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.

good bro,
so cheap the pe,
less than 10 @+@"

since quarterly report released
next day, open 2.2
now current 2.15 (discount price)
so far until now, went lowest 2.09 ~~
highest 2.35....

can share what is the reason u buy de?
wanna to learn ~~

I bought a new counter today, YSPSAH. It looks OK on paper. Hope for the best.

Adenan gone, this stock still can work?

In My Honest Opinion

nah man I still have faith in aax. I purchased it with an understanding that this will be a long term investment. didn't know that the counter is heavily traded by IB

Aax earning shrunk because of our currency went down but their passenger loading has increased. now that our oil price is low, currency is getting stronger I am now waiting for Q2.

I'm still thinking if I cut loss now and dump into VS then come back again.

seems like YSPAH not much activity this few days, dropping slowly

aiyaa...
miss the boat at
31 may ALCOM
give dividend so much...
please correct me if i am wrong..

if i buy at 31 may 1.42,
dividend 0.205,
my dividend profit without tax (single tier) = 14.43%
today the price is 1.92, if enter now, dividend profit will be = 10.67%

how u all think about this ALCOM , ind-pro

ROE >15%
Debt to equity < 0.5
Current Ratio > 2
Price to Book < 1.5

Yes I purposely ignore PE. Because it varies quite significantly between industries. This is for screening. For calculating intrinsic value I did include average 10 years PE. In short, I don't use it for screening, but I did use it when calculating my intrinsic value. And I average 10 years PE.

Screening is for fundamental. For this I really focus on fundamental only.
Calculating intrinsic value is to get fair price to enter. In my opinion, average PE work better here in valuation step.

What do you think? 

You mean my (stockholder's) earnings or company's earnings?

Edit: Assume u mean my earnings. I expect 10-15% annualized return for each counter. Again, I mentioned before, if less, I rather buy unit trust. So I don't bother buying counter which have expected return less than 10-15%. Expected is the keyword. I know if may fail to give me 10-15% return, for example in case the company I invest suddenly bankrupt but to the very least it's expected return must be 10-15%, not less.

I didn't use earnings growth to screen(my first step) company. But I do use earning growth to calculate intrinsic value (my second step). Interesting fact is that even without putting earning growth in the stock screener, most of the stock counters that I got from that few criteria I listed usually have positive earnings growth. My method of valuation (second step) do require positive earning growth. With 0% or negative earning growth I can't estimate their intrinsic value, so I'll usually skip them. So I would say at least 1% for earning growth rates. But I think it won't make a difference to the list of stock counters that I get from stock screener.

What's your opinion? 

So you look at technical analysis first, and then only u look at fundamental am I right? How do you screen for technical to prioritize risk control? Can you briefly tell me? I want to learn too. 

I want to make it clear.

Trader: Look at price movement and do technical analysis only, ignore fundamental completely.
Value investor : Find best company (best fundamental), then try to find intrinsic value (to look for entry price)
You: Try to find best price (with technical analysis), then enter if fundamental is strong, do not enter if fundamental is not strong.

Am I right?