Posted by rchi > 2014-07-13 12:29 | Report Abuse

Bill Gates and Steve Jobs are school dropouts.Tertiary education does not equate great success,however it does make the road less bumpy.

Posted by Alphabeta > 2014-07-13 13:37 | Report Abuse

Mr Koon, thanks for sharing your wisdom, unfortunately Mr Market will thrive on news rather than fundamental for short-term gain though in the longer term the latter will prevail.

Most fund managers will follow Mr Market else they will be blamed for their contrarian choices if they under-performed.

I would prefer to invest in business that can employ its incremental capital at high rate of return (incremental net earning attributable to shareholders/incremental shareholder equity) over a period of time (after deducting one-off earnings and fair value adjustments).

When a business operates and generates profit, management have a choice of what they should do with the profits. This is known as “capital allocation”.
It includes such choices as how much to return to shareholders as dividends.

You should be looking for a consistent and high return on equity and a strong track record of incremental equity is invested at a high rate of return.

Another issue is earnings quality, the recording of revenues and expenses in accounting terms does not have to (and often may not) coincide with real operating cash flows (as recorded in the cash flow statement).

Income statement is much more prone to accounting distortions. Cash from operating activities, however, can be considered a reliable measure of true cash profit.

If net income against cash from operating activities diverged for an extended period, with lower operating cash flow than reported net income, then one has to be caution before investing.

Most businesses utilised shareholders’ fund and interest bearing borrowings to invest for a return. A true measure of value added if when management able to generate net operating profit after tax (NOPAT) over and above the cost of equity and cost of debts (WACC).

I think Mr Koon will agree with me that all business ventures entail risks; it is a matter of its degree and the associated rewards. The rest depends on entrepreneur skill, risk appetite and affordability to failure.

If we invest in a business and check its financial health from time to time, if Mr Market overpriced we should take advantage and locked-in profit and accumulate when it is undervalued as long as the business is fundamentally sound.

Posted by Koon Yew Yin > 2014-07-13 14:48 | Report Abuse

Alphabeta, from your comment, you seen to have a good understanding of doing business and Mr Market. Readers will recall that I have been saying the same as the last paragraph above to make money.

I said that no share price can continuously going up or coming down for whatever reason and investors must take advantage of this phenomenon to make money. After having identified a good company, buy the share and accumulate more when it is selling at a low P/E and sell some to lock in profit when it has gone up. Buy back when it is cheaper if the fundamental of the business remained unchanged.

I would like Alphabeta to tell us what are the good shares to buy.

Posted by Fat Cat Tim Buddy > 2014-07-13 14:53 | Report Abuse

uncle koon, can i 请教 you about why you purchase jtiasa? it is because your friend recommend it? or you deeply study the company and find the prospect is very good?

Posted by tjhldg > 2014-07-13 14:58 | Report Abuse

uum uum .. tj also wanna 请教 uncle koon any partiular reason why u purchase xinquan ? thanks

Posted by Fat Cat Tim Buddy > 2014-07-13 15:19 | Report Abuse

Mr koon, lately BNM raise the BLR to +0.25 , its that means you have to pay more interest for the stocks you bought on your margin account?

if that so, what will you gonna do? reduce the holding stocks or maybe you just have too much money that you don't even flinch about paying a little more interest?

Posted by Koon Yew Yin > 2014-07-13 15:54 | Report Abuse

Fat Cat Tim Buddy and tjhldg, if you type Jaya Tiasa is my best bet or Xinquan on the top right hand search, you will find that I have written about these 2 stocks and the reasons why I bought them.

I have written to state that out of hundreds of shares I have invested Xinquan was my worst investment. But I still have hope. The share price is so depressed because it did not give out dividend.

Last annual report shows that its NTA is Rm 2.50, ROE is 17.56%, Cash value is Rm 2.54 per share, 49.5 sen EPS and the company has very strong cash flow.

I have given almost all my shares to my children and grand children that they can wait for it to turn around. I still have hope but I am not asking you to buy it.

