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Recently there has been a few postings on PCCS in i3investor. Yes, this company have turned around and have been posting good profits in the past few quarters.
Here, I want to highlight something that really caught my interest in this stock.

It is the FREE CASH FLOW generation!!
Cash Flow Statement (RM'000)
2014
2015
2016
2017
2018
9M 2019
Net Cash Flow from Operations
20,550
2,429
-2,485
-2,644
22,067
36,190
Purchase Of PPE
-4,206
-9,998
-7,458
-3,973
-4,353
-5,190
Disposal Of PPE
407
626
964
297
976
1,045
Free Cash Flow
16,751
-6,943
-8,979
-6,320
18,690
32,045
In 9 months FY2019 alone, it has generated 32m of cold hard cash for the company.
Now let's look at the Enterprise Value (EV) of the company.
Below is the formula for calculating EV:
EV = Market Cap + Market Cap of Warrants + Market Value of Minority Interest + Debt - Cash
Market Cap (RM '000) 80,865
Market Cap of Warrants (RM '000) 16,203
Market Value of Minority Interest (RM '000) 1,112
Cash (RM '000) 70,367
Debt (RM '000) 45,847
From the table above, we are able to calculate the EV to be RM73.661m. This means that in theory, all you need is RM73.661m to acquire the whole company.
Would it be a very good investment if you only need to pay RM73m for the whole business while the business has the ability to generate RM32m of cash in just nine months alone.
This means that you will be able to get back all your investment within two years and own the company for no cost at all.

Where else can you find this kind of investment???
You tell me.

https://klse.i3investor.com/blogs/Ong8888/206807.jsp
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