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.

Showing posts with label digi. Show all posts

Saturday, 27 October 2012

DiGi Q3 net profit rises 7.84%

Wednesday October 24, 2012

PETALING JAYA: DiGi.com Bhd's third-quarter net profit for the period ended Sept 30 rose 7.84% to RM315.37mil on the back of revenues increasing as well to RM1.58bil from RM1.52bil.

The third largest mobile operator by subscribers in the country said revenue growth in the third quarter was moderate because of the impact of its ongoing network modernisation.

“We expect better revenue momentum in the fourth quarter from network improvement and seasonality,” DiGi said.

DiGi also declared a third interim tax-exempt dividend of 4 sen per share and a one-off special tax-exempt dividend of 8 sen for the financial year ending Dec 31, 2012.

Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) margins for its third quarter stood at 45.2% from 47.6% in the second quarter.

“The quarter-on-quarter decline was on account of the lost revenue opportunities' explained earlier and IDD margin pressure.

“Nevertheless, overall EBITDA margins for 2012 should be on par with the 2011 EBITDA margin as guided,” DiGi stated.

Its chief executive officer Henrik Clausen said in a press release that the company had committed to invest between RM700mil to RM750mil this year to modernise its network to cater for the increased demand from data users and is at the halfway point of rolling out this network.

“Our ambition is to provide access to high-speed Internet and next-generation services for all our customers, and in the first nine months of 2012 we have pushed harder than ever to make data accessible and affordable to everyone on a mobile device, and meet our customers' demand for high quality mobile Internet experience,” Clausen said.

Friday, 12 October 2012

DIGI.com Berhad (23.7.2012)

Date announced 23/07/2012
Quarter 30/06/2012
Qtr 2
FYE 31/12/2012
STOCK DIGI
C0DE 6947

Price $ 5.46
Curr. ttm-PE 31.89
Curr. DY 3.21%

Dividends		% chg
Curr. FY0	17.50	5.4%
Prev FY1	16.60	-16.6%
Prev FY2	19.90
Curr. DY	3.21%


Risk vs Returns
Upside	-0.13	-15%
Downside	1.00	115%

Returns
One Yr Apprec Pot.		-1%
Avg Yield		5%
Avg Tot. Ann Return		4%
(for next 5 years)

INPUT VARIABLES
Today's Share Pr $		5.46
EPS GR %		9%
Avg H. PE		20.0
Avg. L. PE		18.0
Rec. Severe Low Pr		3.02

Current PE		31.89
Signature PE		19.00
RV		168%
Rational Price		3.25


Dividends
Present Dividend		17.50
Avg % DPO		108%

Present Div Yield		3.21%
Present High Yield		5.79%

EPS G. RATE		9%
Present Market Pr.		5.46

Stock Performance Chart for DIGI.com Berhad

Thursday, 30 August 2012

Digi - Return on Retained Earnings

Digi

Year		DPS		EPS		Retained EPS
2002		0		1.2		1.2
2003		0		1.7		1.7
2004		0		3.8		3.8
2005		0		5.6		5.6
2006		3.9		10.7		6.8
2007		16.5		14.2		-2.3
2008		19.3		14.7		-4.6
2009		17.7		12.9		-4.8
2010		17.4		15.2		-2.2
2011		15.3		16.1	P	0.8
2012

Total		90.1		96.1		6


From	2002	to	2011
EPS increase (sen)				14.9
DPO				94%
Return on retained earnings				248%

(Figures are in sens)

Friday, 22 June 2012

Investor's Checklist: Telecom

Shifting regulations and new technologies have made the telecom industry far more competitive. Though some areas are more stable than others, look for a wide margin of safety to any estimate of value before investing.

Telecom is a capital-intensive business. Having the resources to maintain and improve the network is critical to success.

Telecom is high fixed-cost business. Keeping an eye on margins is very important.

Watching debt is also important. Firms can easily overextend themselves as they build networks.

The price of wireless airtime is plummeting. Carriers continue to compete primarily on price.

Ref: The Five Rules for Successful Stock Investing by Pat Dorsey

Read also:
Investor's Checklist: A Guided Tour of the Market...

Friday, 23 December 2011

MIDCAP-DiGi's earnings quality makes it a stand-out in Malaysia

Wed Dec 21, 2011 4:28am EST

Malaysia's third-largest mobile operator DiGi.com has the best earnings quality in the country, indicating strong profits and a faster growth than its peers in 2012.

The company scores 99 on StarMine's Earnings Quality (EQ) model -- the highest among 141 companies in Malaysia with a market value of more than $50 million and covered by three or more analysts.

