Petronas Dagangan versus Dutch Lady (A Comparative Study)

	5.3.2012		5.3.2012
	PetDag		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	23,251.78		810.65
Gross Profit	2,100.70		304.47
Operating Profit	1209.173		139.372
Financing costs	-1.015		-0.919
PBT	1208.911		141.553
PAT	875.927		108.082
EPS (basic) sen	87.5		168.88
EPS (diluted) sen
Balance Sheet
NCA	3957.02		74.048
CA	4527.712		324.465
Total Assets	8484.732		398.513
Total Equity	4830.594		259.154
NCL	198.629		4.051
CL	3455.509		135.308
Total Liabilities	3654.138		139.359
Total Eq + Liab	8484.732		398.513
Net assets per share	4.862		4.05
Cash & Eq	1026.209		193.143
LT Borrowings	16.232		0
ST Borrowings	0		0
Net Cash	1009.977		193.143
Inventories	832.6		93.448
Trade receivables	2668.903		36.713
Trade payables	3351.073		121.831
Quick Ratio	1.07		1.71
Current Ratio	1.31		2.40
Cash flow statement
PBT	1208.911		141.553
OPBCWC
Cash from Operations			188.290
Net CFO	1043.938		161.940
CFI	-307.041		-7.135
CFF	-623.159		-47.319
Capex	-289.167		-10.882
FCF	754.771		151.058
Dividends paid	-633.327		-46.400
DPS (sen)	63.75		72.5
No of ord shares (m)
basic	993.454		64
diluted
Financial Ratios
Gross Profit Margin	9.03%		37.56%
Net Profit Margin	3.77%		13.33%
Asset Turnover	2.74		2.03
Financial Leverage	1.76		1.54
ROA	10.32%		27.12%
ROC	22.93%		163.73%
ROE	18.13%		41.71%
Valuation	5.3.2012		5.3.2012
Price	18.24		29.5
Market cap (m)	18120.6		1888.00
P/E	20.69		17.47
P/BV	3.75		7.29
P/FCF	24.01		12.50
P/Div	28.61		40.69
DPO ratio	0.72		0.43
EY	4.83%		5.72%
FCF/P	4.17%		8.00%
DY	3.50%		2.46%

Padini versus Dutch Lady (A Comparative Study)

	6.3.2012		5.3.2012
	Padini		Dutch Lady
Income Statement
	30/6/2011		31/12/2011
	RM (m)		RM (m)
Revenue	568.48		810.65
Gross Profit	290.80		304.47
Operating Profit	106.63		139.372
Financing costs	-1.573		-0.919
PBT	105.057		141.553
PAT	75.694		108.082
EPS (basic) sen	11.51		168.88
Balance Sheet
NCA	94.585		74.048
CA	349.754		324.465
Total Assets	444.339		398.513
Total Equity	282.677		259.154
NCL	23.715		4.051
CL	137.947		135.308
Total Liabilities	161.662		139.359
Total Eq + Liab	444.339		398.513
Net assets per share	0.430		4.05
Cash & Eq	138.622		193.143
LT Borrowings	22.151		0
ST Borrowings	24.948		0
Net Cash	91.523		193.143
Inventories	170.955		93.448
Trade receivables	39.433		36.713
Trade payables	93.94		121.831
Quick Ratio	1.30		1.71
Current Ratio	2.54		2.40
Cash flow statement
PBT	105.057		141.553
OPBCWC	129.019
Cash from Operations	60.017		188.290
Net CFO	-2.104		161.940
CFI	-2.276		-7.135
CFF	8.773		-47.319
Capex	-24.728		-10.882
FCF	-26.832		151.058
Dividends paid	-26.316		-46.400
DPS (sen)	4.00		72.5
No of ord shares (m)	657.91		64
Financial Ratios
Gross Profit Margin	51.16%		37.56%
Net Profit Margin	13.32%		13.33%
Asset Turnover	1.28		2.03
Financial Leverage	1.57		1.54
ROA	17.04%		27.12%
ROC	39.60%		163.73%
ROE	26.78%		41.71%
Valuation	6.3.2012		5.3.2012
Price	1.53		29.5
Market cap (m)	1006.60		1888.00
P/E	13.30		17.47
P/BV	3.56		7.29
P/FCF	-37.51		12.50
P/Div	38.25		40.69
DPO ratio	0.35		0.43
EY	7.52%		5.72%
FCF/P	-2.67%		8.00%
DY	2.61%		2.46%

