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Have a question or have something you want to get off your chest? Please drop me a message at greedy_dragon_investment@yahoo.com.my

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24 comments:

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    1. Hi, for DKSH I completely have no opinion. For Bonia I can't tell you anything specific as I didn't research the company before. However, for retailers in general you should make sure same-store-sales is increasing over the long-term. Also make sure gross margin is high relative to its competitors as that indicates pricing power and/or cheaper supplies. Also general profitability metrics such as ROE and ROA. Sorry, but that's all I know as fashion reailers are outside my circle of competence. Hope it helps.

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    1. How do I start investing into overseas stocks. What sort of account do I need? sorry noob in these area but keen to learn more

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    2. Hi, the regular account with any brokerage house will do. Just specify to the person who's registering your account (usually your remisier) that you want to trade overseas stocks. So far my family uses 3 different brokerage houses: kenaga, A&A, and RHB OSK. All three can buy overseas stocks. Just call your current remisier, I'm sure he/she can set it up for you!

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  3. Hi Justin,

    I love your way of analysing business and I wish we can talk more about value investing, but your email above doesn't seem to work (it bounced back).

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    1. Hi, sorry I for got to put ".my" at the end of my mail. please try this greedy_dragon_investment@yahoo.com.my hope to hear from u soon

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  4. Hi, Lately I come across an interesting analysis on Prestariang. Would like to recommend it to you.

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    1. Thanks! I will look into it. I personally run out of ideas for Malaysian stocks recently. lol

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  5. What do you think of MBBS.JKm listed on IDX? Fantastic buy or Value trap?

    PE FY13 4x, Net margin 40%, long term contract 2-5 years, 80% utilization.
    P/FCF is sickening at <2x

    However the coal shipping industry is on a downtrend...or at best stagnant.

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    1. Hi, Gark how are you? Didn't hear from you for a long time. I don't know about this company but there are a few general things you need to take into account.
      1)Is its contracted rate much higher than market rates (as we need to take into account contract eventually expiring)?
      2) Would the company still be adequately profitable if it has to compete in a shipping environment where shipping rates are close to all-time lows (assume that contracts are expired by then)?
      3) What is the average age of the company's fleet, and what is the general age that coal ships must be retired?
      4)Do the company has many competitors in Indonesia?. This is key for commodity companies as profits can really suffer if there's intene competition in an industry with very little opportunities for product differentiation (a commodity business).

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    2. Yes contract rate is higher.. usually for 2-5 years. Recently one of the contract is renewed with rate at 25% lower. So in the future we assume less 25% income. However with the lower rate, they have a netted a bigger contract. The net profit rate will still be similar or slightly reduced.

      Average age of ship is about 7-8 years old. Ships can be serviceable up to 30 years.

      Yes there are many competitors, but MBSS is 50% owned by a coal manufacturer (About 60% of volume), hence having a steady business.

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    3. Hmm, the info you provided is quite positive indeed for the company. You have much more information than me about this company, so you're in a better position than me to decide if it deserves your investment. Just be a bit careful as profits from commodity-like businesses can be volatile.

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    4. I am putting it on my watchlist....price a bit stagnant now, not much catalyst.

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  6. If you are interested in IDX counters, here is my watchlist for severely undervalued companies. Not a recommended buy list, but interesting companies none the least.

    MFIN - Mandala Finance
    MBSS - As previously mentioned
    BBTN - Bank BTN
    MREI - Maskapai Re-Insurance
    BTPN - Bank Tabungan Pension Negara
    BBRI - You already holding it
    WINS - Wintermar Marine

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    1. Interesting list, I will definitely look into them if I need to add more emerging market stocks to the portfolio.

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  7. Very interesting blog. Keep up the good work!!!

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  8. Hi Justin,

    I came across your article on KLCCSG while researching on the company. I have been thinking about the problem of valuing this company. Eventually, I got it down to looking at it as two separate entities: (1) the REIT entity, and (2) the property development entity. The REIT bit is straight forward enough but the property development part is tricky, partly because some of the data cannot be glimpsed from the annual reports. For example, the revenue from Suria KLCC is not specifically made known, due to the consolidation of the two entities' revenue.

    Perhaps you can enlighten me on the development business in terms of prospects, future revenue and earnings.

    JJY

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    1. Hi, JJY. To be honest I didn't even take into account the property development business. I analysed the company based on income from its properties, that's all. Any land that they own which may be developed in the future is just a bonus in my point of view,

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  9. Hi Greedy Dragon,

    What's your take on Mudajaya?

    Say if the power plants in India takes off, what's your value of the stock.

    Thanks

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    1. Hi, I have never read any financial statement of mudajaya so I don't have an opinion on it sorry. Do you think its likely the power plant will be approved? What's the stocks intrinsic value before the power plant is approved and after its approved? These are some of the questions you need to ask yourself.

      Anyway, I might look into the stock if I have free time, and if I do decide to buy I might write an article about it. Thank you for reading my blog and taking the time to write in!

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  10. Hi Justin,

    Silly question, you seem to be well invested across various exchanges in various countries.

    Which broker do you use? I assume that you're using one with a good cost advantage to your end.

    Regards,
    Khek

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    1. Hello. I use RHB OSK for my broker. I don't know if it's the lowest cost broker though as I didn't really compare with other brokers. But I keep my business with them because remisier provides good service

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