^V^
I hv said it many times , FA is not just LOW PE , but without LOW PE that is not FA (金钱不是万能 !没有金钱是万万不能 )LOW PE 不是万能 !没有LOW PE的 FA 万万不能!!! I just came across an article written by Mr Koon Yew Yin thru Google search , wowww ! never thought that we r using d same method ! buy good prospect LOW PE stock !
Read d article as below >
My one and only criterion for buying shares
Koon Yew Yin, 20th July 2011
As you know, there are many investment books written about the methods used by Gurus, like Warren Buffet, Benjamin Graham, Peter Lynch and many others. After reading and mastering all the basic fundamentals on share selections, I thought I could make money from the stock market. It is not so easy. After learning from my own mistakes, now I have one and only one criterion for stock selection, that is to buy only shares that have profit growth prospect.
I will never buy any share if I am not sure that it will make more profit in the next few quarters and also better profit this year than last year. Of course you should only buy the shares with P/E ratio below the average P/E of the sector and when the increased profit is announced you the shares you have bought will look cheap.
Now you can be almost sure that you will make money if you buy planation shares. Of course, the best buy would be those with low P/E ratio which you can see in the Star or NSTP daily.
You may like to read about Coastal Contracts which I have been buying in the last several months and this stock forms a major portion of my investment portfolio.
I am not asking you to buy but if you decide to buy, you are buying it at your own risk.
The most important criterion for buying any share is its profit growth prospect. Never buy any share which cannot make increasing profit in the next few quarters. To make profit you must always remember not to buy when the share price has gone up above the P/E ratio of that particular sector, unless it has superior qualities.
The reasons for buying Coastal Contracts are as follows:
1. It has an excellent track record of making increasing profits in the last few years. Its revenue and EPS for FY 08, FY 09 and FY10 were 347million, 27 cents; 466m,46c and 672m,56cents.
2. For the fourth consecutive year, Coastal was awarded Forbes’ “Asia 200 Best Under a Billion” in 2007, 2008, 2009 and again in 2010. I do not know of any other Malaysian listed company that has this achievement.
3. It recently announced that it has received new purchase orders for 7 off shore vessels, 3 tug boats and 2 barges worth RM 268 million. The company has a total of RM 760 million purchase orders which will surely provide profits for the next few quarters. Unlike other construction contracts, all purchasers have to pay a proportionally large amount of cash deposits for their orders. That is why its account always show large amount of cash and very small borrowings. 6 of the 7 off shore vessels were ordered by Tidewater Group, the world largest and most experienced provider of marine support services. It is listed in the New York Stock Exchange.
4. The share closed on 30th March 2011 at RM 3.02 and its EPS for 2010 was 55.4 cents. It is now trading at P/E ratio of 5.5 which is exceptionally cheap for a company with such good track records.
by
Koon Yew Yin,
30th March 2011
***
Mr Koon has mentioned twice in his article "BUY LOW PE " stocks .
See ? what is so great about LOW PE ? without LOW PE , it is too expensive if one buy good prospect plantation stock with PE > 20 !
U can see he is buying stock with PE stood @ single digit ! hv u ever seen him buying stock with PE > 15 ?
No matter how good prospect should d stock be !? as long as she is traded @ PE > 15 ( 4 second liners _ n PE > 20 ( 4 bluechips ) , she can never classified as under value ! d most is only FV ! more worst if one buy @ PE > 20 ( 4 2nd liners ) n > PE 25 ( 4 bluechips ) !
Doubt about my method ? k... let take Mr Koon 's coastal as an example ^_-
@ 3.02 coastal was traded @ PE 5.5 with 2010 eps of 55cts .
k..let presume if one buy coastal @ PE 15 , what is PE 15 for coastal with eps of 55cts ?
It is 55 cts x 15 = RM8.25 ! see ? expensive ? no matter how good prospect coastal can be , if one buy it @ RM 8.25 , chances 4 her 2 make profit is SLIM !
So ..see d beauty of buying LOW PE stock ??? see how useful LOW PE can be 4 stock buying ?
Once again >> my said > FA is not just LOW PE !!! but without LOW PE that is not FA !!!
Still not agreed ? ^_- ha ha..like that god oso cant help u liaooo !
Btw, let take a look at d third attachment , who wanna 2 commit suicide ? if u wanna 2 die please 4low this bugger xxxxxx 2 learn tak ada akal method ! 2 months is too short 2 master ta ? ha ha even 20 years oso useless unless he wanna 2 commit suicide !
RM2,000 4 2 hours lesson ? ha ha 4 me , even 2cts oso considered EXPENSIVE !
Hence..who wanna 2 commit suicide ? anybody out there ? LOL.
btw..just 2 let u know this ta bugger has link my blog in his...sorry bro... even u think I am good ( wowww ! ta loser endorsed my FA method ? LOL ), but I will not hesitate 2 prove u wrong once I see ppl using tak ada akal method ! LOL.
