23-05-2015, 11:41 AM
(23-05-2015, 01:18 AM)amperex Wrote: [ -> ]Thanks to both vesfreq and CityFarmer for detailed numbers and write ups on Sheng Siong. I am impressed with the work put in by both. I supposed this is what you called passion. I gained much from reading both analysis.If I'm not wrong, the statement "its better to be approximately right than to be precisely wrong" came from Kaplan and Cooper's book one "Cause and Effect". Good read. May be memory failed me that Buffet said too many things.
I did my own back of the envelope calculations.
First quarter earnings approximately $14 mio.
Full year approximately $56 mio. EPS 3.72 cents. The Chairman mentioned in the latest annual report that they committed to pay 90% of earnings as dividend in 2015 and 2016.
That means dividend of 3.3 cents.
Warren Buffett said that "it is better to be approximately right than precisely wrong".
So I think I am happy with this set of numbers. Of course these rough numbers is being reinforced by reading what CityFarmers have written in his articles and now the numbers from vesfeq.
What about the valuations ? At todays closing of 89 cents dividend yield is 3.7%. Not fantastic but still higher than my discount rate of 3%. I don't add in any equity risk premiums as long as I think that current dividend is predictable and sustainable. I am normally happy with dividend yield above 4%. But I do continue to add if dividend falls below 4% ( due to rising price and not because of a cut in dividends ) if I do own the stock already.
If one is holding long term, its good to also take into consideration the longer term upside due to population growth. So, once when I heard Dr Liew (during the DBS insights conference) talked about the 10m population being "achievable", I think many responded with a very glum look. Taking this in positive light, this also means plenty of upside... should the 10m be an eventuality, though no one knows when.
PS: I didnt do much work. It was a 1 hour sort of desktop analysis. Ok.... may be I cheated cos I do this very often. > Anyone could have done the same. But, what made a greater diff is the sharing on the forum. Only sharing the knowledge I learned from smart and not-so-smart businessman. Knowledge is power when applied. There is a difference between "knowing and not doing" and "knowing and doing". In Peter Lynch's words, the common folk also has the same ability to pick good stocks. Fact is because we come across various businesses in our daily lives, which we are far more familiar with than the analysts and "professionals".