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.

Monday 28 November 2011

Guan Chong Berhad

Submitting Merchant Bank	:	N/A
Company Name	:	GUAN CHONG BERHAD
Stock Name	:	GUANCHG
Date Announced	:	09/11/2011

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:

GCB-3rdQ2011 Interim Financial Statements.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	365,721	296,563	990,362	836,296
2	Profit/(loss) before tax	33,823	27,002	107,850	79,359
3	Profit/(loss) for the period	26,238	17,788	91,747	57,126
4	Profit/(loss) attributable to ordinary equity holders of the parent	25,939	17,867	90,473	57,108
5	Basic earnings/(loss) per share (Subunit)	8.16	5.59	28.44	17.86
6	Proposed/Declared dividend per share (Subunit)	4.00	1.50	10.00	4.63

		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 ($$)	0.7840		0.7482

9 Months ending 30.9.2011

Income Statement

Revenue 990.362m

Profit from operations 111.799m

PBT 107.850m

PAT 91.747m

EPS

Basic 28.44 sen

Diluted 27.31 sen

Finance costs (3.949m)

Tax expense (16.103m)

Balance Sheet

ASSETS

NCA 222.966m

CA 627.365m

TOTAL ASSETS 850.331m

EQUITY AND LIABILITIES

Total equity 256.807m

NCL 18.579m

CL 574.945m

Total liabilities 593.524m

TOTAL EQUITY AND LIABILITIES 850.331M

Net assets per share 78.40 sen.

Inventories 472.518m

Trade and other receivables 133.584m

Trade and other payables 176.405m

Deposits, bank and cash balances 21.263m

LT Loans and Borrowings 8.899m

ST Loans and Borrowings 375.205m

Dividends

30.9.2011 (26.232m)

30.9.2010 (11.100m)

Cash flows statement

PBT 107.850m

Operating profit before working capital changes 146.839m

Net cash (used in) from operating activities (52.732m)

Net cash (used in) investing activities (77.041m)

Net cash from (used in) financing activities 129.999m

Weighted average number of ordinary shares 318.111m

Adjusted weighted average number of ordinary shares in issue and issuables 331.341m

Commentary of prospects

The Board of Directors is optimistic about the performance of GCB in the current financial year given that the new cocoa processing plant located in Batam, Indonesia has commenced its production in 1st quarter 2011. We believe GCB is well-positioned for growth as many initiatives to improve our competitiveness and profitability have been systematically carried out by the management team.

Barring any unforeseen circumstances, the Board of Directors of GCB expects that the Group’s financial performance for the financial year 2011 to be satisfactory

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
09-Nov-11	31-Dec-11	3	30-Sep-11	365,721	26,238	8.16	-
11-Aug-11	31-Dec-11	2	30-Jun-11	334,641	35,377	10.84	-
16-May-11	31-Dec-11	1	31-Mar-11	290,000	30,132	9.44	-
31-Jan-11	31-Dec-10	4	31-Dec-10	332,309	42,987	13.37#	-

#adjusted for capital changes.

ttm-EPS 41.81 sen

Price RM 2.49

Trailing PE 5.96x

Share Price Performance

	High		Low
Prices 1 Month	2.580	(11-Nov-11)	2.370	(02-Nov-11)
Prices 3 Months	2.680	(05-Sep-11)	2.000	(26-Sep-11)
Prices 12 Months	3.730	(07-Feb-11)	1.690	(02-Mar-11)
Volume 12 Months	22,045	(28-Dec-10)	60	(21-Oct-11)

Stock Performance Chart for Guan Chong Berhad

23.11.2011

Price RM 2.510

PE 6.47x

DY 3.05%

Market cap 802.6m

ROE 53%

Sunday 27 November 2011

QL Resources Bhd

Company Name	:	QL RESOURCES BERHAD
Stock Name	:	QL
Date Announced	:	21/11/2011

Financial Year End	:	31/03/2012
Quarter	:	2
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:

QL Qtrly announcement-2nd quarter 30 9 2011.xls

Remark:

c.c. Securities Commission


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	30/09/2011
		$$'000	$$'000	$$'000	$$'000
1	Revenue	495,184	438,725	949,751	823,239
2	Profit/(loss) before tax	47,770	42,813	83,969	75,992
3	Profit/(loss) for the period	38,521	36,405	68,375	64,611
4	Profit/(loss) attributable to ordinary equity holders of the parent	38,001	33,008	65,791	59,805
5	Basic earnings/(loss) per share (Subunit)	4.57	4.21	7.91	7.64
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 ($$)	0.9200		0.8800

6 Month ending 30-11-2011

Income Statement

Revenue 949.751m

PBT 83.969m

PAT 68.375m

EPS

Basic 7.91 sen

Depreciation and Amortisation (26.175m)

Finance costs (10.414m)

Balance Sheet

ASSETS

NCA 1,023.290m

CA 638.405m

TOTAL ASSETS 1,661.695m

EQUITY AND LIABILITIES

Total Equity 831.012m

NCL 334.870m

CL 495.813m

TOTAL LIABILITIES 830.683m

TOTAL EQUITY AND LIABILITIES 1,661.695m

Net Assets per share RM 0.92

Inventories 208.100m

Biological assets 40.214m

Trade receivables 154.570m

Payables 127.726m

Cash and cash equivalents 145.745m

LT borrowings 285.231

ST borrowings 361.833m

Dividends attributable to shareholder

30.9.2011 (35.357m)

30.9.2010 (29.503m)

Cash flow statement

Net cash from operating activities 66.816m

Net cash used in investing activities (144.405m)

Net cash from financing activities 101.277m

Number of ordinary shares in issue 832.000m

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
22-Aug-11	31-Mar-12	1	30-Jun-11	454,566	29,855	3.34	-
24-Feb-11	31-Mar-11	3	31-Dec-10	450,949	35,749	8.41	-
22-Nov-10	31-Mar-11	2	30-Sep-10	438,725	36,405	8.43	-
23-Aug-10	31-Mar-11	1	30-Jun-10	384,514	28,207	6.86	-

Share Price Performance

	High		Low
Prices 1 Month	2.990	(16-Nov-11)	2.840	(01-Nov-11)
Prices 3 Months	3.010	(02-Sep-11)	2.510	(26-Sep-11)
Prices 12 Months	6.260	(03-Jan-11)	2.510	(26-Sep-11)
Volume 12 Months	31,481	(08-Feb-11)	415	(01-Dec-10)

Stock Performance Chart for QL Resources Bhd

23.11.2011

Price RM 2.90

PE 17.82x

DY 1.47%

Market cap 2412.8m

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)

Monday 28 November 2011

Guan Chong Berhad

Market Watch

Sunday 27 November 2011

QL Resources Bhd

Market Watch

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