers, insiders, syndicates, manipulators.))

Means potential 80 percent may lose money?


Imaging you play mahjong with three others who are "old birds". Over a long rounds of game, whom do you think will be the loser?

Posted by sense maker > Sep 1, 2016 11:21 PM | Report Abuse
Increase or decrease in the number of shares (and company-issued call warrants) WILL NOT add any value to the company under ALL circumstances as the Net assets per share of the company will decrease and increase correspondingly.
They are all exercises of futility.


How many stock market players out there have this type of wisdom? Very very rare. That is why there are many suckers come and go from the stock market.

In fact I would go further to say this type of corporate exercises have very damaging effect on the small retail shareholders

1) Company pays million to investment bankers to carry out these exercises, reducing the claim of the shareholders.

2) Big shareholders work hand-in-hand with insiders to issue this additional papers to benefit themselves, of course this must be at the expense of someone else you know who.

No, I am not referring to Gadang, but many penny stocks splitting their shares with so called "free" warrants as "free money", or to make them "more liquid". (wah so good one ah, got free things in investment one ah?)

In Gadang's case, I don't see any value to be created either, hopefully it "unlocks" the value of the company.

"In all market dynamics, the warrant will always trade at a premium or "out-of-the-money" to its mother shares because of its inherent elasticity. It is this elasticity or leveraging power that attracted investors' enthusiasm, and they are willing to pay a premium for it while at the same time forgoing all dividends that only the mother shares are entitled for."


What kind of statement is the above,

1) trading at a premium is termed "out-of-the-money"???

2) That warrant must be traded at a premium while at the same time forgoing all dividends?


Hevea warrant, at 89.5 sen, with a conversion price of 25 sen, is deep-in-the-money. It is nonsense to refer it as "out-of-the-money" if a warrant is traded at a premium. In-the-money or out-of-the-money of derivative depends on the underlying share price and warrant's exercise price, and it has nothing to do with premium.

underlying share price > exercise price is in-the-money
underlying share price < exercise price is out-of-the-money

for the deep-in-the-money warrant, which Hevea wb is, there is little time value as most of the value depends on the intrinsic value of the warrant. Hence Wb may not be necessary to trade at a premium, especially the gearing is not much. In fact, warrant is often traded at a discount when there is an impending dividend, which erodes the value of the warrant.


"And this has just been aggravated by the not so pleasing Q2 Result of Heveaboard Berhad."



Tell us, what is "not so pleasing Q2 Results"? Please elaborate.

Excellent article.

Posted by duitKWSPkita > Aug 21, 2016 10:33 PM | Report Abuse
KC Chong sifu.
DANCO got kangtao Bo after your screening?
Terima kasih.
Come to Aus we meet up. I buy u Teh Tarik n we bla bla bla


Duit my friend,

Sorry don't know DANCO, and tak ada "kangtao".

I like your last sentence. In October, Sydney?

Posted by chongkc1957 > Aug 22, 2016 08:39 PM | Report Abuse

Kcchongnz I still do not think Koon Yew Yin will be sostupid to sell because the fair value is easily RM2.80++. Unless his advisors are useless or he lost his mind!


What do you mean by "fair value"? Is it cast in stone?

Have you heard of "the Golden Rule" in investing which has been repeated again and again?

Posted by danielng > Aug 22, 2016 08:56 PM | Report Abuse
Any advice on property companies sifu? For instance IGB and IJM.

These two companies are great companies.

Just a sweeping statement here,

IJM is probably the best construction companies. Property not very good prospect right now, unless at good locations.

IGB has a lot of hidden assets. It is a matter of unlocking and catalysts. For some, or most people, they do not like to wait.

Eventually everything boils down to price versus value.

Learn how to value a business.

Posted by tianjin > Aug 22, 2016 08:06 AM | Report Abuse
Dear master Chong, you have in the past wrote an analysis on Elsoft , the latest Q2 result was just released last Friday , it was quite a significant set of result compare to correspondent period . Would appreciate your guidance , opinion and views on the company financial strength and the current share price valuation . I am your ardent follower , this is because your views are always modest with good fundamental and financial insight . Thank you for all the advice and sharing master Chong .


Last quarter result was excellent. But bear in mind that the earnings of small companies are always very volatile. And take note that never overpay for too much for some growth expectation as I have discussed in the post here.

Happy investing.

Posted by chongkc1957 > Aug 21, 2016 02:43 PM | Report Abuse
Kcchongnz what do u think of the share accumulation by Mr. Lin last week?
http://klse.i3investor.com/blogs/Goodstocks/102563.jsp


Major shareholder accumulating is always a good sign. But don't forget another major shareholder will sell if the next quarter result drops by just 1% in profit.