Posted by tjhldg > 2014-07-13 16:01 | Report Abuse

just 诚 心 请 教 ， nothing else but curious . thanks . all the best .

Posted by arv18 > 2014-07-13 16:05 | Report Abuse

-Mr Koon, have you entertained the prospect that Xinquan could be cooking the books, like the other Chinese co?

A company does not necessarily have to pay out dividends, however one has to wonder why it doesn't seem concerned about putting investor jitters/minds at ease by putting in a dividend payout policy.

-Could you be a victim of just looking at the trees (financials) and not seeing the forest (the big picture)?

- Are you familiar with research, work done at Bronte Capital and Muddy Waters?

Cheers

Posted by Fat Cat Tim Buddy > 2014-07-13 16:24 | Report Abuse

uncle koon, i used up a whole morning to update my research on timber related listed companies, as from my novice perspective.. please pardon me as i am going to be straight forward.. i think jtiasa is not as good as you said, actually it is quite a bad investment, it earning and revenue is so volatile , that's why the dividend yield also not much and not stable. Buiness-wise , im might not so good at it, but number-wise , i might have some of it, jtiasa numbers is not so good according to me, anyway 各花有各眼, i might be wrong too, but do you ever consider and think of the worst case scenario , that your jtiasa is going to holland/stagnant just like your investment in xinquan?

just think about it, that you actually realized you making a wrong decision, if so what you gonna do about it? did you ever making a wrong decision? if so how you, what you did about it? do you mind sharing your richly experience with all the members in this website?

Posted by speakup > 2014-07-13 16:27 | Report Abuse

Xinquan is the best China listed company in bursa. Certainly not the best company in bursa, but bet China listed in bursa.

Posted by arv18 > 2014-07-13 16:41 | Report Abuse

A couple of snippets for your perusal

Target RM0.62 (Stock Rating: REDUCE)

****It makes little sense for Xingquan to propose a private placement. It sends the wrong message to shareholders and has us scratching our heads since it already has more than RM500m cash.****** The interim results added to the negativity. At 85% of our FY6/14 forecast, Xingquan's annualised 1H net profit missed expectations due to continued deterioration of sales volumes in 2Q. We scale back our FY14-16 EPS numbers to reflect further volume declines. We are downgrading the stock from add to Reduce. Our target valuation is lowered to 0.3x P/BV, a 50% discount to the sector's 0.6x (previously at parity with sector) to reflect our fundamental concerns over the stock.

------Source CIMB (who, of course, earlier championed this counter)

Why these shares almost immediately trade below IPO price:

a) the usual question, why choose to list in Malaysia, that in itself is a difficult question to answer, how to dispel the rumours that they are too small to list back home

b) the pricing will have to be fair relative to what other red chips are being priced in SGX, Xinquan was priced too high at IPO

1) Investors will be concerned that they have never seen the operations and that they may never get "good research coverage" or even corporate news analysis on the counter.

------Source http://malaysiafinance.blogspot.com/

for investors perception to change.... hmmmm.... I think balance sheet improvement is one major factor. I am really sceptical to see companies saying they have tons of money in their balance sheet but yet they seem to get 'value' or interest income from their vast pot of money. Why? Is the money real or not? And worse still, despite all these cash, these chinese companies still wants to raise money via share placement sale and TDR. Why? Got tons of money mah... but still want to raise more? Errrr.... and then some of the capex made by these Chinese companies seems rather exuberant. In XQ's case, the rebranding exercise simply blew my mind. In short, it's simple. For the perception to change, investors do not want to see questionable issues in the company they are investing in. And sadly for the Chinese stocks listed here, these questionable issues are the very same issue raised in Chinese stcoks charged with fraud.

------Source http://whereiszemoola.blogspot.com/

Isn't the most pertinent question regarding Xinquan - If XQ is so good (financially) then why it is trading below IPO price and keep falling like a stone?

