myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Sunday, 27 November 2011

Boustead Holdings Berhad

Company Name	:	BOUSTEAD HOLDINGS BERHAD
Stock Name	:	BSTEAD
Date Announced	:	21/11/2011

Financial Year End	:	31/12/2011
Quarter	:	3
Quarterly report for the financial period ended	:	30/09/2011
The figures	:	have not been audited

Converted attachment :

Please attach the full Quarterly Report here:

Boustead Q3-Y2011.pdf


Currency	:	Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION

30/09/2011

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/09/2011	30/09/2010	30/09/2011	30/09/2010
		$$'000	$$'000	$$'000	$$'000
1	Revenue	2,188,700	1,513,900	6,001,500	4,492,000
2	Profit/(loss) before tax	167,100	153,700	585,900	474,200
3	Profit/(loss) for the period	144,300	124,600	501,800	390,200
4	Profit/(loss) attributable to ordinary equity holders of the parent	120,900	91,900	418,300	328,600
5	Basic earnings/(loss) per share (Subunit)	12.86	9.83	44.49	35.34
6	Proposed/Declared dividend per share (Subunit)	22.00	12.00	30.00	27.00

		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	4.6300		4.5000

Remarks :

Dividend for current quarter of 22 sen comprises:-
i) Single tier dividend of 12 sen per share declared for 3rd quarter ended 30 September 2011 payable on 30 December 2011; and

ii) Dividend in specie as referred to Note B24(a)(ii) which was completed on 28 October 2011.

9M Cumulative Period ended 30 September 2011

Income Statement

Revenue 6,001.5m
Profit from operations 498.7m
PBT 585.9m
PAT 501.8m

Profit for the period attributable to:
Shareholders of the Company 418.3m

EPS
Basic 44.49 sen

Finance cost (139.5m)

Balance Sheet

ASSETS
NCA 8,241.40m
CA 3,253.2m
TOTAL ASSETS 11,494.6m

EQUITY AND LIABILITIES
Total equity 4,980.7m
NCL 1,223.2m
CL 5,290.7m
Total Liabilities 6,513.9m
TOTAL EQUITY AND LIABILITIES 6,513.9m

Net Asset per Share RM 4.63

Deposits, cash and bank balance 579.1m
LT Borrowings 1,050.60m
ST Borrowings 3,382.8m

Dividends Paid
30.9.2011 (282.0m)
30.9.2010 (224.9m)

Cash Flow Statement

Net cash generated from operating activities 188.0 m
Net cash used in investing activities (702.5m)
Net cash generated from financing activities 664.2m

Capital expenditure & construction of investment property (321.1m)
Acquisition of Subsidiaries, net of cash acquired (650.4m)

Prospects for the year

The global economic outlook remains fluid and will likely be impacted negatively by the Euro zone debt crisis
and the ensuing deterioration of the economic and financial condition of Europe, weakening of the US economy in addition to the risk of slower growth for China and other emerging economies. Against this backdrop, the Malaysian economy which had registered moderate growth on the back of strong domestic demand and supportive government policy measures may experience a slower pace of growth during the remainder of the year. On the overall, the Group expects to register a satisfactory set of results for the current financial year.

Plantation's earnings will very much be dependent on palm oil prices which are expected to stay at attractive
levels for the remainder of the year, thus enabling the Division to deliver very strong earnings for FY2011. The
negotiation for the contract to construct six naval vessels is progressing well and this will have a positive effect
on the earnings of the Heavy Industries Division. The Property Division can look forward to stable recurring
income from its portfolio of commercial and retail properties and the expansion of the hotel operations.

Contributions from new Subsidiary Pharmaniaga Berhad together with the improved performance from the
Group's pharmaceutical manufacturing operation should bolster well for the Pharmaceutical Division. The other Divisions are also expected to perform satisfactorily in FY2011.

