Showing posts with label how to use SPG?. Show all posts
Showing posts with label how to use SPG?. Show all posts

Wednesday 2 June 2010

A quick look at Kenmark (2.6.2010)






















A quick look at Kenmark (2.6.2010)
http://spreadsheets.google.com/pub?key=tyT8o3UdiCxgyUhc6ph3flg&output=html
















Securities Commission probes Kenmark


Could I have predicted what would happen to Kenmark from its accounts?
Definitely NO

However, it is most unlikely that Kenmark will be a stock I would have in my portfolio based on my investment criterias.  Therein, lies my protection against buying such a stock.

Interestingly, here are the comments in the latest SPG (Dynaquest) in its recently released latest edition of March 2010 on Kenmark:

Kenmark is engaged in the manufacturing of wooden furniture which are mainly exported to the West.  In FY 08, it expanded from the LCD TV trading and distribution into the assembly of LCD TV.  Its 9M 10 results exceeded our expectations with earnings soared by 129.6% yoy.  We saw significant improvement in the Wood-based manufacturing segment although Trading segment is not doing so well.  Looking forward, improving business environment and better margin are going to fuel Kenmark's profit growth.

It was obvious that those in Dynaquest did not and could not forsee what was coming in Kenmark then.  ;-(

Thursday 6 August 2009

What do you get in SPG and how to use it?

What do you get in SPG and how to use it?

The guide contains critical investment information for all stocks listed on the Main Board of the BMS.

SPG is designed for investors who believe in buying stocks based on their fundamentals. If an investor wants to buy a share based on fundamentals, what type of information would he need?
  • Essentially, he would need the most up to date information on the quality, performance and pricing (valuation) of the stock.
  • He needs information on the quality of the stock so that he will not overpay for stocks for poor quality.
  • He needs data on performance so that the stock he buys will perform well in the future and give him good return.
  • Lastly, he needs information on the pricing of the stocks so that he knows at what level to buy the share.

Since the typical fundamental investor is usually a long term investor, he would also need to have a good idea of the future condition and it is of course very difficult to look into the future.
  • If an investor is very knowledgeable and is prepared to do a lot of research work, it may be possible to determine the future condition and prospect of a company.
  • We are believers of the saying that: "The past is a good indication of the future". Hence the SPG provides you with 12 years of earnings and dividend records as well as three years of financial data and ratios.
  • A company with a good track record is likely to continue to do well in the future unless there is a complete change in management.
SPG contains two main types of information:
  • Descriptive and
  • Statistical.

Descriptive information comprises information on:

  • Ownership,
  • Activities,
  • Corporate Structure,
  • Past & Future Performance and
  • Capital of the company.

This section is mainly designed to give the readers an idea of the performance and quality of the company in terms of its strategy, earnings and assets management.

SPG briefly discusses qualitatively the immediate past, current and future earnings prospects of the company. SPG does not discuss the historical earnings trend apart from that of the previous year as this data is available in another part of the report.

The descriptive part of the report, seeks to provide you with some fo the answers to the "WHAT stock am I buying?" questions.


Stastistical information is made up of two parts:
(1) Critical stock market information, for 12 years or from the year of listing, comprising of the
  • Annual Price Range,
  • EPS,
  • DPS,
  • DY Range and
  • PER Range.

(2) Financial information comprising of Summary Statistics from
  • the Balance Sheet and
  • Profit & Loss Statement of the company as well as
  • a collection of Critical Financial Ratios.

This is probably the most improtant and unique part of this publication. The information provided is in the form of data for each year. The annual stock performance figures, be they price, EPS or DPS, may not be enough in themselves.

Serious investors may like to take a longer view by seeing how the figures may have changed over the years.
That is, what are the historical growth rates of the price, EPS and DPS of a stock from the past.

Furthermore, owing to the fact that the performance for a particular year may be very good or very bad, the DY and PER figures would be seriously distorted. It is sometimes more useful to look at the average figures rather then the individual year's figures.

The Statistical part of the report is used more for answering to the "WHICH stock to buy?" and the "WHEN to buy a stock?" questions.


Ref:
How to use the Stock Performance Guide (SPG)
Stock Performance Guide by Dynaquest Sdn. Bhd.