IOI – the market is not rational
Over the past decade, IOI performance in terms of its ROA had been above than the sector upper quartile ROA. This is one of the betterBursa Plantation companies.
IOI achieved a 10-years peak in ROA in 2022. There seemed to be a corresponding market price uptrend. The ROA has since declined and so has market prices.
But when you look at the past 10 years ROA vs market price pattern, you can see that the current market price is lower than those from 2017 to 2021. I...
IOI achieved a 10-years peak in ROA in 2022. There seemed to be a corresponding market price uptrend. The ROA has since declined and so has market prices.
But when you look at the past 10 years ROA vs market price pattern, you can see that the current market price is lower than those from 2017 to 2021. I...
Plantation companies – you need more than an idiot to run it
Warren Buffet said that he “…tries to invest in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”
It can be a challenge to identify such a wonderful business. One way is to hunt in wonderful sectors. These are industries that are relatively straightforward or have lower barriers to entry.
One way to identify such a sector is to look at the inter quartile range of the return trend. A sector...
It can be a challenge to identify such a wonderful business. One way is to hunt in wonderful sectors. These are industries that are relatively straightforward or have lower barriers to entry.
One way to identify such a sector is to look at the inter quartile range of the return trend. A sector...
BPlant – I am accepting the GO as it is at a fantastic price.
I recently received the Offer Notification for my BPlant shares.
I bought the shares years ago and started selling in middle of the year when the share price started to go up.
At that juncture, I did not have any idea that it was going to be taken over by KLK. Anyway, by the time KLK announced the takeover at RM 1.55 per share, I already had sold off more than 90% of them. Yes, I left lots of money on the table.
Then came the termin...
I bought the shares years ago and started selling in middle of the year when the share price started to go up.
At that juncture, I did not have any idea that it was going to be taken over by KLK. Anyway, by the time KLK announced the takeover at RM 1.55 per share, I already had sold off more than 90% of them. Yes, I left lots of money on the table.
Then came the termin...
Inch Kenneth – you are better off hunting elsewhere
Inch Kenneth is listed under the Bursa plantation sector. But the company is transitioning from a planation company to a property company. The company had not delivered any positive return over the past decade.
Well the property sector is a cyclical one and is not exactly booming currently. At the same time, it will take time to build up the property business. So I expect a few more tough years. If you are a fundamental investor, there are bett...
Well the property sector is a cyclical one and is not exactly booming currently. At the same time, it will take time to build up the property business. So I expect a few more tough years. If you are a fundamental investor, there are bett...
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Hap Seng Plantation – worth a deeper look
From a ROE perspective, the return of Hap Seng is in between that of KLK and BPant. It is better than BPlant but not as good as KLK. These are my 2 reference Bursa Plantation companies where I have detailed fundamental analysis.
The comparative ROE trend and share price trend shows a good link. Prices are currently low relative to the ROE. If you are hunting for stocks with price-fundamental discrepancy to invest in, this is one company worth a deeper loo...
The comparative ROE trend and share price trend shows a good link. Prices are currently low relative to the ROE. If you are hunting for stocks with price-fundamental discrepancy to invest in, this is one company worth a deeper loo...
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Harn Len – share price running ahead of the ROE
Harn Len is a Bursa Plantation company.
From a fundamental perspective, Harn Len ROE is more volatile that that of my 2 Bursa plantation reference companies – Bplant and KLK. Worst still over the past 7 years, there was only 1 year that Harn Len did better than either of them.
From a share price perspective, I think the market price has run ahead of its ROE. Unless you are a speculator, you should be worried about this pattern.
From a fundamental perspective, Harn Len ROE is more volatile that that of my 2 Bursa plantation reference companies – Bplant and KLK. Worst still over the past 7 years, there was only 1 year that Harn Len did better than either of them.
From a share price perspective, I think the market price has run ahead of its ROE. Unless you are a speculator, you should be worried about this pattern.
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Why I still read other analysts reports
I do not consider myself a newbie. Yet I spend considerable time looking at investment reports written by others. I group why I do so under the following.
Sanity check. All analyses are based on assumptions about the future. I look at how others have analysed the companies to see whether I have missed things. I like to compare investment thesis as a check against bias. You would be surprised how often I have come across investment thesis that is completely ...
Sanity check. All analyses are based on assumptions about the future. I look at how others have analysed the companies to see whether I have missed things. I like to compare investment thesis as a check against bias. You would be surprised how often I have come across investment thesis that is completely ...
Petronas Dagangan vs Petron Malaysia
There are 2 Bursa companies in the service station sector – Petronas Dagangan and Petron Malaysia. The former is about double the size of the latter in terms of revenue. You may think that this may give Petronas Dagangan some advantage
But you can see from the chart below that Petron Malaysia is no pushover and is able to compete.
So which would you chose to invest from a fundamental perspective?
But you can see from the chart below that Petron Malaysia is no pushover and is able to compete.
So which would you chose to invest from a fundamental perspective?
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Gopeng - not so good
Gopeng is a Bursa Plantation company.
From a fundamental perspective, the company ROE over the past decade is worse than my reference Bursa plantation company. I use BPlant and KLK as the benchmark. Secondly its price trend over the past few years reflected its poor returns. There are better Bursa plantation companies to look at.
From a fundamental perspective, the company ROE over the past decade is worse than my reference Bursa plantation company. I use BPlant and KLK as the benchmark. Secondly its price trend over the past few years reflected its poor returns. There are better Bursa plantation companies to look at.
Learning from investment case studies
Investment case studies can benefit both newbies and experts.
For the experts, I hope they provide alternative perspectives. I have used them as sanity checks
For the newbies, I hope that you use them in an active manner. Treat the case studies as complementary sources of learning. You would still need to gain the theoretical knowledge through the traditional sources. I have provided learning steps and what to look for when learning from case studies.
For the experts, I hope they provide alternative perspectives. I have used them as sanity checks
For the newbies, I hope that you use them in an active manner. Treat the case studies as complementary sources of learning. You would still need to gain the theoretical knowledge through the traditional sources. I have provided learning steps and what to look for when learning from case studies.
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