Posted by AyamTua > 2014-05-19 19:58 | Report Abuse

yes ! hexzaaaaaaaaaa

Posted by calvintaneng > 2014-05-19 20:00 | Report Abuse

Very Good For Fundamentalist Investors!

My Experience In i3 Forum & also in Investlah show that more than 80% of the people DO NOT BELIEVE In Long Term Value Investing.

This Is What One Value Investor Told Me. "
70% of The Chinaman Bosses are not educated and they have made their money from businesses. They are not well versed with accounting - so they depend on friends or Star paper or Nan Yang Siang Pau for tips or rumours.

Their Accountants know figures but have little interest to study investment or to teach their bosses as there is no incentive to do so. So this is the scenario - the Bosses have money but don't know how to invest properly. And the Accountants know how to read figures but have no money (after deducting house & car loans there is little money left) so they don't bother about investment.

This appalling state has created 2 markets in KLSE. The Group who speculate on rumours and a small group of True Investors.

I think Ben Graham, Walter Schloss or even Warren Buffet will be happy to find Undervalued Gems in KLSE - Totally Overlooked by The Gambling Crowd

Posted by AyamTua > 2014-05-19 20:02 | Report Abuse

people believe in mahjong, fortune-telling etc cant help them lah

Posted by AyamTua > 2014-05-19 20:46 | Report Abuse

pmcorp and hexza the last cheap counter of Graham Net Net!

Disclaimer: trade at own risks

Posted by stockoperator > 2014-05-19 21:01 | Report Abuse

Remember there is Only One time gain if there is Any. Do you guys see the difference yet???

Posted by stockoperator > 2014-05-19 21:05 | Report Abuse

Ayam Tua, you tell everybody here How Long have you been waiting already for HEXZA to go up to Rm1.00? I thought you are too Old to wait?

Posted by stockoperator > 2014-05-19 21:07 | Report Abuse

I did not mean Nasty ya. I treat everybody here as good friends ya.

Posted by AyamTua > 2014-05-19 21:07 | Report Abuse

stockoperator: AyamTua means I can wait sampai tua.. why the fast? Hexza mah.. slow slow but moving .. kikki

Posted by AyamTua > 2014-05-19 21:08 | Report Abuse

Posted by stockoperator > May 19, 2014 09:07 PM | Report Abuse

I did not mean Nasty ya. I treat everybody here as good friends ya.

faham.. no worries .. kikiki

Posted by NOBY > 2014-05-19 21:15 | Report Abuse

KC how are you allocating your portfolio between asset plays and magic formula stocks today ? How many pct for each ?

Posted by stockoperator > 2014-05-19 21:17 | Report Abuse

Ok Ayam Tua you sudah.

And My Dear Calvin, if you want to become Net Net Calvin, have you bought 60-100 counters yet?

Posted by stockoperator > 2014-05-19 21:18 | Report Abuse

And my very dear KC, i think you forget to list down last-time Proton and Now Mas among others yet ya?

Posted by AyamTua > 2014-05-19 21:21 | Report Abuse

abang stockoperator: Proton and MAS as Graham net net? I opine abang KChongnz knows what he says .. hihihi :-)

Posted by stockoperator > 2014-05-19 21:23 | Report Abuse

NOBY, i think KC writes this articles just for fun and challenges us.

After reading so much of his article, KC IS NET NET IN BUSINESS Value.

Posted by stockoperator > 2014-05-19 21:32 | Report Abuse

OK lah most of all are tempted to be Net Net for awhile. But you know he is holding Pintaras, PresBhd, Kfima, Padini among others what?

Posted by stockoperator > 2014-05-19 21:38 | Report Abuse

Like FACB, Now Net Net because of High Cash and we should invest. That means if company invests in machine and equipment to expand Business, it becomes Non Net Net and we should not invest. LOGIC OR NOT?

Posted by stockoperator > 2014-05-19 21:47 | Report Abuse

OK lah anybody wants to become Net Net then go become One.

