yesterday i was watching a video on physics, it thought me something, the big picture of physics, although I score very well in Physics during my school days, but there were things which I found which is way behind what should be. I'm going back to learning physics, not as a career but rather interest, to find the TRUTH. I have a good foundation in physics, so i bet i can move back up very quickly, i have ideas where to start from. Is just there, I need to be there.
there's something else, interesting, the way the physicists who discovered things, i'm going to look at their finding in a more detailed way and how they discovered it, by exploring their way of thinking
What about MPH? Owned by Syed Mohktar Albuhkari. A strong supporter of Tun Mahathir. His MPH office hq and warehouse is right in PJ Sek.51. MPH (Malaysia Publishing House)
Ben Graham Checklist for Finding Undervalued Stocks
ONE PAGE QUICK ANALYSIS OF A STOCK An Aid to your Stock Selection
COMPANY NAME: SASBADI DATE OF ANALYSIS: 27.1.2019
For each question below, answer YES or NO
Criterias
Risk 1. Earnings to price (the inverse of P/E) is double the high-grade corporate bond yield. If the high-grade bond yields 7%, then earnings to price should be 14%. NO 2. P/E ratio that is 0.4 times the highest average P/E achieved in the last 5 years. NO 3. Dividend yield is 2/3 the high-grade bond yield. NO 4. Stock price of 2/3 the tangible book value per share. YES 5. Stock price of 2/3 the net current asset value. NO
Financial strength 6. Total debt is lower than tangible book value. YES 7. Current ratio (current assets/current liabilities) is greater than 2. YES 8. Total debt is no more than liquidation value. YES
Earnings stability 9. Earnings have doubled in most recent 10 years. NO 10. Earnings have declined no more than 5% in 2 of the past 10 years. NO
Essentially, Calvintan is bullish on this stock because it is priced below its NTA.
He believes that the recent education budget is going to turnaround Sasbadi.
Surprisingly, he discounted everything else.
This is not investing. It is speculating.
No wonder his stock selections have been terrible for years.
Since price remains cheap I will talk more about Sasbadi
Once price runs away like
Opcom(opcom went double limit up after Ge14
Htpadu(Last week HtSapu) up 100% suddenly
Carimin(Up 50% after Kyy promoted)
I immediate warn people not to chase anymore
So now that Sasbadi still cheap I will be happy to buy some more. Why?
Answer:
1. Last time when Badawi announced huge 9MP or 9th Malaysia Plan projects I immediately bought up all cement companies like
Ytl cement at rm2. 20 Cima at rm2. 40 Tasek rm2. 90 Lafarge at 66 sen Later all cement companies went up in tandem
Both ytl cement and Cima were taken private by ytl and uems later
As for Tasek it shot past rm16. 00 And Lafarge after 4 to 1 rose to Rm10
So with rm60. 2 billions pumped into education I think all should do OK. Only Sasbadi is top buy because of its capturing the lion share of the market
2. Another booster comes from mandatory education up to Spm. Parents who failed to do so might be sent to jail. This is how serious tun Dr M view education
3. As sasbadi has fallen to so low level Value has emerged. Danger of further losses are minimal.
4. Since education is internal there is less contagion from fall out due to US China trade war uncertainty. So Sasbadi is an insulated stock from crisis elsewhere
5. Calvin likes to buy where Syndicates are Sharks are not around. So it is now a safe buy.
Of course price can still go lower in spite of strong turnaround fundamental
In that case I will buy and still keep some bullets to buy more if price goes lower
Raider got annoyed when people ask stupid question especially from 3iii loh....!!
Why leh ?? If raider says make alot, bcos buy alot and make millions 3iii will be very jealous of raider mah....!! If raider says make not much, bcos did not buy very much, bcos no monies and no confidence, 3iii will laugh at raider loh...!!
So how to answer leh ??
The truth is, raider make alot loh...!! Why leh ?? Bcos it is core margin of safety stock pick of raider during that time mah...!!
Margin of safety buys are investment & not speculation mah...!!
Bcos if u buy the stock with huge undervaluation and big margin of safety so it is investment and u buy alot, bcos u know u can sleep soundly bcos of big margin of safety mah loh....!!
Posted by 3iii > Jan 28, 2019 10:46 PM | Report Abuse
Ok, I sense you were annoyed with the word, bet. My apologies.
Raider and his colleague, Calvin, How much money you invested with margin of safety into each of these stocks. Thks.
Posted by stockraider > Jan 28, 2019 07:25 PM | Report Abuse X
U r wrongloh....Lcth, insas, gsb, pmcorp when there all turnaround offer 3 baggers loh...!!
3iii usually wrongloh....thats why kena whack by raider loh...!!
Posted by 3iii > Jan 28, 2019 07:15 PM | Report Abuse
In my very long experience, most gruesome companies remain gruesome for a long time.
Turnarounds rarely turn, or abeit very slowly.
The catalyst must be certain, not just a speculation.
If you must play, be very sure of your entry point and also your exit.
Speculate if you must, do not be foolish to make big bet and never add more to it (unlike Mr1015 in QL).
Also, you are unlikely to get fabulously rich on speculative returns.
One more thing as EPF is selling Last time when I bought Lafarge at 66 sen I saw millions of Lafarge shares thrown out at 66 sen Tens of millions of Lafarge shares were sold when I was buying. Later Lafarge merged 4 shares into 1 and price rose to a high of Rm10
Last round EPF also threw down Hengyuan to Rm2. 00. And Hengyuan rose to Rm19 later
Another way of looking at Sasbadi is from the Theme Play angle
1) When Bawadi Pumped money into Infrar projects the best buys were steel & cement
2) When Ringgit Crashed against US Dollar the theme play was Export Furniture Stocks like Pohuat, Lihen, Latitude & Hevea
3) When Govt implemented GST the play was MyEG, Nova & Ifca (this one fake)
4) When Govt implemented Langat 2 theme play was water like Jaks
5) When Govt relaxed rules and No tax for real estate property stocks went into bull run
6) When Govt built 7 highways the play was Prestar for guard rails
So there is a CAUSE & EFFECT
Find the Cause... then the effect!
