Asia Enterprise Holdings

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#10
mrEngineer Wrote:My first concern is how would one achieve revaluation using the figures from the B/S?

For most stockists the carrying value of inventory is cost or net realizable value, whichever is lower.

However there is a time lag since the balance sheet may be 3 months old. So you need to look at steel prices from the last 3 months to see whether prices have changed. If they have then you need to adjust the inventory value up/down by the appropriate percentage. In the past, steel prices were fairly stable. But in recent years the volatility has led to extraordinary inventory gains (and losses) for all the stockists.

cif5000 Wrote:IMHO, the current price is conservative that
- it does not factor in the "earning power"
- it is a discount to the liquidation value
- it ascribes no value to the management and "sales network"

Earning power is best tracked over a full market cycle to even out the boom/bust earnings. Look at the change in book value per share, as not everything is captured in P&L. AEH compounded book value per share faster than most of the other stockists - why? Is this outperformance likely to persist?

Liquidation value of the inventory is likely to be 30%-50% discount to the adjusted carrying value. No competitor will buy the inventory except at a big discount since they can replicate it themselves. Money is not free - buying inventory locks up working capital. So any extra inventory has to be cheaper to compensate.

The sales network is nothing special, especially in Singapore where it is a fairly friendly neighbourhood. Everybody knows who the customers are. Everybody knows who the suppliers are. Everybody knows what everybody's costs are. They even buy from each other. And you can't (officially) bribe the customers' employees. It is a question of what products you choose to carry, and how low you are willing to go on price.