Guan Chong versus Dutch Lady (A Comparative Study)

	8.3.2012		5.3.2012
	Guan Chong		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	1,382.80		810.65
Gross Profit			304.47
Operating Profit	156.667		139.372
Financing costs	-6.598		-0.919
PBT	150.069		141.553
PAT	124.641		108.082
EPS (basic) sen	38.68		168.88
EPS (diluted) sen	37.27
Balance Sheet
NCA	250.665		74.048
CA	650.093		324.465
Total Assets	900.758		398.513
Total Equity	268.494		259.154
NCL	23.118		4.051
CL	609.146		135.308
Total Liabilities	632.264		139.359
Total Eq + Liab	900.758		398.513
Net assets per share	82.550		4.05
Cash & Eq	13.16		193.143
LT Borrowings	8.917		0
ST Borrowings	427.672		0
Net Cash	-423.429		193.143
Inventories	466.392		93.448
Trade receivables	170.337		36.713
Trade payables	161.907		121.831
Quick Ratio	0.30		1.71
Current Ratio	1.07		2.40
Cash flow statement
PBT	150.069		141.553
OPBCWC	182.743
Cash from Operations	-54.949		188.290
Net CFO	-72.380		161.940
CFI	-106.673		-7.135
CFF	180.136		-47.319
Capex	-107.002		-10.882
FCF	-179.382		151.058
Dividends paid	-38.932		-46.400
DPS (sen)	14.00		72.5
No of ord shares (m)
basic	317.957		64
diluted	330.026
Financial Ratios
Gross Profit Margin	-		37.56%
Net Profit Margin	9.01%		13.33%
Asset Turnover	1.54		2.03
Financial Leverage	3.35		1.54
ROA	13.84%		27.12%
ROC	18.01%		163.73%
ROE	46.42%		41.71%
Valuation	8.3.2012		5.3.2012
Price	2.6		29.5
Market cap (m)	858.07		1888.00
P/E	6.88		17.47
P/BV	3.20		7.29
P/FCF	-4.78		12.50
P/Div	22.04		40.69
DPO ratio	0.31		0.43
EY	14.53%		5.72%
FCF/P	-20.91%		8.00%
DY	4.54%		2.46%

Petronas Gas versus Dutch Lady (A Comparative Study)

	8.3.2012			5.3.2012
	Petronas Gas			Dutch Lady
Income Statement
	31/3/2011			31/12/2011
	RM (m)			RM (m)
Revenue	3524.95			810.65
Gross Profit	1787.17			304.47
Operating Profit	1921.65			139.372
Financing costs	-20.10			-0.919
PBT	1901.55			141.553
PAT	1440.38			108.082
EPS (basic) sen	72.8			168.88
Balance Sheet
NCA	6881.563			74.048
CA	3493.725			324.465
Total Assets	10375.29			398.513
Total Equity	8393.908			259.154
NCL	1542.517			4.051
CL	438.863			135.308
Total Liabilities	1981.38			139.359
Total Eq + Liab	10375.29			398.513
Net assets per share	4.242			4.05
Cash & Eq	2756.079			193.143
LT Borrowings	423.58			0
ST Borrowings	0			0
Net Cash	2332.499			193.143
Inventories	100.399			93.448
Trade receivables	374.513			36.713
Trade payables	326.728			121.831
Quick Ratio	7.73
Current Ratio	7.96			2.40
Cash flow statement
PBT	1901.554			141.553
OPBCWC
Cash from Operations	2573.192			188.290
Net CFO	2233.579			161.940
CFI	-654.443			-7.135
CFF	-1009.326			-47.319
Capex	-478.366			-10.882
FCF	1755.213			151.058
Dividends paid	-989.365			-46.400
DPS (sen)	50.00			72.5
No of ord shares (m)	1978.732			64
Financial Ratios
Gross Profit Margin	50.70%			37.56%
Net Profit Margin	40.86%			13.33%
Asset Turnover	0.34			2.03
Financial Leverage	1.24			1.54
ROA	13.88%			27.12%
ROC	23.76%			163.73%
ROE	17.16%			41.71%
Valuation	8.3.2012			5.3.2012
Price	16.8			29.5
Market cap (m)	33242.70			1888.00
P/E	23.08			17.47
P/BV	3.96			7.29
P/FCF	18.94			12.50
P/Div	33.60			40.69
DPO ratio	0.69			0.43
EY	4.33%			5.72%
FCF/P	5.28%			8.00%
DY	2.98%			2.46%