B25. Group Borrowings and Debt Securities
Total group borrowings as at 30 September 2011 are as follows:-
30.9.2011 31.12.2010
RM million RM million
Non-current:
Term loans 906.2 586.5
Bank guaranteed medium term notes 602.7 414.5
1,508.9 1,001.0
Less: repayable in 1 year 458.3 313.6
1,050.6 687.4
Current:
- Bank overdrafts 30.6 26.2
- Bankers' acceptances 194.3 163.8
- Revolving credits 2,699.6 1,972.2
- Short term loans 458.3 313.6
3,382.8 2,475.8
Proceeds from the issue of the RM600 million of MTNs were fully utilised as at the end of July 2011. The
balance of the MTN programme comprising RM400 million of MTNs will be issued during FY2012.
Included above are short term loans comprising RM40.5 million (US Dollar: 12.70 million) and RM45.2 million (IDR 124.8 billion) which are denominated in foreign currencies. All other borrowings are denominated in Ringgit Malaysia

Weighted average number of ordinary shares in issue
940.2m

Headline KPIs
2011 (9 Months) Actual
ROE 9.7%
ROA 7.0%

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
21-Nov-11	31-Dec-11	3	30-Sep-11	2,188,700	144,300	12.86	-
18-Aug-11	31-Dec-11	2	30-Jun-11	2,225,300	223,000	19.70	-
27-May-11	31-Dec-11	1	31-Mar-11	1,587,500	134,500	11.93	-
25-Feb-11	31-Dec-10	4	31-Dec-10	1,689,800	234,700	22.22	-

ttm-EPS 66.71 sen
Price RM 5.38
Trailing PE 8.1 x

Share Price Performance

	High		Low
Prices 1 Month	5.500	(09-Nov-11)	5.270	(03-Nov-11)
Prices 3 Months	5.650	(02-Sep-11)	4.490	(26-Sep-11)
Prices 12 Months	6.500	(10-Jun-11)	4.490	(26-Sep-11)
Volume 12 Months	47,233	(09-Jun-11)	643	(08-Nov-11)

Stock Performance Chart for Boustead Holdings Berhad

23.11.2011

Price RM 5.370

PE 8.04x

DY 5.96%

Market Cap RM 5,048.7m

No comments:

My 18 points guide to Successfully compounding your money in Stocks

Be a good stock picker.
Think as a business owner.
Always look at value rather than the price. Do the homework.
Buy and hold is alright for selected stocks.
Compounding is your friend, get this to work its magic.
Mr. Market is there to be taken advantage of. Do not be the sucker instead. BFS;STS.
Always buy a lot when the price is low.
Never buy when the stock is overpriced.
It is alright to buy when the selected stock is at a fair price.
Phasing in or dollar cost averaging is safe for such stocks during a downtrend, unless the price is still obviously too high.
Do not time the market for such or any stocks.
By keeping to the above strategy, the returns will be delivered through the growth of the company's business.
So, when do you sell the stock? Almost never, as long as the fundamentals remain sound and the future prospects intact.
The downside risk is protected through only buying when the price is low or fairly priced.
Tactical dynamic asset allocation or rebalancing based on valuation can be employed but this sounds easier than is practical, except in extreme market situations.
Sell urgently when the company business fundamental has deteriorated irreversibly.
You may also wish to sell should the growth of the company has obviously slowed and you can reinvest into another company with greater growth potential of similar quality. However, unlike point 16, you can do so leisurely.
In conclusion, a critical key to successful investing is in your stock picking ability.

http://myinvestingnotes.blogspot.com/2012/07/my-18-points-guide-to-successfully.html

11 Lessons From Peter Lynch

Peter Lynch taught me:

1. Behind every stock is a company. Find out what it’s doing.
2. Never invest in any idea you can’t illustrate with a crayon.
3. Over the short term, there may be no correlation between the success of a company’s operations and the success of its stock. Over the long term, there’s a 100% correlation.
4. Buying stocks without studying the companies is the same as playing poker – and never looking at your cards.
5. Time is on your side when you own shares of superior companies.
6. Owning stock is like having children. Don’t get involved with more than you can handle.
7. When the insiders are buying, it’s a good sign.
8. Unless you’re a short seller, it never pays to be pessimistic.
9. A stock market decline is as predictable as a January blizzard in Colorado. If you’re prepared, it can’t hurt you.
10. Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
11. Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.