And this brings me to another point Mr Koon

What is your pain point/threshold? At what point do you cut your losses and admit you've made an error in judgement? Isn't the hallmark of any good investor knowing when to admit and correct a mistake?

"I have given almost all my shares to my children and grand children that they can wait for it to turn around. I still have hope "

I personally don't believe in "hope" as a sound investment dogma or strategy.

Posted by wt222 > 2014-07-13 16:46 | Report Abuse

Admit yr mistake n cut loss on xinquan,salvage some money n donate to the poor.....don't let the conman laugh all the way back to China.

Posted by wt222 > 2014-07-13 16:48 | Report Abuse

Seriously,do u still believe in all those figures?high NTA,high EPS,high cash per share,strong cash flow?????

Posted by wt222 > 2014-07-13 16:50 | Report Abuse

Wouldn't u be worried that it will follow the path of CSL?

Posted by arv18 > 2014-07-13 16:54 | Report Abuse

apparently Mr Hope, sorry Mr Koon still does. Very shocked and a bit distressed personally.

Posted by calvintaneng > 2014-07-13 16:59 | Report Abuse

Common now you guys. You must give due respect to a veteran. Actually, I also noticed CIMB questioned why raise RM33 Mil thru' private placement if Co has RM500 Mil cash?

Did Co want to give sweets to shareholders in giving free warrants.

There is one point you have overlooked. Insiders of CSL have not bought any CSL shares whereas Insiders of Xinquan have been buying.

So there is a difference. If there is fraud in CSL and shares get delisted Directors are not concerned. For Xinquan Insiders will also suffer since they have bought with own money.

If not being a China Co Xinquan would also be in my investment radar as a value buy. Perhaps Mr. Koon know the Operation & Management better since the lady boss (substantial shareholder) is from Macau.

Posted by Alphabeta > 2014-07-13 17:04 | Report Abuse

It is very difficult to search for undervalue stock at the moment but i am still holding HuaYang and Uchitec which I have bought a few years back though they still showed good incremental growth but on a declining trend.

Sunreit which I have recommended in your previous forum in early 2014 (around 1.25 then) has upside potential and reasonable dividend yield.

The reasons for holding these stocks are their strong cash flow and good dividend payout and yield.

I have taken profit on SKPRES due to its strong run recently, valuation too steep. Though its’ operating cash flow still strong but incremental earning also on a steep decline.

If you are looking for good dividend yield (around 10%) and slow consistent performer, then have a look at Marco.

But I must warn you that I have purchased these stocks for quite a while and most of them are dividend yield stocks with reasonable capital gain.

Posted by arv18 > 2014-07-13 17:11 | Report Abuse

hey thanks Calvin for your input. you mention a couple of good points:

-"Insiders of Xinquan have been buying. "

Sure. Great. Why not just use the cash to privatise ala Tradewinds & Malakoff, instead of buying in dribs and drabs?

-"Perhaps Mr. Koon know the Operation & Management better since the lady boss (substantial shareholder) is from Macau."

That is a REALLY good point. So WHY hasn't he mentioned it??? instead he's been repeating this same line....

"I have given almost all my shares to my children and grand children that they can wait for it to turn around. I still have hope "

.....which quite frankly doesn't inspire much "hope" in me.

Posted by Malaysian888 > 2014-07-13 17:50 | Report Abuse

Mr.Koon , appreciate if you can give your view on Luxchem and Liihen , thank you.

Posted by tjhldg > 2014-07-13 18:31 | Report Abuse

:)

Posted by Koon Yew Yin > 2014-07-13 19:07 | Report Abuse

Please stop talking about Xinquan because I already admit my mistake and I have given almost all my shares away.

Luxchem and Liihen are very good shares but they have already shot through the roof in the last few months.

I do not buy any share that has already gone up more than double its price within such a short period.

I have been buying TH Plant at around Rm 2.00 in the last few months and I am not afraid to tell you. You may say I am stupid to buy this when no body wants it.