How to Apply the Secret - The Stick Man

Bob Proctor uses little stick men to explain how our mind works, how we think and create our personal attitude and overall view of life.





Always Express Gratitude.

How you can create wealth

David Schirmer shows how you can create wealth and retire in after just 15 years of work or much less even if you are on a very small wage, working a normal job.

Mastering The Stock Market with David Schirmer

Dutch Lady Corporate Video

Dutch Lady Corporate Video from Willieong on Vimeo.

Capitulation – Panic Selling

Capitulation is best summarized as panic selling. Capitulation is the final phase in an extreme downtrend when stock owners are willing to sell out at any price. Capitulation is the end of a downtrend as a result of this panic selling. During capitulation, there is almost a complete lack of buyers, which creates a vacuum of selling.

Example of capitulation:



This index saw capitulation as prices moved lower and accelerated in their descent. Capitulation ends with a volume climax as price moves virtually straight down.

Capitulation is the opposite of a parabolic uptrend, and often marks a lasting low on extremely heavy volume.


http://www.thestockbandit.com/capitulation/

Read also:

Parabolic – Parabolic Uptrend Stock

http://myinvestingnotes.blogspot.com/2012/03/parabolic-parabolic-uptrend-stock.html

Parabolic – Parabolic Uptrend Stock

A stock moves parabolic at the end of extreme uptrends, and is seen when panic buying sets in and prices are driven vertical. During a parabolic uptrend, there is almost a complete absence of sellers, which creates a vacuum of buying. This occurs only in momentum stocks as traders rush to just get into the stock regardless of price, in fear of being left behind. Parabolic moves can make the largest price moves in the shortest amount of time, but are dangerous places to buy stock when you overstay your welcome. When a stock moves parabolic, it often marks the end of a move with prices not returning to the ultimate highs again for a long time.

Example of a parabolic uptrend:

This stock went parabolic and gained in volume and price move at the end of the run. What began as an uptrend quickly became panic buying, driving the stock vertically higher.

Capitulation is the opposite of panic buying and parabolic uptrends.

http://www.thestockbandit.com/parabolic/

Read also:

Capitulation – Panic Selling

http://myinvestingnotes.blogspot.com/2012/03/capitulation-panic-selling.html

Managing Risk - Some Simple Rules

Managing Risk

Investors can manage their risk in picking individual stocks by following some simple rules:

•  Require that the company have at least five years of financial history. Younger firms haven’t developed enough of a track record for assessing management performance.
•  Study only companies that have proven they can make money. Someone who invests in a company that has never reported earnings is speculating, not investing.
•  Understand the possible risk and reward of owning a stock.
•  Diversify your portfolio. Even if you’ve done your homework on every holding using all the information you need to make an informed decision, you’ll still make mistakes. If you have a good-size basket of stocks, however, you’ll also have some stocks that perform much better than expected.
 
Besides investing in high-quality growth stocks and diversifying your portfolio, two other simple principles can help you build wealth over the long term. 

• First, reinvest all your dividends and earnings. 
• Second, invest regularly in both good markets and bad; this is often called dollar-cost averaging.

