06-02-2014, 01:44 PM
(06-02-2014, 01:15 PM)BlueKelah Wrote:(06-02-2014, 11:30 AM)Ben Wrote: This is an area that I am paying more attention on. Numbers don’t lie, but numbers alone is not good enough to predict the future. Take for example Asia Enterprise, a company I invested since 2007. This company has an unbroken track record of profitability since inception. It has a solid BS with high cash and little debts, plus a track record of paying at least 40% of profit as dividends. However, I am not able to see the coming collapse of steel price that beset the company for the next few years. Till now, it is still trading at lower price that my buy price, fortunately, it remains profitable every year and continue to pay dividends every year.
Yes, indeed finance person is different from accounting person. Thanks.
Dun worry, no one saw the coming boom of USA / china property prices either. Steel prices will revert to mean, in fact steel billet has been up >20% few weeks now but AEH and Hupsteel dont seem to have responded.
This is the beauty of competition, steel suppliers can't raise their price at the first sign of the steelmill's cost is going up. They normally have to clear their old stock first. Likewise when the price is heading down.