tag:blogger.com,1999:blog-1609074421438585217.post6743884773958327550..comments2024-01-28T11:41:12.149+08:00Comments on T.U.B Investing: Review Of My Venture Into Deep Value StocksThe Unique Bunch (T.U.B)http://www.blogger.com/profile/18291160695754244321noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1609074421438585217.post-77102866161986466462016-07-21T23:14:54.131+08:002016-07-21T23:14:54.131+08:00Hi Boon Song,
Thank for reading my blog post.
I ...Hi Boon Song,<br /><br />Thank for reading my blog post.<br /><br />I like to say - thank you for reviewing my purchases.<br /><br />I understand there are A LOT OF ISSUE with USP Group Ltd and I am happy you have pulled out most of them.<br /><br />But i believe this is prior to their recent 2 M&A and the 2 companies that they are acquiring have significant fixed assets.<br /><br />This will boost their fixed assets overall and they will be significantly undervalued.<br /><br />This should happen in their next annual report and hopefully people recognized that and buy into the company.<br /><br />Hope this explains.<br /><br />Regards,<br />TUBThe Unique Bunch (T.U.B)https://www.blogger.com/profile/18291160695754244321noreply@blogger.comtag:blogger.com,1999:blog-1609074421438585217.post-32538176039008622182016-07-21T22:05:42.008+08:002016-07-21T22:05:42.008+08:00I see.. thanks for sharing.
In return, I took a l...I see.. thanks for sharing.<br /><br />In return, I took a look at the annual report for USP and like to share with you some of my inputs...<br />1) The CEO and ED has a very large fix salary component. But what frightens me is that the amount of $ awarded is not given at all.<br /><br />2) two rights issues within 10 years.<br /><br />3) if you were to buy a company based on book value, i think USP might not be the best choice. <br /><br />of its total assets, PPE is worth 31%. If you check note 9, it says that the value of PPE is stated at fair value. it has only 15 years of life left.<br /><br />4) it also has a huge amount of accounts receivable. most of it are advances to suppliers. this makes me very uncomfortable.<br /><br />5) Note 36 describe a legal case... seems a little complicated for me..<br /><br />6) why is Ms Weng Huixin, a professor in a university, the biggest shareholder in this company? this bear some though<br /><br />7) The CEO is marketed with credentials in M&A and IPOs, both which, to myself, bears little value to this company.<br /><br />my email is boonsong@gmail.com ... hopefully you don't mind replying to my email? I do check blogs from time to time but I can't remember where I leave a comment or two, at times...<br />-boonsonglbshttps://www.blogger.com/profile/16425007771209608332noreply@blogger.comtag:blogger.com,1999:blog-1609074421438585217.post-40458054284725956702016-07-14T12:21:09.962+08:002016-07-14T12:21:09.962+08:00Hi Boon Song,
For USP Group Limited, just to clar...Hi Boon Song,<br /><br />For USP Group Limited, just to clarify, I did not think it is a mistake. It is just a huge risk that you take on when you invest in it.<br /><br />For Lafe, it is more on impulsive buying WITHOUT UNDERSTANDING THE BUSINESS BEHIND AND NOT ENOUGH DUE DILIGENCE. If you see Valuebuddies forum thread on this company, there is a lot of accusation on its management. It got me scared. Furthermore, the company kana SGX watchlist out of nowhere. In addition, the company sold its assets through an interested party deal which will take years to get back - Something I realize after going deeper into the books. Basically for Lafe, I bought base on low PB without knowing much more.<br /><br />At the end of the day, deep value investing has a lot of risk. You must really understand why it has such a low PB at the start.<br /><br />Someone once told me, "there is always a reason behind the low PB. Is it because there are others that know more than I do that are not keen on this stock?"<br /><br />Knowledge is the key to deep value investing.<br /><br />Regards,<br />TUBThe Unique Bunch (T.U.B)https://www.blogger.com/profile/18291160695754244321noreply@blogger.comtag:blogger.com,1999:blog-1609074421438585217.post-31840290407523784952016-07-13T19:24:34.495+08:002016-07-13T19:24:34.495+08:00care to share why you might have make a mistake wi...care to share why you might have make a mistake with USP Group and Lafe?<br />I have no idea what these companies are and why you decided to sell or buy them in the first place.. care to share? lbshttps://www.blogger.com/profile/16425007771209608332noreply@blogger.com