Posted by benjamin2013 > Aug 21, 2016 12:13 PM | Report Abuse
Kcchongnz: At RM1.72 now, I think Focus Lumber is a great value stock to invest for long term. But why is there no interest in this stock? Once bitten twice shy?
Couldn't agree more KC. Its a great value stock to invest for the long term. Net cash of 86 sen per share is enough to pay 15 sen dividends for the next 5 years. Plus cash yield is >10%, which is twice your requirement. A NO-BRAINER INVESTMENT INDEED!
Its a good sign that major shareholder and executive director Lin has begun to acquire shares in Focus Lumber. Thanks for your sharing.


I think Focus Lumber is good for long term.

But bear in mind that if the next quarter result comes out and if its profit drops, some short-term players will sell relentlessly without bordering anything else, and with that margin calls can happen too.

But investing should always be long-term.

Posted by Bizfuneng > Aug 21, 2016 10:14 AM | Report Abuse

Noted Sifu KC cautioned don't only look into the wonderful profit growth story and beautiful operating numbers but also considering not to overpay the share even from a good company. From the DCFA Sifu also worked out the intrinsic value of RM4.15.

Now taking into consideration of latest Gtronics share price of 2.90 on 20 Aug 2016, we now hv a MOS in the reg of 30%. Does Sifu think this is an opportunity to pick up Gtronics after recent share price dived down?

Aso from Sifu Ricky deep dived analysis the reason for Gtronics financial predicament was due to smartphone market probably has approached its saturation stage. So should we now considered there is fundamental changes in Gtronics and we should not invest in this company further until new set of positive fundamentals come up.?

On one hand we seem to hv good MOS and on the other hand we hv alarm bell calling get the hell out! How to handle contradicting inputs? Appreciate both Sifus further calrification and guidance.



The intrinsic value worked out by me at RM4.15 was based on its best operating numbers and earnings that was in 2015, and earnings growing 15% for the next 5 years, with the same operating efficiency. With the possible change in fundamentals, that IV is no longer valid, in my opinion.

Posted by iamsoonoob > Aug 21, 2016 05:21 AM | Report Abuse
hi kc,how about chinwell?the metric valuation for chinwell is good but the company future prospect is bleak due to brexit and the pollution case in its vietnam plant?but then again metric valuation is useless when we dont know about the future pospect?

Yes, investing is about the future, though the past may be used as a guide. The future of some companies may change drastically if there is a policy change too.

Posted by Blacksails > Aug 21, 2016 04:18 AM | Report Abuse
How about PBBank? Is it too high price to pay for this stock that many retail investors love? Is it a bad investment considering its high price compare to Maybank?


Most people look at price only and disregard value totally.

Look at things like ROE and P/B to make a judgment.

When Globetronics announced its fantastic result for year ending 31st December 2015 on 23rd February 2016, I did take a good look at Globetronics with the intention to invest in it.

Earnings per share improved (again) by about 15% to 25.3 sen per share. ROE and ROIC were again great at more than 20%, more than twice its costs of capitals. Cash flows were great too. This is what I would classify as a great company.

However, bear in mind a great company is not necessary a good investment, provided that it is selling at a reasonable price. So was Globetronics selling at a reasonable price at RM5.95 at that time?

PE ratio was at 22.3, not really expensive as the company has excellent operating numbers. However, Enterprise value was 17 times earnings before interest and tax. This is definitely on the high side for me as it is two and half times more than I would pay for an ordinary company.

I did a discount cash flow analysis from the fundamental aspect assuming growth is internally generated through return on capitals, assuming a bold 15% growth for the next 5 years and 5% subsequently. I was only able to get an intrinsic value of RM4.15, way below its price of RM5.95 at that time.

With that market price, investors were expecting Globetronics would continue to growth at very high rate of more than 20% as before, and with margin expansion and higher return on capitals, and hence willing to pay a high price.

I gave it a pass and gave up the idea of investing in it.

Shortly after that, the growth expectation did not materialize, and with the high price paid, it was a double whammy, and the rest is history.

Great company becomes bad investment when people overpay for it.

Growth is good. But bear in mind it is just an expectation. Don't overpay for some "expectations".

Posted by duitKWSPkita > Aug 1, 2016 01:14 AM | Report Abuse
Liked!
Wao. KC Chong u really read a lot of books. Well done!


Good investment knowledge, philosophies, methodologies and mind set necessary for successful investing are from the super investors are found in books.

Very few super investors do not read ferociously.