DiGi's free cash flow of 548 million ringgit ($172.41 million) for the July-September quarter is at its highest level in the last four years, and exceeds its net income by a wide margin.

StarMine's research has found that earnings backed by strong cash flows tend to be more sustainable than non-cash earnings.

Digi's EQ handily tops bigger rivals Maxis and Axiata, which have EQ scores of 85 and 70, respectively.

In the past 30 days, analysts have raised their EPS estimates on DiGi by an average of 3.6 percent for 2012.

The stock has risen 46.75 percent this year, making it the best performer in the broader Malaysian market.

Starmine dataset comparing Malaysia's top four telcos:link.reuters.com/naw65s

CONTEXT:

For the fourth quarter of 2011, DiGi.Com backed its target of achieving a high single-digit revenue growth. The company has reported Q-o-Q revenue growth for nine quarters in a row.

A high score on the StarMine Earnings Quality model signals strong earnings sustainability over the next 12 months based on a company's past operating performance. ($1 = 3.1784 Malaysian ringgit) (Reporting by Patturaja Murugaboopathy; Editing by Saumyadeb Chakrabarty)

http://www.reuters.com/article/2011/12/21/midcap-digi-idUSL3E7NL1GJ20111221?type=companyNews

Monday, 28 November 2011

DIGI.COM Berhad

Company Name	:	DIGI.COM BERHAD
Stock Name	:	DIGI
Date Announced	:	24/10/2011

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:


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	1,519,970	1,351,341	4,418,531	3,976,795
2	Profit/(loss) before tax	398,506	390,444	1,170,942	1,146,939
3	Profit/(loss) for the period	292,445	289,314	860,159	845,978
4	Profit/(loss) attributable to ordinary equity holders of the parent	292,445	289,314	860,159	845,978
5	Basic earnings/(loss) per share (Subunit)	37.60	37.20	110.60	108.80
6	Proposed/Declared dividend per share (Subunit)	37.00	50.00	110.00	120.00

		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 ($$)	1.6800		1.7300

Remarks :

The Board of director has declared a third interim tax exempt (single-tier) dividend of 37 sen per ordinary share of 10 sen each for the financial year ending 31 December 2011.

A copy of Media Release in connection with the above is attached herewith.

9 Months results ending 30.9.2011

Income Statement

Revenue 4,418.531m
PBT 1,170.942
PAT 860.159

EPS
Basic 110.6 sen
Diluted N/A

Depreciation and amortisation (830.309m)
Finance costs (55.719m)
Interest income 19.616m
Taxation (310.783m)

Balance Sheet

ASSETS
NCA 3,270.631m
CA 1,450.716m
TOTAL ASSETS 4,721.347m

EQUITY AND LIABILITIES
NCL 815.755m
CL 2,600.711m
Total Liabilities 3,416.466m
Total equity 1,304.881m
TOTAL EQUITY AND LIABILITIES 4,721.347m

Net assets per share (RM) 1.68

Inventories 39.010m
Trade and other receivables 424.560m
Trade and other payables 1,714.971m

Cash and cash equivalents 987.146m
LT Loans and borrowings 556.875m
ST Loans and borrowings 169.804m

Cash flows statement

PBT 1,170.942m
Operating profit before working capital changes 2,229.738m
Cash generated from operations after working capital changes 2,144.653m

Net cash generated by operating activities 1,671.147m
Net cash used in investing activities (276.398m)
Net cash used in financing activities (1,258.187m)

Dividend paid
30.9.2011 (901.900m)
30.9.2010 (964.100m)

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
24-Oct-11	31-Dec-11	3	30-Sep-11	1,519,970	292,445	37.60	-
20-Jul-11	31-Dec-11	2	30-Jun-11	1,467,998	236,318	30.40	-
29-Apr-11	31-Dec-11	1	31-Mar-11	1,430,563	331,396	42.60	-
28-Jan-11	31-Dec-10	4	31-Dec-10	1,429,662	332,026	42.70	-

ttm-EPS 15.33 sen (after capital changes of 10 for 1 split).

Share Price Performance

	High		Low
Prices 1 Month	35.400	(16-Nov-11)	3.530	(21-Nov-11)
Prices 3 Months	35.400	(16-Nov-11)	3.530	(21-Nov-11)
Prices 12 Months	35.400	(16-Nov-11)	3.530	(21-Nov-11)
Volume 12 Months	134,798	(21-Nov-11)	200	(27-Dec-10)

23.11.2011

Price RM 3.720

PE 24.27x

DY 4.11%

Market cap 28,923.0m

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?