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.

Saturday, 26 November 2011

Sarawak Oil Palm

9M ended 30th Sept 2011
Sarawak Oil Palm

Balance Sheet
Assets
NCA 1,306.091m
CA 651.179m
Total Assets 1,957.270m

Equity and Liabilities
Total Equity 1,306.580m
NCL 462.435m
CL 188.254m
Total Liabilities 650.689m
Total Equity and Liabilities 1,957.270m

Net asset per share (RM) 2.69

Cash and bank balances 476.221m
LT Borrowings 341.398m
ST Borrowings 30.755m

Income Statement
Revenue 852.724m
Gross Profit 316.313m
PBT 297.728m
PAT 220.269m

Profit attributable to
Owners of the parent 199.626m

Finance costs (5.121m)
Tax paid (77,459m)

EPS to equity holders of parent (sen)
Basic 46.17
Diluted 45.42

Dividend on ordinary shares
At 1 January 2011 (13.004m)
At 1 January 2010 (9.659m)

Cash Flow Statement
PBT 298.145m
Op Profit before working cap changes 339.695m

Net cash from operating activities 228.706m
Net cash used in investing activities (155.118m)
Net cash generated from financing activities 33.939m

Capital Exp (Acquisition of PPE) (162.682m)
FCF 66.024m

Explanatory Notes To The Interim Report – 30 September 2011
B. BMSB Listing Requirements (Part A of Appendix 9B)

B1. Review of performance
The Group registered a total revenue of RM852.7 million for period ended 30 September 2011 compared with RM515.6 million reported in the corresponding period in year 2010. The increase of RM337.1 million in revenue was mainly attributed to the higher average Crude Palm Oil (CPO) and Palm Kernel (PK) prices realized and sales volume during the period. The sales volume for CPO and PK increased by 47,183 mt or 28% and 10,549 mt or 31% respectively compared to previous year corresponding period.

In line with the increase in total revenue, the Group registered a profit before tax for the period of RM297.7 million. This represents an increase of 95.1% or RM145.1 million compared to RM152.6 million achieved during the corresponding period in year 2010.

B2. Material changes in profit before taxation for the quarter as compared with the immediate
preceding quarter
For the quarter under review, the Group registered a lower profit before tax of RM103.8 million compared to RM112.6 million in the previous quarter due to softening of the CPO and PK prices realized, despite an increase of volume of CPO sold by 20,032 mt or 28%.

The average selling price of CPO and PK realized for the current quarter were RM3,166 and RM2,034 per mt respectively.

B3. Prospects for the current financial year
The performance of the Group is largely dependent on developments in the world edible oil market, bio-diesel market, fossil oil market, movement of Ringgit Malaysia, world economic situation and their corresponding effect on CPO price.

B9. Borrowing and debt securities
30 September 2011
RM’000
Current
Secured 20,791
Unsecured 9,964
Non-current
Secured 336,314
Unsecured 5,084
Total 372,153
The above borrowings are denominated in Ringgit Malaysia.

Basic earnings per share
The calculation of basic earnings per share for the quarter is based on the profit attributable to equity holders of the parent of RM75.1 million and on the weighted average number of ordinary shares of RM1 each in issue during the period of 433,777,699.

Diluted earnings per share
The diluted earning per share for the quarter is based on the profit attributable to equity holders of the parent of RM75.1 million and on the weighted average number of ordinary shares of RM1 each in issue during the period of 440,911,509.

Market price MR 4.66 (25.11.2011)
Market capitalisation 440.911509m x MR 4.66 = 2,054.65m

Company Name	:	SARAWAK OIL PALMS BERHAD
Stock Name	:	SOP
Date Announced	:	25/11/2011

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:

SOPB BMSB 3rd quarter_2011.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	326,055	213,000	852,724	515,568
2	Profit/(loss) before tax	103,780	73,159	297,728	152,625
3	Profit/(loss) for the period	82,266	54,633	220,269	112,058
4	Profit/(loss) attributable to ordinary equity holders of the parent	75,136	49,405	199,626	102,771
5	Basic earnings/(loss) per share (Subunit)	17.32	11.46	46.17	23.91
6	Proposed/Declared dividend per share (Subunit)	0.00	0.00	0.00	0.00

		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 ($$)	2.6900		2.2600

Remarks :

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
25-Nov-11	31-Dec-11	3	30-Sep-11	326,055	82,266	17.32	-
26-Aug-11	31-Dec-11	2	30-Jun-11	288,185	76,892	15.92	-
12-May-11	31-Dec-11	1	31-Mar-11	238,484	61,111	12.84	-
25-Feb-11	31-Dec-10	4	31-Dec-10	209,784	48,946	10.63	-

ttm-EPS 56.71 sen

Price $ 4.56

Trailing PE 8.04x

Share Price Performance

	High		Low
Prices 1 Month	4.700	(24-Nov-11)	4.000	(10-Nov-11)
Prices 3 Months	4.700	(24-Nov-11)	3.730	(26-Sep-11)
Prices 12 Months	4.700	(24-Nov-11)	3.200	(15-Mar-11)
Volume 12 Months	26,819	(18-Nov-11)	18	(14-Oct-11)

Stock Performance Chart for Sarawak Oil Palms Bhd

23-11-2011

Price RM 4.50
PE 8.72x
DY 0.89%
Market Cap RM 1,953.7m
ROE 21%

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)

Saturday, 26 November 2011

Sarawak Oil Palm

Market Watch

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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