Posted by ipomember > Aug 1, 2016 04:28 PM | Report Abuse
As at 30th July 2016, I have purchased a diversified portfolio of 15 stocks for you as shown in the attached Excel file. Focus Lumber was cut loss and sold off after a drop of 18.5%.
wondering why cut loss? isn't it share price drop is a good things for a value investor for you and hence you should instead purchase more?


Purchase more even if you may be wrong in your assessment? That is not what value investing is, definitely not.

No, I am not sure if my assessment was wrong. I still don't think so.

But I did give three reasons why I sold off the shares. Any comments on those specific reasons?

Posted by valuelurker > Aug 1, 2016 02:54 PM | Report Abuse
Come on Chong, you can do better. Tell us something we don't already know.

Do better? In what way?

How do I know what you don't already know? Investing is difficult. This is even much tougher

Posted by Shellhouse > Aug 1, 2016 01:39 PM | Report Abuse
Dear KC, i cant seem to find any attached excel file. Please advise.

Sorry, that is confidential

Posted by oregami > Aug 1, 2016 08:47 AM | Report Abuse
May I know what r the PE in sgx hkex when market crashed in yr 2008?

You should be able to goggle the. Look for the time just before the crash. I guess it should be in the region of above 25.

Alphabeta,

The way you are doing is the withdraw is a gross amount when you use a gross return of 4%.

This gross amount cannot buy the same thing 10 years into your retirement. A burger may cost double it is now 15 years later.

We should work in term of real number, amount taking inflation into consideration. The real amount can buy the same thing every year.

Hence you should use the real return, instead of the gross return.

Real return = (gross return - inflation)/(1+inflation rate)



Posted by Alphabeta > Jul 9, 2016 11:25 AM | Report Abuse

The calculation of the monthly saving of RM 700 is a simplified version by assuming the 4% return is eaten up by the 4% inflation rate.

The correct way of calculating the annual withdrawal with an initial sum of RM 167,000 for a period of 15 years with an annual return of 4% should be:

(A + P/r)*(1+r)^n – P/r = 0

A= RM 167,000
R = 4%
n =15
P = annual withdrawal.

(167,000 + P/0.04)*(1+0.04)^15 – P/0.04 = 0
(167,000 + P/0.04)*1.8=P/0.04
300,600 = P/0.04 – 1.8P/0.04
P*(25-45) = 300,600
P = 300,600/-20
P = - 15,030 (which work out to be around RM 1,252.5 per month)

Posted by Ordinaryman > Jul 9, 2016 02:38 PM | Report Abuse
167,000/ 15 / 12 = 928
Dont know why 700.
Ignore 3.8% interest rate because same like inflation


The calculation above is correct. The RM700 is for 20 years.

Note one must use real return. In this case the real return is zero when gross return is the same as inflation rate.

Posted by murali > Jul 9, 2016 08:59 AM | Report Abuse
My point is margin is a useful tool,but only to a certain qualified investors and u are one of them.

Thanks for your looking up on me in your last sentence. It is hard to get such compliment from a straight talking fellow like you who doesn't mince his words. It is my honour.

When I wrote my first article on the pitfall of margin financing here, you can see i did use leverage and made amplified gain

http://klse.i3investor.com/blogs/kcchongnz/44344.jsp

But I don't tell in the public how great was i using OPM. It is not a great thing to tell the public how great is making money in the stock market using margin, something which can be very damaging to anyone if thing turns the other way,and it often does.

http://klse.i3investor.com/blogs/kcchongnz/82699.jsp

If you murali sincerely seek my advice if you should use margin, I will tell you no, not because you are not good in investing, but because the market can be highly uncertain and unpredictable.

Of course if you use margin, or anyone else does, it is your prerogative. I won't criticize you or anyone, not unless you propagate that to the general public, which then i think I have an obligation to do so.

Posted by murali > Jul 8, 2016 06:02 PM | Report Abuse
Cold eye uses margin ac i think

Posted by murali > Jul 8, 2016 06:03 PM | Report Abuse
And he is doing very fine for the past 8 years...i think his wealth increases many many times

Coldeye did do well in the past and he continues to do well. This is because he has good investing principles and methodologies.

If he uses margin account, it is probably alright. Bear in mind he has his down time too.

Every one has his right what to do in investing; whether he uses margin or not, what methods he uses etc.

But newbies and young people here are not Coldeye. Have you seen or read that he encourages and promoting youngsters and newbies to use margin finance before? I haven't, but I only read what he says here.