Time will tell who is right. Remember, I made all my money using the same method of selecting shares. If you have not been making money, please don't teach me how to make money.

Posted by Chan Chee Kin > 2014-07-13 22:18 | Report Abuse

I respect Koon for sharing his view and perspective, i think it's not right to keep harping on his flop on XinQuan. Who doesn't make mistake and it's valuable for him to share his experience. Yes, you have the right choose to believe him or not. While people have their rights to be sarcastic may be due to his past success, there are still people like me looking towards learning from him. Mr. Koon, do continue to share and ignore the noise.

Posted by AyamTua > 2014-07-13 22:22 | Report Abuse

Hey .. dont give in.. you have done your part, even donate all riches away.. dont bother about what people say.. dont let shitty comments get to you ...

God Bless

Posted by Koon Yew Yin > Jul 13, 2014 07:07 PM | Report Abuse

Please stop talking about Xinquan because I already admit my mistake and I have given almost all my shares away.

Luxchem and Liihen are very good shares but they have already shot through the roof in the last few months.

I do not buy any share that has already gone up more than double its price within such a short period.

I have been buying TH Plant at around Rm 2.00 in the last few months and I am not afraid to tell you. You may say I am stupid to buy this when no body wants it.

Time will tell who is right. Remember, I made all my money using the same method of selecting shares. If you have not been making money, please don't teach me how to make money.

Posted by wt222 > 2014-07-13 22:47 | Report Abuse

Please donate to the poor......not to the rich China conman....

Posted by arv18 > 2014-07-14 00:35 | Report Abuse

okay, i'm kidding around a bit (the Mr Hope etc), but quite serious about the policy of still holding onto your XQ shares (giving them away doesn't count).

many investors, myself included are faced with the same dilemma. my stock is going down, i've done my analysis, then some new information comes to light. but the stock is already down 30% (not a financial crisis situation). what to do?

which is why i asked you,

-What is your pain point/threshold?
-At what point do you cut your losses?

NOT to attack, disrespect or demean you, but rather to gain some insight. the following questions could apply to ANY investor!

a gift of Ekran stock doesn't amount to much today, does it?

Posted by khooyeeping > 2014-07-14 00:49 | Report Abuse

好为人师，树大招风

Posted by lohman > 2014-07-14 09:27 | Report Abuse

Quote taken from an S&M practitioner's guide : "One man's pain threshold may be another man's pleasure zone".

Posted by cariyoyo > 2014-07-14 09:54 | Report Abuse

Let us be fair here. Mr. Koon must have invested not less than RM60,000,000 on Xingquan. He has not sold any of them but given them away to his children and grandchildren. RM60 million isn't a small sum and to many of us, a kind of money that you probably never be able to earn in this lifetime. And Mr. Koon had placed the amount in Xingquan. Do you possibly think he wasn't sure before invested into it. Maybe he thought Xingquan is going to be a winner but it turned out to be a dud!

Posted by wt222 > 2014-07-14 10:09 | Report Abuse

Sop,after seeing the modus operandi of most (if not all) of the China Counters here, such as high level of cash holdings (but can never tie to the interest income), good EPS, low PE etc...still, you have confidence in all these stocks?Keep on hoping, dreaming etc...

Posted by arv18 > 2014-07-14 10:14 | Report Abuse

@cariyoyo. interesting points.

-"Mr. Koon must have invested not less than RM60,000,000 on Xingquan"

Really? How did you verify this information? his word? If it was even true, what does it say about his 'Risk Management'?

Another question - should we even be listening to people like Warren.B & M.Koon? Is their style and strategy appropriate for the average investor in Malaysia? Especially in the Malaysian context, where the political whims and fancies can destroy or create value to the tune of 100% overnight?

Again, where is the "Risk Management"? Why isn't this being emphasised?

-"He has not sold any of them but given them away to his children and grandchildren"

Again, this goes back to Poor Risk Management. It is of concern, and may reflect the "I am so old and wise" mentality that affects his generation. I am not impressed.