Posted by stockoperator > 2014-05-19 21:53 | Report Abuse

Ini memang last liao. Yes as Business Owner the first thing i look at is Healthy Balance Sheet, but then No Business What to Buy?

Posted by AyamTua > 2014-05-19 21:57 | Report Abuse

hexza still got business .. vinegar..
pmcorp still got business .. chocolate ..
no business , people close shop liao loh ...
ha.. ha.. ha dont worry, kcchongnz principle of investment strategy is safe .. I have been his follower.. proven rock solid methodology.
infact if one follow his investment (rock solid) one will notice in one year time frame.. capital still intact mah with earning lagi ........ kikiki .... dont look into price, look into safety and value...

both kcchong and calvin tan have same pattern : safety and returns and long term ... sleep soundly , peacefully what matters ...

Posted by AyamTua > 2014-05-19 22:03 | Report Abuse

nowadays people look into action more.. if want fun in investment: then put 70% boring stock with 30% punting stock..

this way wont be old to wait.. e.g. asiabio, nextgram, smrt, k1, megb, masterskill all these put 30% .. and 70% boring stock like hexza, ntpm, kuchai, etc etc (those researched by kcchongnz)

to me.. when kcchongnz mention his stock pick - it's should be ponder upon too..

believe kcchongnz selections more to safety, rock solid and less entertainment .. boring stock ... but people wont lost that bad what ... by putting things into timeframe beat 10% CARG from market y-o-y basis.. bla bla..

believe me, kcchongnz KNOWS HIS STUFF.. :D

remember: 70% rock solid 30% punting if really want actions :D

Posted by Steven Yong > 2014-05-19 23:45 | Report Abuse

If property stock, think hard to use, as most assets are prop dev. Then would u consider Gbh and kela di?

Posted by stockoperator > 2014-05-20 03:02 | Report Abuse

If we look at Balance Sheet and Profit and loss and cash flow statement in totality we can conclude that Equity/Asset produces Profit and profit generates cash flow. And ultimately QUALITY cash flow is the blood flow of Business. Is it fair?

If the above statement is fair, then it must be fair to say that if cash flow is low/negative then profit must be irregular and that must be something wrong with the management in deploying the asset or even the asset is of low quality. As such the asset has little Business value at the moment.

Even if the asset is of High quality, it is still up to management willingness and capability and know how to unlock the asset value. So it is still fair to say that the High quality of asset is of little Business value at the moment if the value has yet to be unlocked. Is it not fair?

Well, if you invest in 60-100 stocks, I would not deny that some might be high flying above its NTA due to turnaround, some might be closing the gap to NTA, some might be privatized, some might get new management, some might venture into New Business, ..whatsoever.

Well, it is speculation against hard fact investment. What else can I say?

Posted by stockoperator > 2014-05-20 09:44 | Report Abuse

Overall there is no evidence that net net graham has outpaced Business value investment short term long term bad time or good times if we take overall 60-100 stocks as a whole Not a few shortlisted one.

The main reason is lack of Insider Move. The Boss knows the accounting value and Business value more than anybody else right? Why there is No insider Move?

1) Timing and Condition must be right;
2) Accounting Value Yes but No Business Value;
3) Situation is worse than we all perceived;
4) The purpose of listing has been met

Well all sort of Rumor will be associated with this typed of companies.

Posted by stockoperator > 2014-05-20 11:49 | Report Abuse

Any company that has the management capability to unlock cash value/asset value will see a Huge move for next ten years as DCF model is working Now. And i don't want to miss the Boat as well.

Posted by NOBY > 2014-05-20 12:47 | Report Abuse

One of the criteria of graham net net is that the company does not bleed cash or making huge losses as this would in the long run deplete its cashpile. DCF models eventually come up with the intrinsic value by adding the present value of future cashflows as well as the excess cash a company has today. That excess cash/liquid assets which is present in Graham net net type stocks provide you a huge additional margin of safety in the intrinsic value. I have valued many companies using DCF and those having a strong balance sheet always had a bigger margin of safety even with the most conservative growth assumptions.