不过，切忌借钱买股票，理由是利息是固定的，收入却难以预测，故借不得。 Coldeye

He further says,

猜股市如抓黄鳝

我确实不知道明天，下个月或明年股市会怎样，我也不认为有谁有这样的本领。

http://klse.i3investor.com/blogs/kcchongnz/88651.jsp

Posted by 15% to 20% > Jul 8, 2016 05:44 PM | Report Abuse
Mind to share how you get RM700 ?

As the average Malaysian is expected to live until 75, retiring at 60 with RM167000 would mean surviving on just RM700 a month for the rest of their days. Can that amount of money provide him with a comfortable life style?

Assuming the retirement fund is placed in bank deposit yielding 4%, the same as inflation rate,

Yearly withdrawal in today's money = 167000/15 years , which is about RM700 a month.

Posted by yfchong > Jul 8, 2016 09:07 AM | Report Abuse
Seriously after watching Bloomberg KS li interview not I understand my uncle koon is doing not because of $$. Is just to prove his view n approaches are in line n applicable... there is no right or wrong is just the destiny....overtime to tell. Conservative vs thinking out of box triz methodology. Cheers

In the same interview, he was asked, "What is the most important thing in your business?"

"Cash flows." Li KS said.

Investing in a share is akin to investing in a business, part of a business to be exact. But how many people, some pouring milliosn in "investing", know what "cash flow" is?

Posted by yfchong > Jul 8, 2016 09:07 AM | Report Abuse
Seriously after watching Bloomberg KS li interview not I understand my uncle koon is doing not because of $$. Is just to prove his view n approaches are in line n applicable... there is no right or wrong is just the destiny....overtime to tell. Conservative vs thinking out of box triz methodology. Cheers


In that interview, Li KS shows the interviewer a certificate of AIG in a plaque which share price has dropped by 91%.

What is the lesson? Asked the girl

He said, "The lesson is don't treat investing as gambling".

Posted by jassmen > Jul 8, 2016 01:24 AM | Report Abuse
Reits ok boh?

http://klse.i3investor.com/blogs/kcchongnz/72196.jsp

There is certainly a major flaw in using a simplistic P/E ratio in relative valuation. It doesn't differentiate a company with plenty of cash in its balance sheet, and one with heaps of debt, both having the same business and same PE valuation.

Here is why.

http://klse.i3investor.com/blogs/kcchongnz/84689.jsp

And it is glaring.

I will donate and subscribe to KLSE.my paid service too.

Posted by stockraider > Jul 3, 2016 02:09 PM | Report Abuse

Raider says,
Despite what kc had says...FLumber looks attractive at Rm 1.80.
This is one of the better manage company with good cashflow and dividend and selling reasonable valuation now mah!!.

Yes some insider is selling probably to raise some cash for its requirement, but again this is best opportune time to accumulate loh..!!
Raider suggest slowly accumulate mah....don worry loh....the value is there...collect over time...u should do well..!!

Raider don see why Kc need to come up with such a negative comment on Focus Lumber when share now is such an attractive buy loh...!!
He should make this type of comment when it is Rm 3.00 mah...!!

Anyhow the positive part...this negative report is good for accumulation loh...!!


Why do you interpret that my post is negative about Focus Lumber?

Posted by Henry Tan > Jul 2, 2016 10:11 PM | Report Abuse
Hi KC,
It is now trading at PE lower than 6, is it good time to accumulate?
I find it fundamentally strong, high DY, ROE, FCF, and some more is net cash position.

Posted by clarencebak > Jul 2, 2016 10:49 PM | Report Abuse
FLBhd achieved all these beautiful numbers due to d appreciation of USD last year. The latest rate has plunged to 3.99. Moreover they don't have double tax deduction anymore. These two factors alone could slash their profit to how it was before d USD appreciated in Aug 2015.


Macro economic thingy is hard to predict. Hence I tend to ignore this unpredictable and uncontrollable things and focus on the fundamentals.

I think the drop of Focus Lumber these days is more due to selling of certain golden rule trader.

All these shall pass.

Posted by sostupid > Jun 29, 2016 11:02 AM | Report Abuse
Investing is investing in yourself. Stupid. Money don't drop down from the sky freely. Warren Buffett quote: If you are stupid yourself the world will always look flat to you all the time, whether it is yesterday or in the future.


First time fully agree with you.

Read, read read. Learn, learn, and learn. Practice, practice and practice.

There ain't no tooth fairy in Bursa, Idiot!

Investing is the same.

Without the necessary knowledge and experience, how do you know a stock is good to invest in?

Without knowledge and experience, how can one earn extra-ordinary return from the stock market?

Without the necessary knowledge and experience, how can you beat the big boys in the stock market playing in their field?