my portfolio now,
Vitrox - qued to sell
Airasia - qued to sell
Tenaga - dont know whether to hold or not.
Vizione - (dont know why i buy this stupid stock)
DRB-Hicom - Qued to sell
Eco-world
Maybank

which UT u purchased? I am going to meet an agent to buy Lion group.

Well u cannot go wrong with Tenaga..
There's no others companies supply Electricity to our home. I mean for Semenanjung Malaysia
Sabah & Sarawak got their own company..

Generally, as a rule of thumb, you can say that for a company with a long-form ROE of 10%, the P/BV will roughly be around ~1.0X. However, from here on out, there is an exponential relationship between ROE and P/BV. So say a company with a long-form ROE of 20% may have a P/BV of 3.0X, and a company with a long-form ROE of 30% may have a P/BV of 6.0X etc.

For SCICOM over the past 2 years it has consistently got an ROE of ~42%. It's P/BV is 8.0X. I think it's an OK price. May even be undervalued. But I have no idea about future outlook since that's always priced in.

Personally, I never invest in these types of companies. Cause there is very little downside protection. The moment ROE tumbles P/BV will also fall hard.

I rather invest in "fallen giants" with depressed valuations or "growers" with undemanding valuations to protect myself on the downside. But really, you need to do your own research, cause SCICOM may fall under the "growers with undemanding valuations" category.

You use DCFA? How do you determine the discount factors and predict future cash flow? Maybe you can show us an example.

In any case, even with PEG method, not easy to find undervalued stocks in Bursa at this time.

May I know what are the R and r in first formula?
I assume the 25% is margin of safety. In Malaysian market, you can hardly get anything with 25% MoS.

Recall that Warren Buffett said:
It's far better to buy a wonderful company at fair price, than a fair company at wonderful price.

So for wonderful companies, you may want to use a smaller MoS.

Other things we can do:
- search for undiscovered gems (not easy though)
- invest in overseas' market

If you are not comfortable investing in foreign stocks directly, try unit trust.

any shifu here can explain why Zecon ROE 51 but PE only 1.36 ?

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about EPS hmmm

Ye ke? I haven't read the report of Poh Huat yet. I only saw this...

Earnings per share (EPS) improved to 4.97 sen from 1.82 sen. Revenue for the quarter grew 20% to RM127.65 million from RM106.46 million in 2QFY16, its Bursa Malaysia filing today showed.

Sifus, what is the first at most important details when you guys evaluate a company performance?

I always compare Y to Y, then second come Q to Q.

i have to ask, you ignore PE in your screening?

Edit: i guess you have included PE < 10 with above 2 parameter.

Good screening. I will add increasing EPS and DPS.
For me, use google finance to see 5 years of price in graph form, if it's in the middle/low, buy. Of course some times exception happens and buy at high price but can average down.

Now that I have my dividends, I am using C. Before this, just buy (to get my dividend starting)

what is your minimum expected earning growth for 5y and 10y?

i mean based on the screener you shared, do you look for the company earning growth, as there is a filter on that.

so from earning growth you derived intrinsic value by projecting it into future and pick the best discount you could find from the market, am i right?

if that is the way, then you have to constantly adjust your intrinsic value whenever new earning released, and your model will be right and wrong from Q to Q.

So, i guess it end up would be same if one simply filter for positive earning growth in step one.

But for me i screen for technical as first step broadly, second step to verify whether fundamental fits my min requirements, because to me priority is risk control (or market timing) > selecting good company. At the point of fund availability, I look at what satisfy both my risk control and fundamental assessment and enter accordingly with tight sl. My method will not let me find the greatest stock in bursa, but most likely it will let price move in my favor most of the time to allow tp.

briefly, you want to calculate drawdown between current price to fractals or moving average or previous resistance, whichever that previously responded well to derive the % risk. This method assume that most fundamentally good stocks would have moved hence technical risk would be rather high, so you could enter choosing the least risk among preciously filtered fundamental stocks basket. You wait patiently, if nothing within your defined risk factor, you stay out from market, sit on your itchy hands.

Nowadays you cannot define what trader or investor do exactly, they have each of their styles depending to their priority, risk appetite, fund size, investment timeframe, etc. In the end, the question you have to answer is what is your comfortable method that you feel most reasonable within your restrictions. But if you are a fund manager, first priority for you is manage your risk, fundamental/technical/market risks.