Posted by cpng > 2015-09-24 20:09 | Report Abuse

幸好这里还有像KC CHONG 的股市明灯，值得我们尊重。

Posted by Flintstones > 2015-09-24 21:26 | Report Abuse

kcchong, it has been a while since you recommend us new stock picks. Why not do one?

Posted by Probability > 2015-09-24 21:32 | Report Abuse

agree with you Flintstones...it would be nice to have one from KC.
despite having learnt some basic knowledge in reading Financial statements...do feel difficult to do own research and analysis to come
up with a good stock.

But...we just have to bear in mind...whatever one recommends..it is finally our own decision to buy the idea or not...and we are fully responsible for that...he he

Posted by kcstone > 2015-09-24 21:34 | Report Abuse

topic repeated dozen of times. only change title. boring. zzz

Posted by donfollowblindly > 2015-09-24 22:31 | Report Abuse

Agree with kcstone. Even his own 2015 stock pick(Coastal, Elsoft for eg) doesn't work. Somemore want to charge people money.

Posted by donfollowblindly > 2015-09-24 22:34 | Report Abuse

Finally admitted he lost all his money punting in Maybank , AirAsia and Mudajaya CW.

Posted by donfollowblindly > 2015-09-24 22:43 | Report Abuse

BIMB-W & MRCB-W are some of his 2014 stock picks which still lose money until today.

Posted by kai8994 > 2015-09-24 23:56 | Report Abuse

He repeated this many times bcz he still cares about you :)

Majority of investors still don't make money despite plenty of good knowledge are easily available nowadays. This is fact.

Posted by Frank Soweto > 2015-09-25 05:49 | Report Abuse

Yes he has mentioned many times the good and the bad n if u still followed blindly only on the bad then it's on u LOL but I find this article as good as the rest that he has written.
Even WB considered one of the best in value investing also lost on some of his picks as unforeseen circumstances can pop up when unexpected but as long as one realized it and diversify well enough investing with good MOS in the long run always will come out well :)
Coastal is a good well manage company but due to the oil collapsed it was affected. Elsoft juz had a poor QTR compared to last year n could be juz a blip but with the good balance sheet they both will be able to weather the storm unlike the balance shits of General Lee's - That one haha dun ever follow blindly :)

Posted by NOBY > 2015-09-25 08:39 | Report Abuse

Value investment works as a diversified portfolio... its unavoidable tht some picks do not work out.. the important thing is that the portfolio as a whole generates market beating returns....

Posted by Kevin Wong > 2015-09-25 11:00 | Report Abuse

Invest long, live well and prosper...everybody!

Posted by value88 > 2015-09-25 12:13 | Report Abuse

Hi KC, what about the net-net stocks, do they work in Bursa ?
People invest in net-net stocks with the "hope" that something good will happen in near future so that their asset value can be realised. But the "hope" may not realise in Bursa or takes too long until the return is minimized. Although net-net stocks work for Walter Schloss in USA many years ago, I wonder can it work in Bursa in present years ?

Posted by Intelligent Investor > 2015-09-25 12:21 | Report Abuse

donfollowblindly, i seriously think that you have to understand what mr. Chong write instead of just buy what he mentioned in the article.

Posted by NOBY > 2015-09-25 15:22 | Report Abuse

value88, if you recall Walter Schloss invested in hundreds of companies. This is because his method was more quantitative drive with not much regard for management...
I think for net nets, it is important to diversify broadly to achieve the desired results over the long term. I dont know of any studies done in Malaysia, but this link shows that Low Price to book and high dividend yield strategy works well in Singapore.

https://www.youtube.com/watch?v=LLOJna7EUK0

Posted by Lcube > 2015-09-25 15:47 | Report Abuse

Good article.Though the concept is repeating again & again,but with different presenting methods,it always yields new insights after reading it.I did a tough decision to cut loss on KNM & naim few months ago with 5 digits loss after reading mr. chong articles about value investing concept.No regrets.Please keep the good work!

