Mr tan, my opinion, those company with CAGR of eps > 15% for past 1 decade, no quarter with loss, are company with durable competitive advantage, should be good one to buy..in my record got more than 100 counters in bursa fufilled this requirement.
Mr Tan, there is a book in Popular where the publisher has taking into consideration of all the bonus issue, split...etc and derived the "corrected" EPS ..i bought the new edition every year....I believe EPS's CAGR is more accurate than profit's CAGR. What do you think?
Kin, REITS very much depend on property value and rental...when many property vacant during doom, the rental income will drop..hence dividend will drop too...what do you think?
Yi, wats the title of the book tat u mentioned? Can go 4 REITS tat have anchored tenants (a few large corporations rented the hold building/ factories etc). Shopping malls also less risky.
Tan. Do u think it's appropriate to estimate future EPS by dividing estimated future profit by current weight avg no. of share? Yi. I really need the book. Another tip 4 u. Can go 4 REIT backed by bank/ govt. Sure they can get somebody 2 fill the office space.
Kin, title of the book is “股市指南” have both chinese and english version. you can easily search from the popular book store..but current version is 2012...wonder when going to release 2013 version as the year just ended...supposed October. Talking about REITS, yes, agree with you...but when over supply take place in 2014 - 2015..i afraid the game maybe a little different...Thus, i advocate Singapore REITS if seriously need to buy REITS.
But be it Share/ REITS, i afraid current DY is seriously not attractive at all...I still be believe DY more than 10% is a fairer figures to cover personal inflation rather than government's reported inflation.
My business experience tells me that i will SURVIVE with good operating cash flow, but i will only PROSPER if my business got good profit. On top of that, i consider myself a SUCCESS if every dollar i invested (share issued) will give me the highest return possible..
Thus i think is more accurate to use EPS CAGR..A company can keep issuing new shares but making same profit every year. It becomes smoke that blur the eye if only looking at profit CAGR...example, company A made RM 300k every year with 100 shares issued. But company B made RM 300k with 100k shares issued.. I think investing in company A is wiser than company B. Thus, EPS will be more appropriate.
Also, for a good DY company, it must be with durable competitive advantage which in turn given a very consistent EPS CAGR...With this figures in place plus fair PER, i somehow can roughly estimate the future (say 10 years, or 20 years) shares price...This made the company not only good dividend paying stock, but also capital appreciation stock.
A beautiful and convincing EPS CAGR shuld give us certain level of confidence to ESTIMATE future eps..You may refer book written by Mary Buffett, daughter-in-law of Warren Buffett for the details...That book can be found in popular too..
Mr Tan, If year 2012, earn 300k, shares 600k, EPS is?
I refer to that book whereby they keep record of total shares and changes over a very long period of time and any quantity change due rights, bonus issues , etc will be take into consideration of earning ability of the company..
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
YiStock
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Posted by YiStock > 2014-01-03 13:23 | Report Abuse
Mr tan, my opinion, those company with CAGR of eps > 15% for past 1 decade, no quarter with loss, are company with durable competitive advantage, should be good one to buy..in my record got more than 100 counters in bursa fufilled this requirement.