tag:blogger.com,1999:blog-37872616.post7306055245169419373..comments2024-03-29T17:14:25.039+08:00Comments on BULLy the BEAR: Valuable Vicomla papillionhttp://www.blogger.com/profile/01372278083694506953noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-37872616.post-63783070323129822082008-12-11T21:29:00.000+08:002008-12-11T21:29:00.000+08:00Hi Bala,Oh, I attached a 3Q results in the post as...Hi Bala,<BR/><BR/>Oh, I attached a 3Q results in the post as well. It's in one of the links in the first paragraph.<BR/><BR/>If you click on that, you'll see that in the balance sheet on page 3 of 13, there is a current liabilities of 21,876k in the 3Q08. Add this to a non-current liabilities of 936k, we have a total debt of 22,812k. Total equity stands at 66,041k.<BR/><BR/>So total debt/equity is 0.345 (22812/66041 = 0.345) or 34.5%. Of their capitalisation, only 25.7% consists of debts (most of which are short term liabilities).<BR/><BR/>You'll notice that the quality of their liabilties are geared towards short term liabilities. They have rather negligible long term debts (no bank borrowings, no notes payable, only tax liabilities), which is great. <BR/><BR/>In light of this, the current ratio is a better gauge of their solvency. At 1.57, it's excellent.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-37124255716647862732008-12-11T17:15:00.000+08:002008-12-11T17:15:00.000+08:00Good analysis. They seem to be debt free...how did...Good analysis. They seem to be debt free...how did you compute a debt equity of 34.5%?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37872616.post-89191236017842530072008-11-18T12:35:00.000+08:002008-11-18T12:35:00.000+08:00Hi LP,i agree with your argument. but even the gre...Hi LP,<BR/><BR/>i agree with your argument. but even the greatest investor like warren buffett mentioned his criteria is one that has a track record of dividends payout.<BR/><BR/>as for growth companies, we can look at companies past and analyse its growth. but the future growth may or may not be guaranteed as well and can be suddenly affected by some systematic risk that we are facing right now.<BR/><BR/>however a company with a good moat like smrt, vicom or some other transportation, utlities, medical companies, their cashflow is more or less guaranteed. they dont necessarily need to grow anymore but certainly their cashflow is not disrupted during bad times as people still need to take transport or go hospitals as for the medical sector.<BR/><BR/>as far as i can think, future growth is less uncertain than future dividends payout.<BR/><BR/>anyway my philosophy is still the same, i hold a collection of whatever stocks, be it growth, dividend, trusts, reits, etc :PMike Dirnthttps://www.blogger.com/profile/04811948691612939470noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-49406902894424453332008-11-17T21:45:00.000+08:002008-11-17T21:45:00.000+08:00Hi Mike,Thks for visiting :)No longer waiting for ...Hi Mike,<BR/><BR/>Thks for visiting :)<BR/><BR/>No longer waiting for vicom because I think there's something funny with buying a company because of the dividends. It's somehow isn't the kind of investment philosophy that I had in mind. What if the dividends cut, do I still want that company? I think dividends is part of the perks that the company gives as a result of growth and their earnings, hence I would still buy a company due to its growth and earnings, not solely due to dividend. <BR/><BR/>Somehow, I don't think vicom makes the cut. Thks for ur recommendation on SATS, will take a look at it :)la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-64709346814016017902008-11-17T14:46:00.000+08:002008-11-17T14:46:00.000+08:00hi LP,been a long time i last read your postings. ...hi LP,<BR/><BR/>been a long time i last read your postings. sad to hear about your past experiences. i believe everyone have gone through similar events probably at even greater scale. its good to come out stronger than previously.<BR/><BR/>as for me, i got a fair share of bad debts to writedown. all add up to probably a few k and maybe another near 10k of realised losses from stocks, unit trusts and edownment plan.<BR/><BR/>so still waiting for vicom? :) you may want to take a look at SATS. another similar stock with good cashflow, low debt, dividend play but with presence around the globeMike Dirnthttps://www.blogger.com/profile/04811948691612939470noreply@blogger.com