GiraffeValue

[1000miles]

Hi,

How about KSH?
While it Total Debt to Equity is ~54%, it is over all in net net in 2014.
Positive cash flow, ROE >15%, net profit margain >8%
NAV increasing over the years

 

[urameshi_85]

what is "value"? how to know if value is good?

For me value is the margin of safety I have when purchasing such below book value stocks. Dr Michael Leong wrote a book before, he calls this the net tangible assets. For me I will just hold them and whether the value is good, it will be up to the market to show it to you.

Last but not least never invest with the amount that you cannot lose.

 

[Dividend Hermit]

I have same view as the rest. Don't like the frequent rights issue.

 

[JobHunter]

Hi,

How about KSH?
While it Total Debt to Equity is ~54%, it is over all in net net in 2014.
Positive cash flow, ROE >15%, net profit margain >8%
NAV increasing over the years

It didn't appear in my screener for a couple of reason.

- P/B 0.91 [failed]
- Debt to Equity(AR2014) 0.670 [face palmed]

I do like the low P/E 4.773, Avg 6%+ div yield with <0.3 payout.
Just doesn't fit my values criteria.

Maybe you can checkout AP Oil as well, also super high ROE over past 10 years trading below NAV

 

[backsight]

For me value is the margin of safety I have when purchasing such below book value stocks. Dr Michael Leong wrote a book before, he calls this the net tangible assets. For me I will just hold them and whether the value is good, it will be up to the market to show it to you.

Last but not least never invest with the amount that you cannot lose.

how much is your margin of safety usually?10%,20%?

 

[Shion]

Any ideas on these few...

Penguin
Select
Neo Group

Thanks

 

[wahkao3]

Any ideas on these few...

Penguin
Select
Neo Group

Thanks

are these good ?

 

[havetheveryfun]

are these good ?

where the penguin uppercut picture ?

 

[Shion]

are these good ?

Stop pretending

 

[wahkao3]

Stop pretending

wadz there to pretend??

 

[Shion]

wadz there to pretend??

You know it yourself.

 

[wahkao3]

You know it yourself.

y cant i take a back seat and ask for advise?

 

[JobHunter]

GiraffeValue • Hong Fok Corp Ltd • Ugly Money Monster

 

[urameshi_85]

how much is your margin of safety usually?10%,20%?

20% from the net tangible asset value unless its a blue chip. I look at dividends also.

 

[1000miles]

Thanks!

Good but its a S Chip.
I prefer not to touch any S Chip.

It didn't appear in my screener for a couple of reason.

- P/B 0.91 [failed]
- Debt to Equity(AR2014) 0.670 [face palmed]

I do like the low P/E 4.773, Avg 6%+ div yield with <0.3 payout.
Just doesn't fit my values criteria.

Maybe you can checkout AP Oil as well, also super high ROE over past 10 years trading below NAV

 

[Shion]

wow the management team pays themselve sooo much in this small company

that's why i really tend to avoid those small family owned businesses... their often then to reward themselves a lot more than they want to reward shareholders

Of course...Being small family owned business, definitely will pay themselves more. Same logic applied to those non-listed family owned business as well

I think SS also reward quite a sum for themselves, right?

 

[JobHunter]

wow the management team pays themselve sooo much in this small company

that's why i really tend to avoid those small family owned businesses... their often then to reward themselves a lot more than they want to reward shareholders

On the bright side of it, maybe one can think of them like our government - so long they still create value for the company, so long they don't deliberately destroy the value of its shareholders, and so long as the stock still remains undervalued. There's no reason to avoid such a stock. It's just the question of how much to allocate.

 

[wahkao3]

On the bright side of it, maybe one can think of them like our government - so long they still create value for the company, so long they don't deliberately destroy the value of its shareholders, and so long as the stock still remains undervalued. There's no reason to avoid such a stock. It's just the question of how much to allocate.

yes true
2nd that

 

[GiraffeValue]

7 Best Materials to Value Investing: Not The Typical To-Read Intelligent Investor Post

1. What has work in investing by Tweedy Browne.

This is the most important piece of paper that every value investors must read, it shows you all the researches and back-tests that have done by academia on value investing in a single easy-to-read paper. It answers questions such as : Is low P/E good? how about low P/B? Then which is more important? How do stocks under those categories performed during economic downturn. How about Div Yield as an indicator of performance?

Read the below as well if you have more time:

10 ways to beat an Index
The High Dividend Yield Return Advantage.

2. Eric Kong scientific approach to value investing.

About an hour video explaining the concept of investing in a portfolio of undervalued stocks can achieve a satisfactory return. So how much return is he talking about? Well is 13-15%! So how hard is it? does one required to do intensive analytic works to make it works? Somehow no, one just need to invest a portfolio of 30-50 stocks that have the lowest P/E ratio. And magic happened. Any investment made based on economic prediction is just hocus-pocus.

3. Show Me The Money: Sound Principles To Grow Your Wealth

I can’t stress how much great stuff Teh Hooi Ling has in this book. It contains years of valuable research and write-up on value-investing, general finance and personal finance. Structured in an article by article format, which contains simple graph and table of data. Most importantly is – You Can Understand and is in Singapore Context!

I’m not sure is it just me, I got inspired by her quite a lot and understand the importance of carrying out further research than simply listening to the hearsay. I like the part where she shared how she carries out research whenever she heard something interesting or general statement made by the public.

Recommend articles:

Time the market based on valuations, not news flows
Who’s Afraid of Equities?

4. Peter Lynch Lecture Video

Great video by legendary investor Peter Lynch, clearly a must-watch for any serious learners of value investing. The reason why I do not recommend his book rather than this video is because I don’t really find his books very helpful in most cases. The approach involve too much of a personal judgement, and it is certain that average retail investors following his approach will likely make more mistake than not. Nonetheless both of his books One Up On Wall Street & Beat The Market are good read.

5. Greenbackd.com

Greenbackd.com

Recommend articles:

How to beat The Little Book That Beats The Market: An analysis of the Magic Formula
Benjamin Graham’s “Foolproof Method of Systematic Investment”
EP25: Deep Value Investing – with Tobias Carlisle

A Must-Follow blog for any serious learner, Tobias Carlisle has produced some of the most amazing back-test finding on value investing. Some of the data might not by that easy to understand but nonetheless his conclusion and explanation is enough to make average investors to understand his points.

I wanted to mention about Deep Value as well, but since this post is about what I have benefited the most and I’ve yet finish the book so I will hold my comment until I’ve finished reading it.

At this point I recommend readers to do some read up on EV/PBIT over here or at your own Google’s findings.

6. Tobias Carlisle on Google Talk

Tobias Carlise over here introduces some of the most interesting phenomenal known as mean-reversion. And also talks about how behavioral error is a big thing that affects our investing decision without us realizing it. I most like the part where he shared about simple proven model outperforms human’s judgement with the same model.

7. The Manual of Ideas

This book touches all the concepts of value investing that you have watched or read from the above with additional findings and view points. It introduces the concept of Sum-Of-All-Parts something which I’ve no real experience applying it, and I think is very easily overvalued a stock with SOAP. Anyway I’m not the best person to comment on this.

One good thing I like about this book is that it talks about the downside of value investing that most of the above do not, for example how things can still go wrong despite you are buying a company with great asset and trading below its intrinsic value.

 

[GiraffeValue]

It has been quite a while since I last posted. Two blog post for you today.

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