Posted by cherry88 > 2015-09-25 17:18 | Report Abuse

Structure Warrants ? Why not trying Call / Put KLCI Warrants. It works in the volatile market recently.

Posted by kcchongnz > 2015-09-25 18:59 | Report Abuse

Posted by cpng > Sep 24, 2015 08:09 PM | Report Abuse
幸好这里还有像KC CHONG 的股市明灯，值得我们尊重。


Thanks for your kind words.

Seriously I see you are a very experienced hands on type of investors. Your comments (not the above, but others) are very useful, I would say extremely useful, for wanna be get rich quick investors.

Posted by kcchongnz > 2015-09-25 19:39 | Report Abuse

Posted by Flintstones > Sep 24, 2015 09:26 PM | Report Abuse
kcchong, it has been a while since you recommend us new stock picks. Why not do one?


This was what an investment coach, Safal Niveshak said when asked to give tips, well said Safal:

Short answer – Please spare me!

Long answer – See I told you, the stock market is not a place for you. You will ask for my tips, and God forbid, I give you some, you will blindly invest in them. Then, when those stocks fall and you lose money, you will abuse me and tell me what a fool I am.

So, let me tell you upfront that I am a fool with no good stock tips to offer. Plus, I have been wrong many times in the past. As Jesse Livermore is supposed to have said:

Tips! How people want tips! They crave not only to get them but to give them. There is greed involved, and vanity. It is very amusing, at times, to watch really intelligent people fish for them. And the tip-giver need not hesitate about the quality, for the tip-seeker is not really after good tips, but after any tip. If it makes good, fine! If it doesn’t, better luck with the next.

It has always seemed to me the height of damfoolishness to trade on tips.

Tips are just that. Tips. Following blindly is setting you up for epic ruin. First of all you have no idea what position that tipper is in. He may not even hold the stock he is recommending. Even if he is, you have no idea when he will unload his lot. Suppose he is selling his stock to you. Then you would be forced to dump it to someone else for a higher price.

Got it? No? So again, please spare me!

Posted by yungshen1 > 2015-09-25 19:50 | Report Abuse

kcchong u in well fundenmental analze.well done.many newbie will learn from u.

Posted by kcchongnz > 2015-09-25 20:19 | Report Abuse

Posted by value88 > Sep 25, 2015 12:13 PM | Report Abuse
Hi KC, what about the net-net stocks, do they work in Bursa ?
People invest in net-net stocks with the "hope" that something good will happen in near future so that their asset value can be realised. But the "hope" may not realise in Bursa or takes too long until the return is minimized. Although net-net stocks work for Walter Schloss in USA many years ago, I wonder can it work in Bursa in present years ?

I have written an article about my experience in Graham net net investing in Bursa here:

http://klse.i3investor.com/blogs/kcchongnz/56472.jsp

Here is an update of the return of the portfolio and individual stocks in the portfolio. The portfolio returned an average of 25.2% and a median of 17.1%, compared with the 5.3% of the broad market. There were only two out of 10 stocks have negative return of 17.5% each. There were huge positive return for KESM (+108%), KSL (+60.4%), and Hezxa, +47.2%.

So balance sheet investing is about Heads I win, Tails I don't lose much. Sounds good?

Graham net net return
No. 25/9/2015 Ref price Now Dividend Gain/loss return
1 Daiman 2.630 2.050 0.120 -0.46 -17.5%
2 KSL 1.010 1.520 0.100 0.61 60.4%
3 Plenitude 2.100 2.000 0.120 0.02 1.0%
4 Insas 0.552 0.710 0.020 0.18 32.2%
5 PMCorp 0.150 0.190 0.000 0.04 26.7%
6 Hexza* 0.635 0.845 0.090 0.30 47.2%
7 Prkcorp 2.820 2.730 0.300 0.21 7.4%
8 Kuchai 1.200 1.230 0.020 0.05 4.2%
9 KESM 2.040 4.180 0.060 2.20 107.8%
10 FACB 1.260 0.970 0.068 -0.22 -17.6%

Average 1.44 1.64 0.09 0.29 25.2%
Median 17.1%
KLSE 1627 1615 98 86 5.3%

Posted by kcchongnz > 2015-09-26 05:26 | Report Abuse

Posted by cherry88 > Sep 25, 2015 05:18 PM | Report Abuse

Structure Warrants ? Why not trying Call / Put KLCI Warrants. It works in the volatile market recently.

