VICOM

I do not think a buy out will ever occur unless Comfort Delgro (holding over 68% of the shares) decides to either sell off their share or they buy off the remaining shares.

Personally, as part owner of Vicom, I would prefer it to remain status quo and have Comfort Delgro to continue owning a large percentage of the Vicom. This way, I can be sure that Vicom will have a constant revenue stream from the fleet of Comfort Delgro's cabs. The cabs serves as good moving ads for Vicom too,

With regards to the price of each Vicom's share, I would prefer it to go lower than higher. Unless I need the cash, I would want the price to go lower so I can own a larger share of this perfectly fine company. I still do not get it why do many value investors like to see the price of their shares to go up? I always thought value investing is about getting the company cheap and holding it on forever. There are of cause exceptional cases such as cig butts. However, in this case, I think Vicom is more than a cig but. It is my cash cow.

Vested.

(28-06-2011, 05:15 AM)natnavi Wrote: I still do not get it why do many value investors like to see the price of their shares to go up? I always thought value investing is about getting the company cheap and holding it on forever.

I, for one, do not like to see the price of my shares go up. I share your view that cheap prices make companies more attractive for purchase.

However, I think what you refer to may be the case where a value investor sees steady appreciation in share price over the years which represents the growth of the underlying business. Therefore, it may still be "cheap" (in terms of valuation) but the share price may still rise because the business continues to do better. VICOM may be one such example?

(Not Vested)

(28-06-2011, 06:06 AM)Musicwhiz Wrote:

(28-06-2011, 05:15 AM)natnavi Wrote: I still do not get it why do many value investors like to see the price of their shares to go up? I always thought value investing is about getting the company cheap and holding it on forever.

I, for one, do not like to see the price of my shares go up. I share your view that cheap prices make companies more attractive for purchase.

However, I think what you refer to may be the case where a value investor sees steady appreciation in share price over the years which represents the growth of the underlying business. Therefore, it may still be "cheap" (in terms of valuation) but the share price may still rise because the business continues to do better. VICOM may be one such example?

(Not Vested)

Well, I am fine if my selected stock is overvalued since I will choose to sell it away
This sort of situation will just appear if an investor holds many value stocks.

I personally think that the intrinsic value will keep rising, given its steady increase in ROE and Free Cash Flow. (vested)

Noted that the value of good companies will continue to steadily rise in the long term.

However, I feel uneasy when value investors feel happy when they see the share prices go up.

I love Vicom as a company and I am sure the value of the company will continue to rise overtime as they will have no problem raising the prices to hedge against inflation. The only thing that is preventing me from owning a larger percentage of the Vicom is that I have no view of how Vicom can expand beyond Singapore.

Vicom has started venturing into the middle east but I do not know how well are they doing or how well they will be doing in the future. Their latest annual report did not state how much they earn from the middle east.

If I remembered correctly, Vicom tried to go into some green technology but was unsuccessful. I hope they will do better in the middle east.

(28-06-2011, 06:06 AM)Musicwhiz Wrote:

(28-06-2011, 05:15 AM)natnavi Wrote: I still do not get it why do many value investors like to see the price of their shares to go up? I always thought value investing is about getting the company cheap and holding it on forever.

I, for one, do not like to see the price of my shares go up. I share your view that cheap prices make companies more attractive for purchase.

However, I think what you refer to may be the case where a value investor sees steady appreciation in share price over the years which represents the growth of the underlying business. Therefore, it may still be "cheap" (in terms of valuation) but the share price may still rise because the business continues to do better. VICOM may be one such example?

(Not Vested)

The whole point is for share prices to go up (over a long enough period, and hopefully after you've bought your entire position). That's where to get the funds to buy new undervalued stuff and keep repeating the process.
The Sgp stock market is small in capitalization & choice compared to the US, so the absolute no. of fantastic stocks to hold for 20 years like Geico & Berkshire is a whole lot less.

Another way of looking at it is not from the share price point but more from a dividend yield form.

If you bought a share and the dividend over period of time increases , why sell the stock?

Also, if you got at at a great yield, why sell the stock? unless you can something else of a similar quality with better yield .

The price at which you bought any investment, whether it's great or lousy, is there for you to judge how successful you have been. However, it is irrelevant for judging whether or not you should continue to hold it because it's a sunk cost. For momentum / TA, it's all about past prices of course matter; but for value investors, what matters are the (i) future prospects, and/or (ii) current margin of safety to assets / intrinsic value.

(29-06-2011, 09:34 AM)redcorolla95 Wrote: but for value investors, what matters are the (i) future prospects, and/or (ii) current margin of safety to assets / intrinsic value.

Admittedly, these are the two most difficult aspects to ascertain! That's why I am still always learning and assessing. Investing is not easy but it certainly is interesting!

(29-06-2011, 12:47 AM)redcorolla95 Wrote:

(28-06-2011, 06:06 AM)Musicwhiz Wrote:

(28-06-2011, 05:15 AM)natnavi Wrote: I still do not get it why do many value investors like to see the price of their shares to go up? I always thought value investing is about getting the company cheap and holding it on forever.

I, for one, do not like to see the price of my shares go up. I share your view that cheap prices make companies more attractive for purchase.

However, I think what you refer to may be the case where a value investor sees steady appreciation in share price over the years which represents the growth of the underlying business. Therefore, it may still be "cheap" (in terms of valuation) but the share price may still rise because the business continues to do better. VICOM may be one such example?

(Not Vested)

The whole point is for share prices to go up (over a long enough period, and hopefully after you've bought your entire position). That's where to get the funds to buy new undervalued stuff and keep repeating the process.
The Sgp stock market is small in capitalization & choice compared to the US, so the absolute no. of fantastic stocks to hold for 20 years like Geico & Berkshire is a whole lot less.

True true... Different stradegies but they are both value investing.

Has anyone noticed that there is a sudden jump in price? Someone is buying Vicom quite a fair bit. I wonder what is going on. Any ideas?