OMG what happened to luster!!!!????

Diez

Why do you subtract net cash from earning in computing PE?

BTW, what is the formula for net cash? Cash & Cash Equivalents - Total Liabilities?

Gark invented his own coke cola formula

sharks disappeared

If there is a stock with PE 3, in a bullish stock market (until now equities is still performing very well, despite recent volatility) then must extra becareful.

In a bullish stock market, generally,

Good thing won't come cheap.
Cheap thing may not necessary must be good.

And another phrase is too good to be true.

This post has been edited by cherroy: Jun 14 2013, 11:16 AM

Especially cylinical stock like steel company. We should buy when PE is high and sell When PE is low. Because market may perceive some bad times ahead thats why PE drop until so low

But quite many small cap property stocks with low PE boom this year after doomed for so long.........

Anything wrong with these companies or the investors themselves

This post has been edited by SKY 1809: Jun 14 2013, 11:33 AM

I don't get it

Each industry has a way to analyze, u can't use consumer stock PE and judge it on steel company PE.

Efficient Market Theory?

Big crabs eat smaller crabs theory

Why so many low PE small cap privatized quietly . Certainly no water fish around.

This theory says majority of reits investors are not aware of reits enjoy "tax free status " in Malaysia

If I am not wrong here...

Cyclical stock like steel, they have very short profitability one.
So the best time to buy, you buy when they are losing money, or have hardly any earnings.
When there is hardly any earnings, the PE will be high.

When the earnings turn around, the earnings for steel stocks comes in big lump sump.
So the PE will suddenly turn from high PE to low PE.
Anc because the good times for steel stocks tends to be short lived, you then should probably sell when the PE is low.

You probably can use CSCSteel as a reference.

Because PE is based on historical figures. Shares investment is looking at prospect. Assume financial community are rational, they have taken account of the future prospect of the industry. Thats mean the prospect will not as robust as currently is. Political factor such as dumping, rising standard of steel import quality, economic risk (forex fluctuation) and embargo will affect the robustness of steel industry. There maybe decline in performance in the future where climb up the PE or have no PE (company making losses) at all.

Cyclinical stocks are not easy to predict. It is only suitable for investor who is in the industry n know the market well. Learn from peter lynch.

When i buy foods industry, i know people will eat no matter what the economuc conditions. But we cany do this on cyclinical stock. Thats why cyclinical stock is not a sound long term investment

This post has been edited by bursalchemy: Jun 14 2013, 11:49 AM

The word long term is quite misleading :-

Because recession and boom cycles mutated, maybe from 10 years to 6 years esp for recession period to resurface.

Does not mean u hold a stock for long term, it can withstand a recession cycle.

Even strong banks could be impacted greatly because of NPLs.

So many stocks are more or less cyclical in one way or another.

See Europe as an example, where are the recession proof companies ?

This post has been edited by SKY 1809: Jun 14 2013, 11:55 AM

How to know if that company falls under what PN?

oldtown, astro, aeon, walmart, coke are some of the long term investment i am looking at. They all have wide economic moat can defense against competition and market. I will buy them when their price reached my intrinsic value. Think of 100 years, they will still survivr

Can try MAS or MISC , maybe can survive for the next 200 years

May outlast Astro or Oldtown also. U mean no competitions in these days .

This post has been edited by SKY 1809: Jun 14 2013, 12:09 PM

The local thrift (bank and insurance) are also on my radar, will hunt for them during recession or economic crisis. Buy tgem cheap and hold them for long term

Now i understood

Thank you for the tipsy explanation

Thanks for the explanation

A century ago, there was a quoted called if you want to be a billionaire, buy airlines. Nowadays, airline industry are hard to manage, power of trade union, highly geared balance sheet, government intervention, stiff competition from no frills airlines are all the threats.

Airasia is blessed because has a bunch of capable and competence management team. They really knows what they doing when hedging on fuel price movement.
Airlines is an industry required smart management to operate, but i cant guarantee if there any good succession plan in 100 years later. I want an investment where even dumb management can also run it successfully, because in someday ahead, it will have one.

MAS is bureaucratic and appointment not based on meritocracy. I dont see any competency in jauhari yahya. Corporate turnaround seldom turn