SO GOVT JUST DID 2 THINGS
1) PUMPED THE MAXIMUN CASH EVER IN MALAYSIA'S HISTORY INTO EDUCATION - A WHOPPING RM60.2 BILLIONS FOR EDUCATION!
2) MANDATORY FOR ALL STUDENTS TO STUDY UP TO SPM OR FINE PARENTS AND SENT THEM TO JAIL? THAT MEANS THAT EVERY CHILD BORN IN MALAYSIA MUST HAVE 10 YEARS COMPULSORY EDUCATION
fk u calvin teng u are a holland sifu in i3 still got balls to post, i got save many of ur calls in watchlist 95% all calls made are lost, damn this noob never learn i think u go read books more than making post like this
KUALA LUMPUR: Book company Sasbadi Holdings Bhd is now poised for a strong 2019 after having gone through some tough times.
Sasbadi group managing director Law King Hui said it had weathered the storm arising from weaker retail sentiment over the past two years.
The company is now in better footing now after having implemented cost-cutting measures to improve efficiency and diversify its business.
“We are now more confident about our directions and the current state of the country’s economy,” he said, citing that government had taken proactive measures to revive the economy.
“For the financial year ending August 31, 2019 (FY19), we expect better results from all the non-academic related segments, while achieving better efficiency in our marketing and sales efforts to attract partners in overseas,” Law told reporters after Sasbadi’s annual general meeting yesterday.
Sasbadi’s net profit rose 84 per cent to RM4.38 million in the first-quarter ended November 30, 2018 from RM2.38 million a year ago.
Its revenue grew 10.9 per cent to RM30.50 million from RM27.51 million. Tis was attributed to higher contribution from its print publishing division due to new textbook contracts with the Ministry of Education (MoE), non-academic products and contribution from the sales of Marshall Cavendish Education products.
Law said Sasbadi was optimistic about growing its presence in foreign markets, leveraging on its sales of intellecttuall property (IP) rights and contents for export market.
Sasbadi’s exports diversification is expected to provide better earnings visibility from the collection of payments of the guaranteed ‘passive’ income.
“We expect to improve our sales not from our traditional print-publishing business but also our export segment focusing on education (pre-school), reading for pleasure and non-academic such as comics and novels.
“We are positive on 2019’s growth as we embarked on various activities to gain better earnings,” he said.
The company will aggressively partake in book fairs in Frankfurt, London, Shanghai, Beijing and the Middle East to attract potential partners for the sales of IP rights.
“This mainly involves licensing agreements with partners where we sell our IP rights by allowing them (partners) to print and market the contents in their respective countries.
“We will then get upfront payments from our partners for the minimum sales of books. Partners also need to report and update us on their 12-month sales performance for our royalties payments involving copies sold,” he added.
The company had last year signed with publishers in Vietnam and China for a total of 48 books as well as other deals for comics.
“We had also collected RM200,000 for the upfront payment paid by our partners. We also follow up with other potential partners in overseas including US, China and Pakistan to expand our export market,” he said.
He said Sasbadi will also step up its marketing efforts in the rights licensing and book export market as part of its efforts to grow export-based revenue.
Law pointed out that Sasbadi aims to expand its business reach from the current print-publishing to more targeted market such as digital with augmented reality (AR) technology.
“We have in-house expertise in developing this reading technology contents. We are able to face the challenges and deliver digital education programme to fulfil the market needs” he said, adding the Sasbadi did not require capital expenditures but rather reward its existing staff to enhance its digital technology contents.
Law believed the print-publishing market is still relevant for the company backed by the new government transformation programme comprising new textbook contracts and other tenders with the Ministry of Education (MoE).
“MoE received the highest budget allocation for the Budget 2019 about RM60.2 billion. We hope to benefit from more tender opportunities being offered.
“We are optimistic of the government’s initiative to promote Malaysia as a reading nation by 2030 for the 10-year programme. UNESCO had also chose Kuala Lumpur as the World Book Capital for 2020.
Its revenue grew 10.9 per cent to RM30.50 million from RM27.51 million. Tis was attributed to higher contribution from its print publishing division due to new textbook contracts with the Ministry of Education (MoE)
both are rite maa..no need to fight each other..u got ur views.the other got their views.. no trading/investing plan is same here.. ur target is diff with each other..u want to chase, its all urs.. the other want to steady n relax, its all theirs... u think make a handsome profit with ur style go on.. also viceversa.. facts are there.. nothing to hide 2.0..hahhaha..
if u are using the checklist as ur based..also can..
but do remember stocks are analized with several factors ex;sentiments, not only FA maaaa.. want an example..just see the fgv..run the test see how..
i do agree with calvin.. also agree with u 3iii in both using facts for ur argument..other than facts, i dont buy..and for me, as a short term trader.. only when the time is right, i'll enter and ride sasbadi..
but if this on invest type..yuppp... i'll buy and accumulate..NOW..agree with calvin and i'm not hungry for fastcash..
tq both of u that presented out all the facts..great!
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....
klee
3,525 posts
Posted by klee > 2019-01-27 22:45 | Report Abuse
Yes calvin,you also bought mpcorp from 20 sen to 4.5 sen.Big congrats.Best is,mpcorp stayed at 4.5 sen forever.