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

TDM Berhad

Company Name	:	TDM BERHAD
Stock Name	:	TDM
Date Announced	:	24/11/2011

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:

Remark:


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	151,506	103,649	367,812	264,434
2	Profit/(loss) before tax	71,032	36,397	152,130	80,866
3	Profit/(loss) for the period	52,203	28,826	114,150	61,619
4	Profit/(loss) attributable to ordinary equity holders of the parent	51,474	28,262	112,511	60,395
5	Basic earnings/(loss) per share (Subunit)	21.88	12.81	48.33	27.47
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 ($$)	3.5000		3.2200

9 Months ended 30th Sept 2011.

Income Statement

Revenue 367.812m

Gross Profit 206.174m

PBT 152.130m

PAT 114.150m

EPS (sen)

Basic 47.46

Fully diluted 46.50

Finance costs (0.300m)

Income tax expense (40.023m)

Balance Sheet

ASSET

NCA 742.799m

CA 302.982m

TOTAL ASSETS 1,045.781m

EQUITY AND LIABILITIES

TOTAL EQUITY 828.091m

CL 174.189m

NCL 43.501m

TOTAL LIABILITIES 217.690m

TOTAL EQUITY AND LIABILITIES 1,045.781m

Net assets per share RM 3.50

Inventories 22.152m

Trade and other receivables 54.565m

Trade and other payables 153.642m

Cash and bank balances 214.290m

ST Borrowings 1.316m

LT Borrowings 0.422m

Net assets per share RM 3.50

Dividend

30.9.2011 (38.268m)

30.9.2010 (26.431m)

Cash flow statement

PBT 154.174m

Operating profit before working capital changes 165.927m

Net cash from operating activities 141.320m

Net cash used in investing activities (74.511m)

Net cash used in financing activities (28.452m)

Capex

Purchase of PPE (32.651m)

Addition of plantation development expenditure (31.297m)

Basic

Weighted average number of ordinary shares in issue 232.775m

Diluted

Weighted average number of shares - diluted 237.556m

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
09-Aug-11	31-Dec-11	2	30-Jun-11	126,984	32,346	13.86	-
19-May-11	31-Dec-11	1	31-Mar-11	105,792	29,601	12.72	-
21-Feb-11	31-Dec-10	4	31-Dec-10	135,550	33,890	14.89	-
26-Nov-10	31-Dec-10	3	30-Sep-10	110,136	28,825	12.82	-

ttm-EPS 54.29 sen

Price RM 3.45

Trailing PE 6.35x

Share Price Performance

	High		Low
Prices 1 Month	3.540	(25-Nov-11)	2.900	(09-Nov-11)
Prices 3 Months	3.540	(25-Nov-11)	2.600	(04-Oct-11)
Prices 12 Months	3.540	(25-Nov-11)	2.400	(26-Nov-10)
Volume 12 Months	29,814	(16-Nov-11)	106	(13-Jul-11)

TDM Berhad Company Snapshot

Business Description:

TDM Berhad operates in the Vegetable oil mills sector. TDM Berhad is an investment holding company. The Company is engaged in the provision of management services and cultivation of oil palms. The Company operates ion four segments: Plantation division involved in a few activities, such as cultivation of oil palms, sales of fresh fruit bunches and management of plantation operation services; Food division involved in activities, such as integrated poultry farming, and processing of related products; Health division provide health consultancy and operates with specialist medical centers, and Others division, dormant companies. The Company manages 12 oil palm estates with a total planted area of 33,284 hectares in Malaysia, and another 2,000 hectares in Kalimantan, Indonesia. On August 30, 2010, the Company completed the liquidation processes of TMG (M) Sdn. Bhd., East Coast Transportation Sdn. Bhd., Chee Keng Stocks-Feeds Manufacturing Company Sdn. Bhd., TDM Interdagang (M) Sdn. Bhd. and Pemco Sdn. Bhd.

23.11.2011

Price RM 3.28

PE 6.14x

DY 2.97%

Market cap 1,953.7m

ROE 15.5%

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

TDM Berhad

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