Posted by Flintstones > 2015-08-25 19:34 | Report Abuse

Your kfima is also a value trap Sir

Posted by kcchongnz > 2015-08-25 19:52 | Report Abuse

Posted by Flintstones > Aug 25, 2015 07:34 PM | Report Abuse
Your kfima is also a value trap Sir


Thanks for your statement. Maybe you should put forward your rationale, what is your context of what a value trap is, and why Kumpulan Fima is a value trap (it may well be one), so that we can learn from you and avoid value traps too. Sometimes I do get things wrong and fall into value traps. I need to curb my cognitive bias of over-confidence too.

Posted by oregami > 2015-08-25 19:58 | Report Abuse

Sir. I think every stock has an operator. A value trap stock is a stock that fails to attract any operator attention. Some of the reasons are no theme, no good business model, no expansion plan, management too shy from media ect. The operator simply can't find any reason to attract players. How can the operator play by himself?

Posted by kcchongnz > 2015-08-25 20:17 | Report Abuse

Posted by oregami > Aug 25, 2015 07:58 PM | Report Abuse
Sir. I think every stock has an operator. A value trap stock is a stock that fails to attract any operator attention. Some of the reasons are no theme, no good business model, no expansion plan, management too shy from media ect. The operator simply can't find any reason to attract players. How can the operator play by himself?

Good point. I am not sure what is your "operator" means. I presume it is some kind of share price operators, people who "play" the shares, that the business have some kind of "theme", that the management must be famous and vocal in the media to "sell" the shares, big expansion plan etc.

Well, you have your context of what a value trap is, but it is clearly different from what is written in this article. I respect your context and opinion.

Posted by gohku > 2015-08-25 20:46 | Report Abuse

No Kfima is not a value trap.
It just that Mr Market, did not realise the true value.
kfima has a declare a dividend rm 0.085.
There is yield & value in kfima,

Posted by NOBY > 2015-08-25 21:11 | Report Abuse

I view a value trap can also be buying a cyclical companny at the peak of its business cycle. Historical numbers look good... but the fact is the profitabiliry is declining...

Posted by paperplane3 > 2015-08-25 21:40 | Report Abuse

Kcchong, your elsoft also Holland now!

Posted by paperplane3 > 2015-08-25 21:41 | Report Abuse

When tide away, we know who is master and who is not, hahahahaha

Posted by joerakmo > 2015-08-25 23:50 | Report Abuse

Kc:Not wanting to go into the merits of diversifying;but London biscuits had disastrous acquisition/s (Layhong and TPC)

Posted by paperplane3 > 2015-08-25 23:56 | Report Abuse

Seems like value investment d9nt work this time

Posted by kcchongnz > 2015-08-26 06:34 | Report Abuse

Posted by paperplane3 > Aug 25, 2015 09:40 PM | Report Abuse
Kcchong, your elsoft also Holland now!

Posted by paperplane3 > Aug 25, 2015 09:41 PM | Report Abuse
When tide away, we know who is master and who is not, hahahahaha

Posted by paperplane3 > Aug 25, 2015 11:56 PM | Report Abuse
Seems like value investment d9nt work this time


I am not sure of your context of value investing too. Hope you can enlighten us. My context of value investing is described in my two articles below.

What is value investing?
http://klse.i3investor.com/blogs/kcchongnz/53835.jsp

Why value investing works?
http://klse.i3investor.com/blogs/kcchongnz/50988.jsp

Value investing follows a process of choosing stock. No doubt it can get wrong too, but the probability of being right is generally higher.
http://klse.i3investor.com/blogs/kcchongnz/79050.jsp

I am not sure which group of investors you belong to. Maybe you can teach us your way of investing, so that we can make money for every stock, without exception, today, tomorrow, next week etc. and under whatever market condition, even market/markets plunge. It would be better if you can also provide some evidence of your success, the success of a real master in the stock market

Posted by goreng_goreng > 2015-08-26 13:22 | Report Abuse

hi KC,

london choco roll~~~~~~ london choco roll~~~~~~ choco roll... choco roll.... london choco roll~~~~~~

The song keep rolling in my mind every time someone mention London Biscuit here. They succeed brainwash me.

By any chance, could we spot pump and dump counter using this method too?

ty

Posted by Mat Cendana > 2015-08-26 16:11 | Report Abuse

Very informative post which explains the difference between Apollo and LB. I guess I'll just delete LB from my list. Previously, I had thought it would be a good idea due to the perceived 'value'. Not so, as this post shows.