Lynch’s advice had a profound effect on my stock market approach. He taught me that investment success isn’t the result of developing the right macro-economic view or deciding when to jump in or out of the market. Success is about researching companies to identify those that are likely to report positive surprises.

Capital Expenditure

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

Capital Expenditures are expenses on:
- fixed assets such as equipment, property, or industrial buildings
- fixing problems with an asset
- preparing an asset to be used in business
- restoring property
- starting new businesses

A good company will have a ratio of Capital Expenditures to Net Income of less than 50%.

A great company with a Durable Competitive Advantage will have a ratio of less than 25%.

Less is better.

Benjamin Graham's 113 Wise Words

The true investor scarcely ever is forced to sell his shares, and at all times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons' mistakes of judgement."

Philip Fisher's Wise Words

"The refusal to sell at a loss, while completely natural and normal, is probably one of the most dangerous in which we can indulge ourselves in the entire investment process.

More money has probably been lost by investors holding a stock they really did not want until they could 'at least come out even' than from any other single reason. If to these actual losses are added the profits that might have been made through the proper reinvestment of these funds if such reinvestment had been made when the mistake was first realized, the cost of self-indulgence becomes truly tremendous."

(Common Stocks and Uncommon Profits)

The Ultimate Hold-versus-Sell Test

Here is the overriding primary test, followed by observations on why it is so critically important:

Knowing all that you now know and expect about the company and its stock (not what you originally believed or hoped at time of purchase), and assuming that you had available capital, and assuming that it would not cause a portfolio imbalance to do so, would you buy this stock today, at today's price?

No equivocation. Yes or no?

Answers such as maybe or probably are not acceptable since they are ways of dodging the issue. No investor probably buys a stock; they either place an order or do not.

Here is the implication of your answer to that critical test: if you did not answer with a clear affirmative, you should sell; only if you said a strong yes, are you justified to hold.

Some thoughts on Analysing Stocks (KISS)

Ideally a stock you plan to purchase should have all of the following charateristics:

• A rising trend of earnings dividends and book value per share.
• A balance sheet with less debt than other companies in its particular industry.
• A P/E ratio no higher than average.
• A dividend yield that suits your particular needs.
• A below-average dividend pay-out ratio.
• A history of earnings and dividends not pockmarked by erratic ups and downs.
• Companies whose ROE is 15 or better.
• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.

Margin of Safety Concept: Stocks should be bought like groceries, not like perfume

The high CAGR in the early years of the investing period, due to buying at a discount, tended to decline and approach that of the intrinsic EPS GR of the companies over a longer investment time-frame.

Chapter 20 - “Margin of Safety” as the Central Concept of Investment

A single quote by Graham on page 516 struck me:

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

Basically, Graham is saying that most stock investors lose money because they invest in companies that seem good at a particular point in time, but are lacking the fundamentals of a long-lasting stable company.

This seems obvious on the surface, but it’s actually a great argument for thinking more carefully about your individual stock investments. If most of your losses come from buying companies that seem healthy but really aren’t, isn’t that a profound argument for carefully studying any company you might invest in?

myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Sunday, 27 November 2011

Boustead Holdings Berhad

Market Watch

No comments:

All equity security investments present a risk of loss of capital

The Ultimate Hold-versus-Sell Test

Some thoughts on Analysing Stocks (KISS)

Benjamin Graham

Sell the losers, let the winners run.

Investment Style

Warren Buffett

Political and Economic News

Interesting Blogs