Posted by probability > 2019-04-12 18:20 | Report Abuse

feeling hungry for milk now....

Posted by Heavenly PUNTER > 2019-04-12 18:34 | Report Abuse

HAHAHAHA good article thanks unker!

Posted by arv18 > 2019-04-12 21:25 | Report Abuse

thanks for the article.

Posted by nckcm > 2019-04-12 21:26 | Report Abuse

Cash cow like hibiscus kah..? Penta also cash cow

Posted by sell > 2019-04-12 22:13 | Report Abuse

Why this blog no charge fee sentence?

Posted by dnlt > 2019-04-13 12:15 | Report Abuse

The risk with Magni is the concentration of Nike as the main customer. If only they can get more diversified customers, this company should trade at higher multiples. They have been trying to get other customers, but so far Nike still dominates.

The revenue & earnings has topped at year 2017. Seeing it dropping from RM8 is painful (although company gives dividend each quarter). So far waiting the new plant in Vietnam to operate and hopefully that comes with better revenue and earnings.

Posted by fl888 > 2019-04-14 05:27 | Report Abuse

On assumption that DPS gets MSIG Fire Insurance Claim of RM22 million and HSBC RM17 million Fire Insurance Claim, can DPS be classified as a Cash Cow Company ?.and be a subject of a takeover or privatization target...

Posted by kcchongnz > 2019-04-14 05:53 | Report Abuse

Posted by fl888 > Apr 14, 2019 5:27 AM | Report Abuse
On assumption that DPS gets MSIG Fire Insurance Claim of RM22 million and HSBC RM17 million Fire Insurance Claim, can DPS be classified as a Cash Cow Company ?.and be a subject of a takeover or privatization target...

You need to understand what a cash cow is which this article is trying hard to explain to you.

You are not the only one who doesn't understand it. I would say a big majority don't understand it also.

That is why I try to entice people to learn the fundamentals of investing, the language of business.

Posted by RainT > 2019-04-14 12:09 | Report Abuse

Magni grow story is not exciting and share price up and down ....also link with Nike sales

Carllsberg is at high price now plus with government tax is high

Both is not good company

Posted by kcchongnz > 2019-04-14 12:50 | Report Abuse

Posted by RainT > Apr 14, 2019 12:09 PM | Report Abuse
Magni grow story is not exciting and share price up and down ....also link with Nike sales
Carllsberg is at high price now plus with government tax is high
Both is not good company

You have to differentiate what a good company is, and what is a good investment. They aren't the same.

Carlsberg is used as an example on how to look for cash cow, or a good company. I never talked about its price.

5 years ago I shared my first piece on Magni in i3investor here,

https://klse.i3investor.com/blogs/kcchongnz/51356.jsp

The adjusted share price of Magni was less than RM1.00.

Whether it is a good company, it was the same issue; single main customer, traditional no moat business, none of its own brand etc.

Since then, its revenue has doubled, or for a CAGR of about 15%, and operating and net income more than 2.5 times,or a CAGR of about 20%. Its share price went up to a peak of RM7.50 three and a half years later, for a gain of 650%.

Again it has no debt and abundant cash in its balance sheet, stable and increasing earnings and cash flows. no wonder it has been paying very good dividend all these years.

Yes, single main customer is risky. But on the other side, if I am Nike and I am growing my business in such a speed, I will prefer a proven reliable and capable sub-contractor and supplier, especially his price is not much different from other new fellows. Nike's advantage comes from its brand, and not so much from the input cost.

Now whether it is a good investment,

At 4.52, magni is trading at a PE of just 7.3, enterprise value just 4 times operating profit, and a cash yield of 12%.

Posted by qqq3 > 2019-04-14 14:31 | Report Abuse

RainT > Apr 14, 2019 12:09 PM | Report Abuse

Magni grow story is not exciting
===============

exciting is stock with great stories.........stocks with infinite Total Accessible market. ( TAM )......stocks with X factor.

Posted by 4444 > 2019-04-14 14:35 | Report Abuse

Cannot buy pasar malam shoes to wear?

Posted by qqq3 > 2019-04-14 14:43 | Report Abuse

scouting for cash cows.........but many are moody cows.

Posted by qqq3 > 2019-04-14 14:55 | Report Abuse

cash cows or sick cows? how is the business environment? and they keep changing

Posted by qqq3 > 2019-04-14 14:56 | Report Abuse

yesterday cash cow quickly become tomorrow sick cow.

Posted by kcchongnz > 2019-04-14 15:15 | Report Abuse

Posted by qqq3 > Apr 14, 2019 2:56 PM | Report Abuse
yesterday cash cow quickly become tomorrow sick cow.

In less than a year, Sendai and Jaks become terminal ill cockroach, while the cash cows magni giving more and more milk.

Posted by qqq3 > 2019-04-14 15:40 | Report Abuse

Investors classify IPPs as cashcows.....that is correct all over the world.

Posted by stockraider > 2019-04-14 15:47 | Report Abuse

A MATURE POWER PLANT ,YES CAN BE CASH COW , BUT NOT THIS JAKS INVESTMENT LOH....!!

IT WILL DRAIN THE CASH OF JAKS FOR THE NEXT 7 YRS LOH....THAT MEANS NO DIVIDEND WILL BE PAID LOH....!!

Posted by qqq3 > Apr 14, 2019 3:40 PM | Report Abuse

Investors classify IPPs as cashcows.....that is correct all over the world.

Posted by Fabien Extraordinaire > 2019-04-15 15:45 | Report Abuse

Hong leong industries fits the bill. cash cow (strong FCF) plus earnings growth.

Posted by enigmatic > 2019-04-18 11:51 | Report Abuse

cash is king when the economy is bad

Posted by qqq3 > 2019-04-18 11:55 | Report Abuse

cash is King is going to jail soon

Posted by enigmatic > 2019-04-18 11:59 | Report Abuse

when economy is bad and all stocks are down, it's the time to unload the cash that one has been hoarding to accumulate beaten down quality stocks. don't forget 1998 and 2008 crisis. best time to colelct.

Posted by qqq3 > 2019-04-18 12:13 | Report Abuse

not flight to cash.....flight to quality, flight to export shares.

Posted by Fabien Extraordinaire > 2019-04-18 14:13 | Report Abuse

ringgit selldown likely to continue. market is waiting to see if the passive funds are selling their holdings of govvies. more downside to the ringgit if Malaysia indeed to be excluded from the FTSE bond index.

export theme may comes back.

Posted by stockraider > 2019-05-26 13:39 |

Post removed.Why?