I'll also be paying more attention to ROE. Admittedly, all this while I'm a lot more focused on EPS. Still will be, but with ROE also taken into the mix.

Posted by Mat Cendana > 2015-08-26 16:24 | Report Abuse

@ks55 That's what I'm trying very hard to stick to despite the very tempting prices we see everywhere. Can't stay totally at the sidelines, of course - if we want to try make a profit, we must be in the game first. However, based on environment right now, I'm also being cautious. Protecting one's capital is called given the possibilities we're facing now.

For those with significant holdings in the stock market, it may be a good idea to buy some insurance "just in case". Specifically, put warrants. Should something happen, at least there will be some consolation. One will also sleep better at night knowing he is somewhat covered and not totally exposed and hapless in a sudden crash. The problem is, our local put warrants have become overpriced.

Posted by pisanggoreng > 2015-08-27 11:38 | Report Abuse

aiyah....

KC had thought us so many method to evaluate a company, ROIC, FCF, EV/EBIT,DY...
is that not enough to assess whether a company is worthwhile investing or not ?

to a income investor like me , investing is very very .. simple
I have a set of strict stock pick criteria, as long as a particular stock is still meeting my criteria ,I will not sell, even though you tell me market going to crash tomorrow. because I know very well , if you are talk about things of tomorrow , you are none other than fortune teller. it is most foolish to believe a fortune teller but not believe your own calculation

KC has thought you so much valuation techniques , why you have never learnt?

I have thought you so many time , it is near impossible to get the best deal and be wise to be happy with the right deal, why you never learnt?

if you can choose a kunyit ot musang king durian trees to plant, do you need to sell your plantation if the fruits don't fetch good price this year and hope to buy back bigger plantation next year, you have seen the gain, but you family has already missed the fruit (dividend) this year and next year

I am going to get RM 20k from gadang later . 5k from flbhd tomorrow, 2k from matrix, 5k from favco, 3k from matrix,...
do you think , I will scare of the market crash?

I will tell the market, you go on to crash, I go holidays with my family because KC valuation told me my companies will not crash with you but keep generating more dividend for to spend


no fear, no worries when you know what you are doing is not right though not the best

Thank KCChong.

Posted by pisanggoreng > 2015-08-27 11:56 | Report Abuse

ks55,

you worry too much already

why people scare of market crash?

the reason is simple,

THEY WANT TO MAKE THE MOST !

if you change your mentality to " CAN MAKE BUT THE BEST"

then kcchong articles will help you a lot

I do not pay him a sen, but I learnt a lot from , I am very happy

feel very happy

no fear, even though tomorrow KLCI drop 200 points

why?

I still got my dividend to spend or to buy more at lower price

Posted by pisanggoreng > 2015-08-27 12:10 | Report Abuse

go lah...., go and buy those companies I mentioned above

they are not value trap, they are value buys

mark my words, if anytime within 5 years from now, you can't get a capital gain of average 20% per year + reasonable dividend, come back here to tell me how do you want to punish me.

I can assure you here,

I will not tell you :THE DECISION IS YOURS" or "I DID NOT POINT A GUN AT YOUR HEAD TO ASK YOU TO BELIEVE AND FOLLOW"

hahahaha.......

Posted by babu > 2015-08-27 16:11 | Report Abuse

pisang, serious one or not ? if anytime within 5 years from now and I still quote "holding, not willing to cut loss, are grumbling, groaning and mourning" --- can punish you ? I come and cut of your most precious part i.e your pisang ? ..... make goreng pisang can ? ha ha ha you are a funny guy :)

Posted by kcchongnz > 2015-08-27 16:20 | Report Abuse

Posted by pisanggoreng > Aug 27, 2015 11:38 AM | Report Abuse
I am going to get RM 20k from gadang later . 5k from flbhd tomorrow, 2k from matrix, 5k from favco, 3k from matrix,...
do you think , I will scare of the market crash?


With those stocks, I am not afraid of market crashes too. They are all magic formula type of stocks which are for long-term investment.

Posted by pisanggoreng > 2015-08-28 09:21 | Report Abuse

Babu, 

If you are smart and rational in thinking then definitely you know what I actually want to tell you is " valuation and confident to act" not challenge to cut gu-gu-chiao .

You are very funny

Posted by babu > 2015-08-28 17:10 | Report Abuse

pisang, no offence meant - was just trying to make light of your punishment offer. I am sorry. Your comments have always been very useful in this forum and I should not have made light of your "mark my words"..... please excuse this young naïve young boy :)