To be honest, I would suggest KC to stop replying. It's just a waste of time.

As for stockmanmy...haiz, I think you have very poor understanding of value investment and also poor debating skill. When KC provide his valuation, you criticize him for only applying formula and indulge in MOS; and as he scout in ACE market, you said he is not prudent, not risk adverse. But the way he being prudent and to ensure the reward is better than risk is to apply MOS!

My sincere suggestion, write a post, explain what really is your so called dynamic investing. How it could be done to achieve your "right price right people right business". So far, your dynamic investing looks just like stock goreng with gut feeling. And it really don't put you in a good position to debate against value investment.

Stockmanmy, I am not sure if you are interpreting correctly on the MOS, it is the difference between the intrinsic value and current share price in percentage, so I believe it is to be applied before you enter a counter. This is to provide a safety factor to your valuation, or in your term - is to understand if it is the right price to buy.

So what would happen if the price has gone up 5% as you mentioned? Does it mean that your MOS is lesser? Yes, but only if you are going to enter after the price hike and also getting the same valuation for that counter.

For those who have bought long ago, they should just check against the latest financial performance of the company to ensure their past valuations are still valid. If it's still valid, then the MOS become the potential profit margin! But let say if the company fundamental has started to deteriorate and intrinsic value drop(and probably near to the share price at that time), then one can consider to sell to take profit.

So, isnt this MOS a good approach, in your term -buying at the right price?

One does not simply embrace risk without knowing the rewards are better.

It's ok that you don't see value investing as a nice tool to build long term wealth. But referring to your "good business, good people and good price", assume you already have a sustainable and profitable method to identify the good business + good management, do you mind to share how do you decide if it's at good price to enter? And to what extent you should sell your holdings? I believe you have the generousity to share, right?

Hi manmy, I am actually quite confuse with you insisting ppl to buy 30% of Jaks...what can it really prove? A focus portfolio does not say anything, and in fact it's worse when you are focusing on the wrong stock.

You see, it is just common sense to buy a counter with right business, right management and at the right price. But how do you evaluate or justify all these mentioned factors? Even TA also has to look at the volume and trend to decide if it's time to buy...

Why say so..mind to share?



Posted by Flintstones > Mar 20, 2017 05:32 PM | Report Abuse

This author must be new to the stock market

With Chinese companies as the major players and China eagerly to clear their domestic inventories to overseas, not sure if local material companies will be benefited from these projects.

I don't see any difference between DCF, trend indicators and your suggestion - phone call to CEO. They are all forecasting and hence an estimation.

When you do DCF, you estimate the intrinsic value of a company based on its past financial performance;
When you draw support/resistance/zone/band, you estimate its TP and when to cut loss based on its past share price performance;
And when you ring the CEO, you ESTIMATE the company growth/future prospect based on the information provided by the CEO.

If audited financial report and/or market share price could not give you any sense of confidence, why would a conversation with CEO could when he/she has no say on the industry future?


stockmanmy > Mar 9, 2017 10:01 AM | Report Abuse

all forecasting is too inaccurate to be useful.
Pick up phone talk to CEO more accurate.


yenhui_koh > Mar 9, 2017 12:27 AM | Report Abuse

Different methods for different type of market players. Value investors go for DCF, ratio analysis, etc...Technical go for charts and indicators. As long as you able to earn a good return by applying the method(s) you are comfortable with, then it's a good strategy.

Different methods for different type of market players. Value investors go for DCF, ratio analysis, etc...Technical go for charts and indicators. As long as you able to earn a good return by applying the method(s) you are comfortable with, then it's a good strategy.

Being one of the value investors, I would say we have our own ways of looking at the market and it's definitely different from other schools, so why should we pay that much attention to the noise?

IMHO, just stop giving limelight to attention seeker, especially a tin-kosong one. Keep responding to those ambiguous statements are just a waste of time and life.

Dear friend, it seems that you have copied almost the whole article from Jae Jun...shouldn't you give the credit back to the author..?

http://www.oldschoolvalue.com/blog/valuation-methods/how-to-beat-the-market-with-the-sloan-ratio/