@geary - You're welcome. I enjoy your writings on value investing too. I agree with your point there, when it comes to value investing, many do not fully understand it, as they have little to no patience for value investing.
But little did they know: "The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett.
The Intelligent Investor, is indeed one of the best book on investing I've ever read.
Hi.. This moving sideway stock has caught my attention recently. Plan to slowly invest for long term in this stock, may I ask what's the reason you guys holding FLBHD ?
Most Ready-to-assemble (RTA) furniture makers keep taking in orders non-stop ah. Demands are so good that RTA makers have to expand and many other companies starting RTA segments of their own. Ur fengshui master conned u lah so u should "pecat" ur fengshui master.
Feng shui is wrong with POH Huat! Tomorrow it will fly... Furniture stocks all doing well... FLB is a matter of time....and let the coming QUARTER results speaks ! Haha!
Earnings growth prospects is Bullish going forward in few months time. EPS n cash flows growth are two main forces that will skyrocket the market value of any company. Others like special dividend, free warrant, bonus share n corporate buy-out are bullish signs. Erratic or flat earnings prospects will be bearish. Another good sign is high free cash flow, any company that have the FCF of more than 5x its market value: Conviction 100%. Thanks!
50-SMA it looks bearish. Undervalued at present price. Wz earnings growth above 11%, its PEG is around 0.8, at present price. Rationally its PE should be above 11x earnings or higher. Thanks!
Hi..@10bagger10... hope one day u will win a 10 baggers! If u want to 100% conviction, to put all your eggs into one basket, then the price must be 0.32. So u get PE of 2 times of FCF per share of 0.16. Thanks!
Consider very rare breed, if u found any in Bursa. But the earnings, cash flow, n free cash flow must be consistent n stable. The company must have consistent dividend payments, bonuses, etc for at least 10 years. No issued of rights, new shares or private shares to raise capital the past years. Plus zero debt. Thanks!
Buffett doesn't use diversification to mitigate risk. Instead he reduces risk by examining businesses closely n understanding their competitive advantage. Buffett, " Keep all your eggs in one basket, but watch the basket closely. Diversification is a protection against ignorance. It makes very little sense for those who knows what they're doing". "We make no attempt to pick a few winners that will emerge from an ocean of unproven enterprises. We're not smart enough to do that, n we know it. Instead, we try to apply Aesop's 2,600 year-old equation to opportunities in which we have Reasonable Confidence as to how many birds are in the bush and when they will emerge". Thanks!
Buffett, "We have long felt that the only value of stock forecasters is make fortune tellers look good. Even now, Charlie n i continue to believe that short-term forecasts are poison n should kept locked up in a safe place, away from children n also from grown-ups, who behave in the stock market like children". "In the 54, Charlie n i, have worked together, we have never foregone an attractive purchase because of the Macro or Political Environment, or the Views of Others. In fact, these subjects never come up when we make decisions". "So smile when you read a headline that says, 'Investors lose as market falls '. Edit in your mind to 'Disinvestors lose as market falls; but investors gain. Trough writers always forget this Truism, there is a buyer for every seller and what hurts one necessarily helps the other". "The most common cause of low prices is pessimism, sometimes pervasive n sometimes specific to a company or industry. We like to do business in such an environment, because of the prices it produces. It's Optimism that is the Enemy of Rational buyer." Thanks!!!
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Posted by Ezra > 2017-03-17 16:00 | Report Abuse
@geary - You're welcome. I enjoy your writings on value investing too.
I agree with your point there, when it comes to value investing, many do not fully understand it, as they have little to no patience for value investing.
But little did they know:
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett.
The Intelligent Investor, is indeed one of the best book on investing I've ever read.