There are 2 Schools of Thoughts in KLSE : LONG TERM VALUE INVESTING VERSUS SHORT TERM TRADING
1) Those who are Value Investors.
My Johor Sifu said in investment we buy great growing companies that will give value to all collectively.
And we happily invest together, profit together & grow rich together over the years steadily.
And he was correct!
2) On the other hand there are those who think that KLSE is a zero sum game. This kind of doctrine leads them to the belief that to win some must lose. And to win big some others must suffer huge losses. This kind of belief system is ruthless like a dog eat dog world. Everyone trying to outdo and outsmart each other. This led to the rise of Syndicates catching sorchai & trapping greater fools.
Calvin thinks KLSE is a place to find Companies to invest in. And there are many if only you will do your homework well
Before me is "The Monthly Digest" by Dr Neoh Soon Kean of Dynaquest (The Benjamin Graham of Malaysia who taught Value Investing)
This is the January 2009 Edition. In few short months it will be 10 years already
Let's take a look of what this Great Sifu recommended then
1) CENBOND at 40 sen (See what Dr Neoh said about Cenbond: Attractive valuations from the two commonly used fundamental yardsticks, P/E multiple of only 4x and a DY of 8% nett)
This was a chun chun call as Cenbond was later taken private
2) DAIBOCHI at 49.5 sen (A recovery stock. EPS bottomed out in 1H05 and continued to improve in the subsequent quarters. Currently, trading at a prospective P/E multiple of <5x a="" and="" dy="" high="" of="" very="">14% nett.
Another chun chun call by Dr Neoh. Dr Neoh has 1 million shares of Daibochi. And Daibochi up over 1,000% in less than 10 years.
Now who say Value Investing is not for Malaysia?
3) HIROTAKO at 54 sen (Relatively high DY of almost 5.5% nett & reasonable P/E multiple)
Another chun chun call taken private!
4) MUDA at 60 sen (Turned around in 1Q07. Currently, trading at a prospective P/E multiple of 3x and a DY of 5% nett and has a very high operating cash flow price)
Another chun chun call. However Muda dropped from 60 sen to 32 sen.
At 32 sen Calvin hantam kuat kaut. But eventually Muda crossed Rm2.00 & split. Then up again for almost 10 baggars if you bought at bottom of 32 sen (Note: Over the years Calvin also tendered & bought some Muda Company cars)
5) PIE at Rm3.70 (This high champion dividend stock. Both my Johor Sifu & Osk Iskandar Top Boss Mr. Law also own it for dividends)
6) SKPRES at 0.095 (Trading at a forward P/E of <4x a="" and="" dy="" of="">5% nett. These may be regarded as undemanding valuation)
THIS SUPER STOCK ROSE UP BY OVER 2,200% on Jan 5 2018 at Rm2.28
Calvin made money in this great stock!!!
7) TGUAN at 72 sen (A stretch firm producer with EPS growing at an average compounded rate of 5.2% per annum for the last 10 years. A beneficiary of the current bearish crude oil prices as its main raw material (resin) is a product of crude oil)
TGUAN PEAK AT RM4.79 ON FEB 2017 for a Rise of 665% in 8 years or 83% GAIN A YEAR!!!
How come people say Value Investing like Warren Buffet doesn't work in Malaysia
8) TITAN at 76.5 sen (THIS ONE CALVIN BOUGHT BUT AGAIN TAKEN PRIVATE)
9) KAF at 87.5 sen (This one was given MGO at Rm1.30 but rejected by shareholders. Later KAF was taken private for another 100% gain over Rm2.60)
Note: All who receive MGO letter from Tony at 66 sen for TA ENTERPRIZE should reject the offer.
TA & INSAS are both candidates for privatisation like KAF
And Dr Neoh chun chun buy call for KAF at 76.5 sen gained more than 400% inclusive of dividends
10) FIMA CORP at Rm1.88 (Low P/E multiple (<4x amp="" dy="" high="" relatively="">6% nett)
After share split/ bonus issue & dividends FIMACORP is Up 500%!
SO VALUE INVESTING IN MALAYSIA WORKS WONDERS FOR ALL WHO ARE PATIENCE
Posted by Calvin Tan Research
Note: The above stocks by Dr Neoh was extracted from The Month Digest of Dynaquet January 2009 Edition. Now this yearly subscription has ceased.