Tuesday 19 November 2013

A good and safe bet

In the upcoming issue of The Edge is an article on a Bursa Malaysia listed company that I would invest for my children.

The underlying assets are excellent and will gain values over time, much faster than inflation or bond yield. The Management is conservative and has a good track record. The Company is cash-rich and can easily withstand any economic slowdown. Operating costs are prudently managed.

Yet, it is trading at a very cheap valuation. There is no imminent competitive risk to the Company.

It is one of the few cases where you can invest and sleep soundly.

22 comments:

  1. Please provide name of company. Thanks.

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  2. Don't tell me it's nestle , BAT , Dutch lady hahaha

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  3. Since its mentioned of underlying assets now I actually think its either a property or plantation company.
    Such asset and cash rich co sounded like united plantation , klk or batu kawan or panasonic .. By the time mr tong publish the name of that co - it will no longer be cheap .. Ppl will buy it up .. So I guess he already bought enough for his children .

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  4. Agree with OS, subject is either plantation or property counter and is not liquid. Co cash rich with no need to shore up financial standing hence very little incentive to unlock values quickly. Furthermore cash yields are lower than capital appreciation rates on real estate. For a patient investor you are no worse off since you are covered in terms of cash yield/inflation with a bite at the equity upside (if it comes and when).

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  5. Lbalum? Undervalued n healthy balance sheet yet no one showing interest

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  8. The company is Daiman. The Edge mentions that the RNAV is about RM11 which is reasonable. Why don't analysts cover this stock?

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  9. Analyst have covered in fact but daiman it's being illiquid and the so call value , how will the mgmt or will the mgmt unlock its value remains to be seen. The company which has a larger land bank is actually genting plantations . It's landbank in Johor is only second to uem . But again can't see the value getting unlocked yet hehehe one way to unlock value is do reits , listing of subsidiaries , mergers , and so on and so forth :)

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  10. Coincidently mr tong rainbow crest has join venture with daiman and wide tech owner to develop land in plentong .. Now I begin to see the link :)

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  11. A large local fund should accumulate a major position in Daiman. Make a general offer at say RM4. Take it private.

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  12. If Daiman is undervalued, KSL is SUPER UNDERVALUED!! almost equal land area, with 2 GREAT investment properties KSL CITY MALL and KSL RESORT! Forward PER of ONLY 3.3x and ROE of 20%!! Probably the cheapest property developer in Msia, and some say Asia! What do you think Mr Ong?

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  13. If Daiman is undervalued, KSL is SUPER UNDERVALUED!! almost equal land area, with 2 GREAT investment properties KSL CITY MALL and KSL RESORT! Forward PER of ONLY 3.3x and ROE of 20%!! Probably the cheapest property developer in Msia, and some say Asia! What do you think Mr Ong?

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  14. Messi. You buy KSL and we hold on to the Diamond

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  15. knn never trust the papers. whenever someone wants to SELL they recommend to BUY..
    I buy when the news published @ 3.36 now the so called undervalue has proved undervalue my money. today price only 3.10

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  17. Tong Kooi Ong, disclose how many units of Daiman do you currently hold or sold since the Edge's publication. Don't be a fucktard trying to sell your Daiman that's why you publish an article on the Edge.

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  18. Conflict of interest. Tong Kooi Ong's Crest Builder has business relationship with Daiman. What a bummer. Big liars

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  19. Hi Damien, whats Rainbow Crest Sdn Bhd have to do with Crest Builder Bhd?

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