 
The type of analysis outlined provides a lot of the information fundamental investors need to determine whether a stock is a suitable investment. But not everything. Reading annual reports, listening to conference calls and viewing company presentations will help you form a fuller picture of the company.
    
In today’s unpredictable, volatile market, fundamental analysis is even more important than usual. But for an investor using a simple, straightforward methodology that focuses on the long term, these are also times of great opportunity.

The Road to Building Wealth

The Four Principles

1 . Invest regularly.
You can begin by investing as little as $25, $50 or $100 a month. As your
resources grow, your monthly investment can grow. The important thing
is to invest on a set schedule over time.

2 . Reinvest earnings, dividends and profits.
If a stock pays dividends, reinvest them to buy more shares. If you sell
a stock, apply the proceeds to another investment.

3 . Invest in quality growth stocks and mutual funds.
With the right growth stocks and equity mutual funds, you can achieve
goals like doubling your money every five years with an acceptable
amount of risk.

4 . D i v e r s i f y.
A balanced portfolio includes companies of various sizes from different
industry segments and mutual funds from various categories. This kind of
diversification helps reduce risk and broaden investment opportunity



Also read:
Searching for Good Quality Growth Companies
http://www.investlah.com/forum/index.php/topic,23855.0.html

Stock Market Scams

As an investor, you must be aware of the stock market scams. The following are two of the most common stock scams.

1. The Pump and Dump
The pump and dump is one of the easiest and most common ways of taking money away from unsuspecting investors. Although it is illegal, the use of the pump and dump has actually increased because the Internet has made it possible to reach millions more people.

Here’s how the pump and dump works:
First, company insiders try to convince outsiders to buy a stock, usually the stock of a small over-the-counter company (Penny stocks). Investors are led to believe that this is a “once-in-a-lifetime” opportunity to make a small fortune. The fraudsters will pump up interest in the stock by sending messages through Internet chat rooms, or posting overly optimistic press releases.

Before the Internet, pump and dumpers used to call people on the telephone (often called Boiler Rooms). The idea is to artificially pump up the price of a stock by spreading false news. The stock price rises because of increased buying and speculation, not because of anything positive happening in the company.

As the stock goes higher, those with inside knowledge are prepared for the “dump.” As more people buy shares of the stock, the insiders sell all their shares for a huge profit. Eventually, the truth comes out, and the stock price falls as more people sell. Guess who is left holding the shares of the now nearly worthless stock? You guessed it – the unsuspecting investors who bought into the hype. They probably thought the price could go higher, so they never sold their shares.




The pump and dump is one of the oldest and most effective scams. Usually, pump and dumps are used on small stocks selling below $1.00 a share because it is easier for pump-and-dumpers to manipulate the stock price with smaller stocks.



2. Insider Trading
There are actually two types of insider trading: legal and illegal.

Legal insider trading is that done by company employees (insiders) who file proper paperwork with the SEC before buying and selling shares in their company. These documents are available for viewing on the SEC Web site.

On the other hand, illegal insider trading occurs when company employees buy and sell stocks based on information that is not known to the public. For example, it’s illegal for the managers of XYZ Company to buy additional shares of stock in the company if they know that a revolutionary new product is about to be released. It’s even illegal for you to buy shares of stock in that situation if company insiders (perhaps your neighbor) tell you about it.

Do you think insider trading is common?
It certainly is. It occurs a lot more often than many people think. Every once in a while the SEC catches a celebrity just to make a point that it’s watching. Nevertheless, it’s my estimate that thousands of insiders are using information gleaned from the companies they work for to make profitable transactions. It’s an open secret that those in the know are trading stocks on inside information.

Shortage of School Teachers

50 years of Chinese school problems fuels anger at rally

March 25, 2012

An angry crowd jeer at Datuk Wee Ka Siong at a rally in Kajang today. - Picture by Choo Choy May

KAJANG, March 25 — The angry reaction to Datuk Wee Ka Siong at a rally opposing the shortage of Chinese school teachers here is the result of 50 years of frustration, say protestors.

The deputy education minister was greeted with loud jeers calling for him and MCA to step down when he arrived, and someone in the crowd had allegedly tried to punch him as he was being chased out by the crowd when the rally ended. 