-"Maybe he thought Xingquan is going to be a winner but it turned out to be a dud!"

Fine. Then sell the bloody company. You don't want you grandchildren remembering you for a 'dud' Gift. And you sure as hell don't want to be 'announcing to the whole world' this information (again, reflecting his mindset).

Posted by wt222 > 2014-07-14 10:19 | Report Abuse

Sop, it's about risk management, as what Arv18 highlighted above. All the figures of Xinquan are ridiculous...thats no reason why Mr.Koon cant see it. Just because of one's ego (or whatever reason behind), he refused to face the reality and most likely would end up with a total loss in this co....Wouldn't it be more meaningful to cut loss now or donate to the poor, instead of letting the China Conman laughing all the way back to China??

Posted by wt222 > 2014-07-14 10:23 | Report Abuse

I couldnt understand why Mr.Koon repeated to post all the those fairy tales figures about Xinquan : Last annual report shows that its NTA is Rm 2.50, ROE is 17.56%, Cash value is Rm 2.54 per share, 49.5 sen EPS and the company has very strong cash flow. ....Knowing his influence here....what's the purpose of doing so?Noble intention??

Posted by wt222 > 2014-07-14 10:36 | Report Abuse

The figure quoted also wrong...cash per share as at 31 Mac 2014 is ard RM562Million or around RM1.6+....

Posted by joerakmo > 2014-07-14 10:37 | Report Abuse

Like Warren Buffet...'he eats his own cooking' c'est la vie

Posted by arv18 > 2014-07-14 10:39 | Report Abuse

Before investing RM60,000,000 , probably advisable to hire a Forensic Accountant based in China, Lawyer based in China, Private Investigator based in China and also Assassin based in China (just kidding).

Posted by wt222 > 2014-07-14 10:42 | Report Abuse

Better let some professionals to manage yr funds, then you can spend more meaningful time on political and social matters.....Dont have to waste yr time here, opening threads by threads to promote the counters you bought.....

Posted by arv18 > 2014-07-14 11:04 |

Post removed.Why?

Posted by chenkx > 2014-07-14 11:13 | Report Abuse

Mr Koon, between FGV and TH plant at the current level, which one would u pick ? Thanks.

Posted by cariyoyo > 2014-07-14 11:25 | Report Abuse

Dear arv18,

You have raised and pointed out a few right pointers and issues on Mr. Koon's investment foray into Xingquan. If memory serves me correctly, Mr. Koon bought into Xingquan when the counter was barely 6 or 8 months being listed in Bursa. Checking out the numbers would have then entrusted to investment bankers. I have seen dozens of investment bankers flying to China on several trips to check on Xingquan, particularly its then about to commence new manufacturing facility. The facility was there and workers were seen working on shoe soles and what not. In fact, there were hostels built up for them. I personally know an investor from Sabah who checked on the workers at night and asked them about the company. He did all this on his own volition so as to be doubly sure. He is still holding his shares in Xingquan and the last I met him just a month ago, he, like Mr. Koon, still hanging on. Similarly, I felt Mr. Koon must have done his homework on Xingquan. I can't speak for him but I am sure as RM60 million or more was involved in that decision.

I am not supporting Xingquan but it is only fair to see what this counter will be going forward. At this point, it is a dud and most likely will be as Xingquan unable to dole out dividends. Dividends is one of the vital ingredients for upward share price movement. It is foolish to believe that the money is in the coffer when they can't even pay out 5 sen dividend. Another point which I could not come to point was that Ooi Guan Hoe, a director in XQ owns 35,000 shares only. If it is a winner, I don't understand why Guan Hoe isn't piling up his holdings.

Is a big question mark which I want to ask him myself.

Posted by arv18 > 2014-07-14 11:46 | Report Abuse

thanks for the all reply's. i should probably just shut up now. i don't want to be seen to be rubbing salt into wounds. i just wanted to pose certain questions i thought pertinent. anyways, time for others chime in. Cheers! and all the best for your investments.

