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Good stocks cheap
12-11-2019, 09:29 AM.
Post: #11
RE: Good stocks cheap
It seems to me that anything positives also can be linked to the "beloved stock"?
Like a mold (the beloved company), the positive stuffs are just forcefully morphed into it.
Maybe can try to do your best to kill the beloved idea (company) instead?
It doesn't really value-add much to keep sharing the positive things about the "marvelous" company.

Yours truly own MMH since 2010 as well and sold out most during the up cycle and retain at least 30%.
I think it's a great cyclical company with great CEO/Founder.
I do think it has certain moat (overused and overemphasized term).
But it's to me still in cyclical industry (albeit with good long term prospect).
Why do I sell, opportunity cost is the main reason and when the Management (mainly COO, CFO) started to sound unbeatable.
Fall from Hubris is a great humbling tool.

<still vested>
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My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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12-11-2019, 12:08 PM.
Post: #12
RE: Good stocks cheap
(11-11-2019, 09:24 PM)¯|_(ツ)_/¯ Wrote: @gzbkel - correct. It's jumbled up based on my own internalisation of the book aka a structure for me to define Micro-Mechanics moat. The book actually suit my investment style. I thought of using Micro-Mechanics as a case study for each of the chapters but I'm not sure whether I will get some complaints (especially from Moderator). 

hi ¯|_(ツ)_/¯,
No issue to use MM as a case study in this thread. In fact, i think using some real examples would be a good thing to translate theory into practice.


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12-11-2019, 09:50 PM.
Post: #13
Introducing Micro-Mechanics as case study for Good stocks cheap
Introducing Micro-Mechanics as case study for Good stocks cheap 


This book puts forth a model. 
The model does three things. 
First, it makes it likely that one will make investments that, over a lifetime, produce above-market rates of return. 
Second, the model makes it unlikely that one will make investments that deliver below-market rates of return. 
Third, the model also introduces the possibility that one will not make investments that would have delivered above-market rates of return. 

The model begins with three steps. 
First, do I understand it? 
Second, is it good?
Third, is it inexpensive?

Begin with the end in mind, the introduction expressed exactly how I see the returns of Micro-Mechanics.
I felt that Micro-Mechanics will likely produce above-market rates of return.
Unlikely, Micro-Mechanics will deliver below-market rates of return. So far, so good. Both valuebuddies ksir and myself had enjoyed 400% growth since our initial purchase.
Lastly, I had to agree that this model might produce the possibility of below-market rates of return. The possibility always exist.
This pointer will allow me to be alert to significant events that changes the investment merits of Micro-Mechanics.
[You might not know, I had throughout my holding of Micro-Mechanics, seeking help from quite a few valuebuddies for their input on risks of Micro-Mechanics. Yes, even our legendary d.o.g. too.  Understanding risks of owning Micro-Mechanics is and will always my top priority]

Let's begin the journey to explore together using Micro-Mechanics as an case study for "Good Stocks Cheap".

Since there will be 21 chapters and so my intentions for 21 posts to answers these 3 questions.  My posts will never be exhaustive and valuebuddies are encourage to also think/read along the following:
1. Understanding Micro-Mechanics
2. Is Micro-Mechanics good?
3. Is Micro-Mechanics inexpensive?

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20-11-2019, 07:50 AM.
Post: #14
Rainbow  Learning from a case study: Micro-Mechanics
A) Understanding Micro-Mechanics
1. Products
2. Customers
3. Industry
4. Form
5. Geography
6. Status

Basically, the Company dealt in 2 types of products, i.e. tooling for assembly and testing of semiconductors and critical parts for wafer fabrication (known as the front-end process in the semiconductor industry). As many of these tools and parts were consumable in nature, they generated recurring revenue and the Company strived to achieve and sustain heathy profit margins.

*** I just saw Micro-Mechanics AGM meeting minutes and felt that valuebuddies were asking questions around Micro-Mechanics products in particular in 5G.

I would like to shared in Micro-Mechanics thread instead of this case study thread.

*** to be continue

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感恩 Thank you

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