As usual, YMMV.
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Messages In This Thread
Asia Enterprise Holdings - by newyorkcityboy - 04-01-2011, 12:18 AM
RE: Asia Enterprise Holdings - by D123 - 04-01-2011, 10:26 AM
RE: Asia Enterprise Holdings - by cif5000 - 04-01-2011, 10:47 AM
RE: Asia Enterprise Holdings - by d.o.g. - 04-01-2011, 11:16 AM
RE: Asia Enterprise Holdings - by mrEngineer - 04-01-2011, 12:05 PM
RE: Asia Enterprise Holdings - by cif5000 - 04-01-2011, 12:39 PM
RE: Asia Enterprise Holdings - by donmihaihai - 04-01-2011, 01:49 PM
RE: Asia Enterprise Holdings - by mikh - 04-01-2011, 01:06 PM
RE: Asia Enterprise Holdings - by cif5000 - 04-01-2011, 01:06 PM
RE: Asia Enterprise Holdings - by d.o.g. - 04-01-2011, 06:51 PM
RE: Asia Enterprise Holdings - by cif5000 - 04-01-2011, 09:37 PM
RE: Asia Enterprise Holdings - by nextwave - 04-01-2011, 11:28 PM
RE: Asia Enterprise Holdings - by donmihaihai - 04-01-2011, 10:22 PM
RE: Asia Enterprise Holdings - by d.o.g. - 04-01-2011, 11:26 PM
RE: Asia Enterprise Holdings - by cif5000 - 04-01-2011, 11:45 PM
RE: Asia Enterprise Holdings - by donmihaihai - 05-01-2011, 09:53 AM
RE: Asia Enterprise Holdings - by newyorkcityboy - 05-01-2011, 12:03 AM
RE: Asia Enterprise Holdings - by d.o.g. - 05-01-2011, 09:00 AM
RE: Asia Enterprise Holdings - by dydx - 05-01-2011, 10:08 AM
RE: Asia Enterprise Holdings - by cif5000 - 05-01-2011, 01:10 PM
RE: Asia Enterprise Holdings - by egghead - 05-01-2011, 10:02 AM
RE: Asia Enterprise Holdings - by egghead - 05-01-2011, 10:51 AM
RE: Asia Enterprise Holdings - by bluechipstamp - 05-01-2011, 01:20 PM
RE: Asia Enterprise Holdings - by Blackjack - 05-01-2011, 11:44 AM
RE: Asia Enterprise Holdings - by d.o.g. - 05-01-2011, 11:54 AM
RE: Asia Enterprise Holdings - by egghead - 05-01-2011, 01:16 PM
RE: Asia Enterprise Holdings - by d.o.g. - 05-01-2011, 03:25 PM
RE: Asia Enterprise Holdings - by cif5000 - 05-01-2011, 04:08 PM
RE: Asia Enterprise Holdings - by d.o.g. - 05-01-2011, 05:15 PM
RE: Asia Enterprise Holdings - by BlueKelah - 22-08-2014, 09:49 PM
RE: Asia Enterprise Holdings - by BlueKelah - 07-08-2015, 12:39 PM
RE: Asia Enterprise Holdings - by GFG - 07-08-2015, 01:49 PM
RE: Asia Enterprise Holdings - by GFG - 03-02-2016, 01:34 AM
RE: Asia Enterprise Holdings - by beau - 19-11-2015, 01:35 PM
RE: Asia Enterprise Holdings - by heifien91 - 19-11-2015, 09:23 PM
RE: Asia Enterprise Holdings - by sgpunter - 19-11-2015, 03:47 PM
RE: Asia Enterprise Holdings - by cyclone - 02-02-2016, 08:36 PM
RE: Asia Enterprise Holdings - by money - 02-02-2016, 08:47 PM
RE: Asia Enterprise Holdings - by thinleyw - 03-02-2016, 01:49 AM
RE: Asia Enterprise Holdings - by Greenrookie - 03-02-2016, 06:04 AM
RE: Asia Enterprise Holdings - by thinleyw - 03-02-2016, 06:06 AM
RE: Asia Enterprise Holdings - by Greenrookie - 03-02-2016, 06:07 AM
RE: Asia Enterprise Holdings - by Greenrookie - 03-02-2016, 06:10 AM
RE: Asia Enterprise Holdings - by slowandsteady - 12-03-2016, 07:58 AM
RE: Asia Enterprise Holdings - by beau - 17-03-2016, 08:05 PM
RE: Asia Enterprise Holdings - by BlueKelah - 17-03-2016, 09:18 PM
RE: Asia Enterprise Holdings - by GFG - 17-03-2016, 09:25 PM
RE: Asia Enterprise Holdings - by beau - 17-03-2016, 09:33 PM
RE: Asia Enterprise Holdings - by Raks - 17-03-2016, 09:35 PM
RE: Asia Enterprise Holdings - by beau - 17-03-2016, 09:46 PM
RE: Asia Enterprise Holdings - by egghead - 18-03-2016, 10:14 AM
RE: Asia Enterprise Holdings - by BlueKelah - 17-03-2016, 09:54 PM
RE: Asia Enterprise Holdings - by GFG - 19-03-2016, 02:34 AM
RE: Asia Enterprise Holdings - by beau - 18-03-2016, 12:04 AM
RE: Asia Enterprise Holdings - by BlueKelah - 18-03-2016, 06:40 AM
RE: Asia Enterprise Holdings - by retired1again - 18-03-2016, 10:11 PM
RE: Asia Enterprise Holdings - by BlueKelah - 18-03-2016, 10:23 PM
RE: Asia Enterprise Holdings - by dydx - 19-03-2016, 08:54 AM
RE: Asia Enterprise Holdings - by GFG - 19-03-2016, 09:14 AM
RE: Asia Enterprise Holdings - by dydx - 19-03-2016, 05:00 PM
RE: Asia Enterprise Holdings - by GFG - 21-03-2016, 04:08 PM
RE: Asia Enterprise Holdings - by slowandsteady - 20-04-2016, 08:08 PM
RE: Asia Enterprise Holdings - by brattzz - 20-04-2016, 09:02 PM
RE: Asia Enterprise Holdings - by TTTI - 20-04-2016, 10:52 PM
RE: Asia Enterprise Holdings - by brattzz - 20-04-2016, 11:34 PM
RE: Asia Enterprise Holdings - by slowandsteady - 21-04-2016, 12:16 PM
RE: Asia Enterprise Holdings - by beau - 21-04-2016, 09:58 PM
RE: Asia Enterprise Holdings - by slowandsteady - 22-04-2016, 11:19 AM