Posted by kcchongnz > 2014-05-20 14:28 | Report Abuse

Posted by NOBY > May 19, 2014 09:15 PM | Report Abuse

KC how are you allocating your portfolio between asset plays and magic formula stocks today ? How many pct for each ?

I have no fixed rule, but at the present situation now, I tend to lean more towards balance sheet investing, a lower risk strategy.

Earnings, and hence ROIC can change much quicker than asset value.

Posted by stockoperator > 2014-05-20 15:28 | Report Abuse

Is margin of safety a specific located price for people to hide? Or market drops 20% and your portfolio managed to drop 10% that is margin of safety?

Or should we think that margin of safety is where 90% of broad market drops But i am holding the balance of 10% that will continue to perform well.

Posted by stockoperator > 2014-05-20 17:07 | Report Abuse

I know the mentality of managing own funds and other people funds are different.

Posted by stockoperator > 2014-05-20 17:13 | Report Abuse

But my experience is that customer would prefer clear communication and clear strategy.

Posted by stockoperator > 2014-05-21 17:40 | Report Abuse

I know it is wrong of me to comment on different investment style as risk rewards of individuals are different and Nothing is absolute right and wrong.

Posted by NOBY > 2014-05-21 17:48 | Report Abuse

Posted by stockoperator > May 20, 2014 03:28 PM | Report Abuse

Is margin of safety a specific located price for people to hide? Or market drops 20% and your portfolio managed to drop 10% that is margin of safety?

Or should we think that margin of safety is where 90% of broad market drops But i am holding the balance of 10% that will continue to perform well.


For me, even if my stock dropped 20%, or part of the 90% of the broad market to drop, as long as I have clear idea on its value, I would buy more if I have the cash as the margin of safety would have increased if the price drop is not related to fundamentals. Price volatility is to be expected when investing in the stock market and they are the result of the temperament of the market participants. Like KC mentioned, in the case of Graham net net, asset values change much slower than earnings, which would you prefer to hold in current market condition ?

Posted by stockoperator > 2014-05-21 20:36 | Report Abuse

I am the advocate of portfolio diversification instead of stock diversification. It is a new Horizon that is why it is called efficient frontier. We Really need to open up.

I am also learning cash management as I dont want to have a cash call or into the situation of what you said i would buy more if i have cash.

I want to make sure i am well prepared at all time and Nothing surprises me. This requires certain sacrifices in term of yields and mentality to think in the context of Eternity.

Ultimately My portfolio needs to survive so we can only talk about realization of long term compounding.

Posted by stockoperator > 2014-05-21 20:53 | Report Abuse

You know what i mean? we should not talk about 15% or 20% or 25% ? But after 30 years where are we right?

Posted by stockoperator > 2014-05-21 21:04 | Report Abuse

A High conscious mind looking beyond your fear and greed and emotion generated from our own thoughtlessness. Then you know of survival ship, eternity,...long term compounding, peace of mind in investment..in fact everybody knows and i am just reminding.

Posted by yh_tan > 2014-08-03 11:58 | Report Abuse

Kcchongnz, I'm confused whether one should minus minority interest when calculating net net working capital. Please enlighten me.

Posted by mahorse > 2015-05-28 10:32 | Report Abuse

Dear KC, in the case of property stocks, do you mark down "Property Development Costs" which is classified under Current Assets. Thank you.

Posted by kcchongnz > 2015-05-28 11:28 | Report Abuse

Posted by mahorse > May 28, 2015 10:32 AM | Report Abuse
Dear KC, in the case of property stocks, do you mark down "Property Development Costs" which is classified under Current Assets. Thank you.

All depend if the property development can sell well or not. If it can, then it may even worth more than its book value; otherwise it may not worth much at all.

Posted by mahorse > 2015-05-28 16:44 | Report Abuse

Thanks, KC.