Dr Wong Fort Pin (picture) from Malacca said he made the two-hour drive to lend his voice to the anger over the government’s track record over the hot button issue of Chinese language education. 

“This is a 50-year-old problem,” the father of five told The Malaysian Insider. “This problem has been here all along. It feels engineered (by the government) and a calculated move.” 

He said that he was not politicising the issue but felt “fed-up” and frustrated. 

“You think I have no better things to do than to come here?” he said. “For 50 years the issue has been going on, but now the government cannot hide.” 

Chinese schools and issues that plague them are key to the hearts of many Chinese-educated Malaysians. 

The issue is also a thorny one for Umno, MCA’s senior partner in Barisan Nasional, as it has to be seen as championing the Malay language and national government schools. 

For Serdang resident Tan, the issue was that a new Chinese school had been promised for Serdang in 2008 but had yet to materialise. 

“Until now there is still no news of the location,” he said. 

Tan claimed that he had emailed Wee on the matter but had not received a reply to date. 

“I am so sad there was no reply,” he said but added that he was glad that Wee made the effort to attend the rally. 

Later at a press conference at a hotel away from the crowd, Wee said that he was “shocked” and “saddened” by the hostile reaction. 

Wee acknowledged that the shortage of teachers was a problem and said that the government was giving it immediate attention. 

“Of course we know this needs immediate attention, that’s why the cabinet formed a committee (to look into it)”, he said. 

“We will study each of their (Dong Zong’s) resolutions and demands and consider it. We have come up with strategies.” 

He urged patience as the solution needed to be a holistic one. 

“We need to identify the root of the problem. If we don’t know the root, how are we going to solve it? We cannot concentrate on one side and ignore the other side.”

http://www.themalaysianinsider.com/malaysia/article/demonstrators-protest-over-shortage-of-chinese-teachers-for-50-years/ 

The Art of War by Sun Tzu - Whole Book

Warren Buffett's approach to Growth. Growth on its own is not a valuable thing as a rule.

Benjamin Graham's approach.

Look first at Assets.
Then look at Earnings Power - making sure that they are protected by the assets.


Warren Buffett's approach.


Look at Assets and Earnings Power.
Only then, look to pay something for Growth.
Growth is only valuable if the return on investment in growth is greater than the cost of capital.
If not, growth can destroy value.
Growth on its own is not a valuable thing as a rule.
If you are going to buy growth, you better be sure of the franchise value.

Value Investing Process

1. Search
Cheap
Ugly
Obscene
Otherwise ignored

2. Valuation
Assets
Earnings Power
Franchise

3. Review
Key Issues
Collateral Evidence
Personal Biases

4. Risk Management
Margin of Safety
Some Diversification
Patience - Default Strategy


Important Points


- Market Irrationality creates Opportunity

- Know what you Know

• Inherent quality of information
• Circle of Competence

- Look for Margin of Safety

The Best of Value Investing

Value Investing Conference 2010 (videos)

Learning Value Investing

Simply Investing Course Outline
Module 1 - Introduction (14 minutes). Watch this module for free, here.

What Will You Learn In This Course?
My Story
Investing Myths
What is a Stock?
What is a Dividend?
What is the Stock Market?
What is Value Investing?
Module 2 – Rules of Simply Investing (65 minutes)

12 Rules of Simply Investing

Module 3 – Plan A: Do-it-Yourself, Applying the 12 Rules (27 minutes)

Plan A versus Plan B
Plan A (hands-on exercise)
Module 4 – Plan B: Do-it-Yourself With Help, Saving Time (20 minutes)

Plan B

Quality resources available to save you time and money
Module 5 – Buying, Selling, Portfolio, Risk (38 minutes)

When Should You Sell a Stock?
How Do You Buy Stocks?
5 Reasons Why Mutual Funds Fail
Building a Portfolio
Tracking a Portfolio
Managing Risk
Getting Started Right Away
Investing Myths
Investing Facts

The Fabulous Life of Billion Dollar Wall Street Ballers