@sop - i also need a company to have a track record (5-10years) before buying the stock. just like hiring someone. would you pay a fresh grad RM100,000 salary?

Posted by Koon Yew Yin > 2014-07-14 12:14 | Report Abuse

Wah! you all sound so smart. Please contact me koonyewyin@gmail.com because I wish to engage you to manage some of my money. To show you that I am serious, I have to tell you that I have engaged KC Chong, Ooi Tiek Bee and Peter Yang of Kaisutraders to manage a portion of my money totalling of about Rm 20 million.

These often publish their writings on this forum and I found out that they have been making consistently more than 35% per year in the last few years.

Posted by arv18 > 2014-07-14 13:18 | Report Abuse

.."because I wish to engage you to manage some of my money. I have engaged KC Chong, Ooi Tiek Bee and Peter Yang of Kaisutraders"

while that is lovely, offering RM20 million money management to a random stranger on i3 is also probably not advisable (could end up being another XQ situation).

also, nowhere have i claimed to be some superstar investors, like much respected members KC Chong, Ooi Tiek Bee and Peter Yang of Kaisutraders.

i have merely posed some questions. probably a bit upsetting to hear, but thats just life i guess. i was hoping you'd reply with some answers, not a job offer. more work is something i really do not need.

ps. putting your email with an offer of RM20 million money management etc is going to attract the wrong sorts of attention. not only that you're going to expose yourself to computer fraud, phishing attacks you will attract a flood of spam. please do be careful.

Posted by bragkingkoon > 2014-07-14 13:27 |

Post removed.Why?

Posted by arv18 > 2014-07-14 13:27 | Report Abuse

i feel the need to repeat myself because everyone has now seen the $$$ signs and have not read my previous posting:

.."because I wish to engage you to manage some of my money. I have engaged KC Chong, Ooi Tiek Bee and Peter Yang of Kaisutraders"

while that is lovely, offering RM20 million money management to a random stranger on i3 is also probably not advisable (could end up being another XQ situation).

also, *NOWHERE* have i Claimed to be some Superstar Investor, like much respected members KC Chong, Ooi Tiek Bee and Peter Yang of Kaisutraders.

i have merely POSED/ASKED some questions. probably a bit upsetting to hear, but thats just life i guess. i was hoping you'd reply with some answers, NOT a job offer. more work is something i really do not need.

psS. putting your email with an offer of RM20 million money management etc is going to attract the wrong sorts of attention. not only that you're going to expose yourself to computer fraud, phishing attacks you will attract a flood of spam. please do be careful.

Posted by Barbarian > 2014-07-14 13:34 | Report Abuse

My humble opinion.....
Today in malaysia is about the haves and have not. I sincerely believe this to be true and those who haves are trying to help here especially those who genuinely helping for FREE here ....take the pointers keep in your pocket...its free. if you see the information in future being in line with what you observe, use it. No harm as long as they are not selling to you and then not taking responsibility.

Posted by Koon Yew Yin > 2014-07-14 13:36 | Report Abuse

Fat Cat Tim Buddy, I do not think these 3 managers like me to tell in this forum the amount of fees I pay them. First you must write to me to show proof that you have a successful track record. The fees I pay will depend on your track record.

Up till now, I have not seen any article you have posted. All I see is some short stupid comments about my mistake in buying Xingquan which may be a profitable investment eventually. In spite of my telling you that I admit my mistake and beg you all to stop talking about it, you 'keep rubbing salt on my wound' as you said.

Until you post an article to show how good you are, all the readers, including me think you are just an empty drum making the loudest noise.

Posted by wt222 > 2014-07-14 13:38 | Report Abuse

I think its a wise move to get kcchong n OTB n someone with proven track records to manage some of yr funds.

Posted by arv18 > 2014-07-14 13:43 |

Post removed.Why?

Posted by skyu > 2014-07-14 13:45 | Report Abuse

So, mean nowadays only those with bonus issue rumour will jump while right issue will dive. How about dialogue?