tag:blogger.com,1999:blog-29462482.post4865489614986345883..comments2023-10-17T15:46:53.662+08:00Comments on nexttrade: Magni- an attractive stockAlex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-29462482.post-55909514093921820152012-12-19T15:35:07.322+08:002012-12-19T15:35:07.322+08:00Thank you for your kind explanation.Thank you for your kind explanation.Newbiehttps://www.blogger.com/profile/08704918014240136108noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-65681877116017686492012-12-19T12:27:07.793+08:002012-12-19T12:27:07.793+08:00Hi Newbie
Deciding on fair value of a stock is a...Hi Newbie <br /><br />Deciding on fair value of a stock is a tricky business. To me, I will start with a PE range of 10-20 times. For a well-managed company with good growth track record and operating in a stable industry, I may go up to 20 times. Any company that is not so well-managed or operating in a not-so stable industry or little growth track record, I may use a lower PE.<br /><br />Then, there are other factors to consider, such as the size of the company, etc. <br /><br />All in all, there is a fair bit of subjectivity involved.<br /><br />The alternative is to compute the PE and you ask yourself, would the market pay a higher PE for this stock. If you feel that it deserves a higher PE, then the stock is a BUY in your book.Alex Luhttps://www.blogger.com/profile/08920196030603399063noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-64003535464241436862012-12-19T12:17:45.477+08:002012-12-19T12:17:45.477+08:00Hi For A Better Malaysia
Thank you for sharing. ...Hi For A Better Malaysia <br /><br />Thank you for sharing. It is good that you have done your own research into the stock. <br /><br />Your concerns are valid and they may explain why the stock had only risen timidly. A tightly-held stock with low volume is always a concern for investors, especially big investors who can't exit without a sharp drop in price. A high directors' remuneration is also a concern as this means there is less to be shared with the shareholders.<br /><br />This has lessen my enthusiasm for the stock but it does not entirely negate the call.<br /><br />Please continue to share your thoughts on nexttrade.Alex Luhttps://www.blogger.com/profile/08920196030603399063noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-11362426591614684272012-12-18T22:54:29.233+08:002012-12-18T22:54:29.233+08:00Hi Alex,
How did you derive its fair value?
Regard...Hi Alex,<br />How did you derive its fair value?<br />Regards.Newbiehttps://www.blogger.com/profile/08704918014240136108noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-68091681344432806532012-12-18T17:13:50.761+08:002012-12-18T17:13:50.761+08:00Hi Alex.
I have been eyeing Magni for some time n...Hi Alex.<br /><br />I have been eyeing Magni for some time now but have not bought due to some concerns, as stated below (data are slightly outdated). Would appreciate your views.<br /><br />From my newb and most likely flawed point of views, the concerns are :-<br /><br />(a) extremely low liquidity;<br /><br />(b) very tightly held shares (top shareholders accounting for more than 70-80%); and<br /><br />(c) it is not mentioned in its annual reports (at least the 2011 and 2012 ones) that Tan Kok Ping and Tan Poay Seng (2 of the major shareholders and directors) are father-and-son. I only discovered the relationship after doing some 'digging'. I would have thought such a relationship should be clearly stated from the outset. There are a few other Tans on the board and shareholder lists but I didnt bother to 'dig' further to see whether they are related.<br /><br />Another concern I have is that the Directors' remuneration seems too high.<br /><br />Profits (group) for FY 2010, 2011 & 2012 were RM16,495m, RM17.258m & RM30.638m respectively. The Directors' remuneration for those years were RM4.83m, RM5.787m & RM8.641m respectively.<br /><br />Just for comparison (probably not entirely fair but just for some perspective) :-<br /><br />- PChem for year 2011 the Directors' remuneration (including CEO's pay) was only RM1.788m (profits of RM2b++)<br /><br />- WTK for 2010 and 2011 the Directors' remuneration was RM3.391m and RM3.239m respectively (profits of RM68.639m and RM31.046m respectively).For A Better Malaysiahttps://www.blogger.com/profile/14764746085830680689noreply@blogger.com