Call and put warrants, aren't they structured warrants?

If you understand and are good in them, go ahead and punt them in the US market, Hong Kong market, or maybe the Singapore market where there is less manipulations or just can't be manipulated. For example in the US market where there is liquidity, and plenty of structured warrants with calls and puts of the same underlying share with same expiry dates, where put-call parity exists. But are you as good as, or even close to others? How much do you know about option?

In Bursa, as I have said, it is best just to avoid them as described in this article.

How many people make or have lost money in call or put warrants in Bursa, percentage wise? Your input is appreciated.

Posted by cherry88 > 2015-09-26 09:20 | Report Abuse

Thanks kcchongnz. I was told it is "good margin" counters recently. Just need a 2nd opinion...Thanks so much...I got what your mean.

Posted by kcchongnz > 2015-09-26 13:05 | Report Abuse

Posted by Ezra_Investor > Sep 25, 2015 05:36 PM | Report Abuse

Mr kcchongnz, may I ask a simple question?
Can you count EBIT by using profit before tax add back finance cost?
(Instead of Revenue - Operating Expenses or Net Income + Interest + Taxes?)


Just look at a typical income statement below then you may be clearer what is EBIT, or operating income.


*000 2014
Revenue 1590472
Cost of sales and services -1298151
Gross profit 292321
Other operating income 9189
Selling $ distribution -39590
Administrative expenses -72300
Other expenses 0
Profit from operation, EBIT 189620
Finance costs -7142
Share of associates 3789
EBT 186267
Taxation -34766
Net Income 151501

Posted by Kelvin Loh > 2015-09-26 14:20 | Report Abuse

Short answer – Please spare me!

Well said, KC.

Posted by kcchongnz > 2015-09-26 16:35 | Report Abuse

Posted by yungshen1 > Sep 25, 2015 07:50 PM | Report Abuse
kcchong u in well fundenmental analze.well done.many newbie will learn from u.

The truth is unlike in more advanced markets, few, very few people in Bursa have any urge to learn about something so important for their financial well being. Look at the comments below:

This one hopes for tooth fairy in Bursa.
Posted by Flintstones > Sep 24, 2015 09:26 PM | Report Abuse
kcchong, it has been a while since you recommend us new stock picks. Why not do one?


This wants excitement which in reality, true investing is like watching paint dry:

Posted by kcstone > Sep 24, 2015 09:34 PM | Report Abuse
topic repeated dozen of times. only change title. boring. zzz

This one has been a big loser following everything blindly, without reading and understanding what is the message transpired.

Posted by donfollowblindly > Sep 24, 2015 10:34 PM | Report Abuse
Finally admitted he lost all his money punting in Maybank , AirAsia and Mudajaya CW.

The same loser here only know what price is without knowing what is value. He just can't understand anything I have written in those articles explaining what these instrument are and how they work.

Posted by donfollowblindly > Sep 24, 2015 10:43 PM | Report Abuse
BIMB-W & MRCB-W are some of his 2014 stock picks which still lose money until today.


But these are the exactly reasons why fundamental value investing still work, and it will continue to work for a long time to come.

So anyone wishes to have an edge in investing in Bursa, there is no other way.

Posted by Ezra_Investor > 2015-09-26 17:23 | Report Abuse

Got it, it can be counted by reversing them.
Thank you Mr KCChong.