RE: Asia Enterprise Holdings - by beau - 22-04-2016, 12:51 PM
RE: Asia Enterprise Holdings - by BlueKelah - 21-04-2016, 12:27 PM
RE: Asia Enterprise Holdings - by slowandsteady - 21-04-2016, 12:35 PM
RE: Asia Enterprise Holdings - by BlueKelah - 21-04-2016, 01:47 PM
RE: Asia Enterprise Holdings - by BlueKelah - 22-04-2016, 01:02 PM
RE: Asia Enterprise Holdings - by slowandsteady - 22-04-2016, 01:49 PM
RE: Asia Enterprise Holdings - by BlueKelah - 22-04-2016, 03:30 PM
RE: Asia Enterprise Holdings - by beau - 22-04-2016, 02:30 PM
RE: Asia Enterprise Holdings - by beau - 22-04-2016, 05:39 PM
RE: Asia Enterprise Holdings - by slowandsteady - 24-04-2016, 02:37 PM
RE: Asia Enterprise Holdings - by BlueKelah - 24-04-2016, 05:48 PM
RE: Asia Enterprise Holdings - by slowandsteady - 25-04-2016, 03:14 PM
RE: Asia Enterprise Holdings - by desmondxyz - 04-05-2016, 08:53 PM
RE: Asia Enterprise Holdings - by BlueKelah - 05-05-2016, 08:51 AM
RE: Asia Enterprise Holdings - by TTTI - 05-05-2016, 10:42 PM
RE: Asia Enterprise Holdings - by beau - 05-05-2016, 11:29 PM
RE: Asia Enterprise Holdings - by TTTI - 06-05-2016, 02:17 AM
RE: Asia Enterprise Holdings - by BlueKelah - 06-05-2016, 11:03 PM
RE: Asia Enterprise Holdings - by brattzz - 07-05-2016, 03:43 PM
RE: Asia Enterprise Holdings - by Raks - 08-05-2016, 10:42 PM
RE: Asia Enterprise Holdings - by TTTI - 08-05-2016, 10:56 PM
RE: Asia Enterprise Holdings - by BlueKelah - 09-05-2016, 08:03 AM
RE: Asia Enterprise Holdings - by slowandsteady - 10-05-2016, 09:15 PM
RE: Asia Enterprise Holdings - by BlueKelah - 10-05-2016, 09:41 PM
RE: Asia Enterprise Holdings - by TTTI - 10-05-2016, 09:54 PM
RE: Asia Enterprise Holdings - by beau - 10-05-2016, 10:04 PM
RE: Asia Enterprise Holdings - by slowandsteady - 11-05-2016, 07:42 AM
RE: Asia Enterprise Holdings - by weijian - 11-05-2016, 09:10 AM
RE: Asia Enterprise Holdings - by CityFarmer - 11-05-2016, 09:24 AM
RE: Asia Enterprise Holdings - by slowandsteady - 11-05-2016, 10:57 AM
RE: Asia Enterprise Holdings - by weijian - 11-05-2016, 12:37 PM
RE: Asia Enterprise Holdings - by CityFarmer - 11-05-2016, 04:41 PM
RE: Asia Enterprise Holdings - by weijian - 11-05-2016, 05:24 PM
RE: Asia Enterprise Holdings - by CityFarmer - 11-05-2016, 08:29 PM
RE: Asia Enterprise Holdings - by weijian - 11-05-2016, 11:41 PM
RE: Asia Enterprise Holdings - by CityFarmer - 12-05-2016, 09:31 AM
RE: Asia Enterprise Holdings - by weijian - 12-05-2016, 09:59 AM
RE: Asia Enterprise Holdings - by specuvestor - 11-05-2016, 02:28 PM
RE: Asia Enterprise Holdings - by slowandsteady - 02-08-2016, 08:57 PM
RE: Asia Enterprise Holdings - by TTTI - 03-08-2016, 09:37 AM
RE: Asia Enterprise Holdings - by weijian - 03-08-2016, 11:07 AM
RE: Asia Enterprise Holdings - by BlueKelah - 03-08-2016, 11:33 AM
RE: Asia Enterprise Holdings - by beau - 09-08-2016, 12:13 PM
RE: Asia Enterprise Holdings - by TTTI - 09-08-2016, 06:29 PM
RE: Asia Enterprise Holdings - by slowandsteady - 09-08-2016, 06:51 PM
RE: Asia Enterprise Holdings - by beau - 09-08-2016, 10:37 PM
RE: Asia Enterprise Holdings - by slowandsteady - 10-08-2016, 09:24 AM
RE: Asia Enterprise Holdings - by donmihaihai - 10-08-2016, 11:56 PM
RE: Asia Enterprise Holdings - by slowandsteady - 11-08-2016, 12:46 PM
RE: Asia Enterprise Holdings - by beau - 11-08-2016, 12:49 PM
RE: Asia Enterprise Holdings - by slowandsteady - 11-08-2016, 01:59 PM
RE: Asia Enterprise Holdings - by beau - 12-08-2016, 04:48 PM
RE: Asia Enterprise Holdings - by slowandsteady - 15-08-2016, 08:46 AM
RE: Asia Enterprise Holdings - by desmondxyz - 31-08-2016, 12:16 AM
RE: Asia Enterprise Holdings - by slowandsteady - 31-08-2016, 11:00 AM
RE: Asia Enterprise Holdings - by BlueKelah - 31-08-2016, 11:05 AM
RE: Asia Enterprise Holdings - by brattzz - 31-08-2016, 12:00 PM
RE: Asia Enterprise Holdings - by slowandsteady - 01-09-2016, 02:14 PM
RE: Asia Enterprise Holdings - by brattzz - 01-09-2016, 03:57 PM
RE: Asia Enterprise Holdings - by beau - 26-04-2017, 09:05 PM
RE: Asia Enterprise Holdings - by TTTI - 15-05-2017, 06:37 PM
RE: Asia Enterprise Holdings - by beau - 15-05-2017, 11:39 AM
RE: Asia Enterprise Holdings - by zz... - 16-05-2017, 09:19 AM
RE: Asia Enterprise Holdings - by slowandsteady - 24-07-2017, 09:30 PM
RE: Asia Enterprise Holdings - by cyclone - 29-01-2019, 07:57 PM
RE: Asia Enterprise Holdings - by karlmarx - 12-07-2019, 08:49 PM
RE: Asia Enterprise Holdings - by GFG - 07-05-2014, 06:11 PM

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