Posted by chongkonghui > 2013-06-02 10:12 | Report Abuse

A Low margin business...

Posted by aunloke > 2013-06-02 11:35 | Report Abuse

At last I see someone is interested in Poh kong ,to me it is a NNWC stock with its value increasing annually . For this type of stock its price can increase above 20% just with a slight positive news which hopefully may come soon.

Posted by aunloke > 2013-06-02 16:05 | Report Abuse

NNWC means net nets working capital , the formula is

Cash + 75% of receivable + 50% of inventory - total liability .
Strictly speaking Poh kong is not a NNWC but if we revalue the inventory , take it as 85% of the total ( after all even the old stock can still be convert into cash easily ) then the present share price is lower than its NNWC, besides, the company is making money every year so the NNWC will keep on increasing, one day the share price has to close the gap to catch up with it.

Posted by aunloke > 2013-06-02 16:42 | Report Abuse

There are a few more reasons that I like Poh kong :-
it's money making company , low PE with div. ( though it's just at par with FD )
ROE 11% may not be ideal but just imagine if someone were to subside you half to do the business would you jump onto it, actually your ROI is about 25% to me it's a good business deal. What's more during high tide all ships float but this one hardly.