Posted by ks55 > 2020-02-02 12:38 | Report Abuse

What have you learnt?
Counters with certain characters as major shareholders/ Directors by all means should avoid.
They have proven records of self-enrichment, not trustworthy, no integrity, and some to the extend of cheating with both eyes wide open!

Do your home work.
List down who are those in BOD that may delay your retirement planning.
Find out which one is grossly over promoted right now.
They will all exhibit herd behavior tomorrow under coronavirus tsunami.

Posted by Philip (Can I advise you?) > 2020-02-22 08:45 | Report Abuse

It doesn't matter who or where they come from. The biggest fraud affecting the Malaysian people is jho low, a Malaysian.

For me, in valuation, I keep a valuation metric that is simple and easy to use that it becomes subconscious. You should use it as well for every deal in life, not only in stocks, but general valuation of a proposal.

How to think like a crook.
1. Appeal to their greed.
2. Appeal to the fear.
3. Hide important info.
4. Make the business as complicated as possible.

For me, making money is usually a very straightforward deal that is easy to understand. So when one of those 4 criteria come up my subconscious gets worried, and if any combination come up or all 4? I just walk away, even if the business might actually be real.

Sometimes you have to just walk away.

The frauds usually have a recurrent theme.

1. Greed: a high assets base ( but low valuation), like buying a BMW for only 10,000. Or a business with 50% growing margins ( in an industry where the average is 15%), or high dividend or 10%, or a billion in cash in bank but entire company value is 200 million. Basically anything that sounds too good to be true.

2. Fear: stock had run up in price, and you fear losing out so chase further. If you don't buy now in the next ten minutes the offer disappears forever. Never be cornered to make immediate decisions. It's ok to make less, and buy in bunches after reading the quarterly report, trade journal, market review, instead of buying everything in one go. It is important to learn the difference between a temporary dip in profits and a permanent dip in profits.

3. Read the fine print. If a company promises 20% a month in gains but doesn't reveal exactly how they do it, stay away. If every company takes 50% deposit to build shoes, then collects the rest before delivery, you have to wonder why xinquan could have sold 3.6 million shoes without collecting full payment. Impairments. Risky deals. How Bernie Madoff could make 10+% growth consistently like clockwork for decades, even through crises and good years.

4. A company that has a lot of subsidiaries, where the accountants themselves get lost in the shuffle. Mark to market accounting, bizarre investments like wework ( long term lease from owner, short term lease to tenants), welife, wegrow which tried to brand everything as a tech company. Things that you don't understand but sounds amazing had nothing to do with making money.

Instead of complaining when you step on shit, it is usually more efficient to avoid stepping on shit in the first place.

>>>>>>>>>

pjseow Remember Transmile and Megan media ? The CEO s were from Malaysia and Singapore. What about ENRON , an American company who cheated on its shareholders life savings? What about the money game companies like JJPTR, MBI,GENEVA etc .These are Malaysian companies. While there are ugly Chinese, there are also ugly Americans and Ugly Malaysians.
19/01/2020 12:25 AM