Why do you guys think that Q4 will be bad? Any reason? I am just curious because i don't think the expansion will effect the accounting earnings much.

Hevea appeals to me. Thats what matters. I dont have to know, so i wont ask. Anything further than that, then i will be speculating. I know what i don't know.

Haha maybe my definition of a standatrd business is different. But even a bad business can earn higher than their WACC given the cycle is at the peak. HEVEA is definitely undervalued at this moment though!

Maybe subpar is a better word rather than "bad". I agree that it has a moat but doesnt mean the business itself is fantastic. There is better business out there that doesnt depends on external factor. Also, i did said HEVEA has a cost advantage.

And i agree that HEVEA has a better management than EVERGREEN (cant even earn higher than their cost of capital).

But yeah, HEVEA is a much better pick than EVERGREEN. But there is more companies with wider MOAT which is what i am trying to say.

Bad business doesnt mean bad company. Barrier of entry is not strong, but its still being managed by competent guys. I view this as a value stock.

Valuation and analysis on HEVEA
https://twentybaggers.wordpress.com/2017/06/07/hevea5095-good-management-bad-business/

Its a assumption. But its not a dangerous assumption. The valuation is based on earnings that are earned when its in pre-recovery and NOT when its in the peak(earnings). This analysis is to show how safe is FAVCO and how big the investment can payoff.However, its still have to trigger a catalyst for big payoff.

my thoughts on this company
https://twentybaggers.wordpress.com/2017/06/03/value-buy-favco-favelle/