United Food

at 5 cts if you multiply to all the shares they have 1,111,953,740 the market values this company at only sgd61 million, their bank deposits alone are worth ard sgd100mil

deep market mispricing.

(24-09-2013, 12:35 PM)sgd Wrote: at 5 cts if you multiply to all the shares they have 1,111,953,740 the market values this company at only sgd61 million, their bank deposits alone are worth ard sgd100mil

deep market mispricing.

U seemed to have a lot of conviction that united food truely possesses SGD100 mil in the bank.

However the track record is such, that those who think this way (in terms of the S-chips) are usually not rewarded.

No doubt the px is very very low now (in absolute terms) but think what are the inroads the company has made with regards to their core business? I have doubts if they are really serious running the business in the first place.

(24-09-2013, 01:54 PM)level13 Wrote: U seemed to have a lot of conviction that united food truely possesses SGD100 mil in the bank.

However the track record is such, that those who think this way (in terms of the S-chips) are usually not rewarded.

I understand what you say, I also know many S-chip are also like that, but this one you go see who is the indepentant director then you see whether there is any conviction there.

if the deposits are not real then how are they buying back shares and paying regular dividends.

Viability of company has nothing to do with who is on the board of directors ...

(24-09-2013, 12:20 PM)specuvestor Wrote:

(24-09-2013, 11:21 AM)sgd Wrote: I don't see What is not conservative abt this investment.

Like erratic dvd including skipping dvd this year, twindling cash and bloated inventories and restricted current assets, BV down 40% past 5 years, etc...

(24-09-2013, 02:49 PM)sgd Wrote:

(24-09-2013, 01:54 PM)level13 Wrote: U seemed to have a lot of conviction that united food truely possesses SGD100 mil in the bank.

However the track record is such, that those who think this way (in terms of the S-chips) are usually not rewarded.

I understand what you say, I also know many S-chip are also like that, but this one you go see who is the indepentant director then you see whether there is any conviction there.

if the deposits are not real then how are they buying back shares and paying regular dividends.

One of us is mistaken here

Agree share buyback is a +ve sign but they bought back around 11m shares or S$550k vs the extrapolation of S$160m in current asset... with only S$10m in unencumbered cash. I would certainly think you can turn more positive if they buyback >5% of the company, which only requires about S$3m. Incidentally the holding company cash was about S$540k equivalent as of end June 13

Mr. d.o.g.'s advice on S-chip is rational and with good ground. Although I wouldn't follow blindly on the advice, but dismiss it entirely isn't a good idea.

Cash flow is important and should be scrutinized. But relied on MP director might not seem a rational move. Cash reserve as the ONLY primary reason to invest, might not seem a good idea too.

Since I didn't look into the company fundamental, so I will not comment further.

(not vested)

I think there are still bargain buys on sgx, even though there may only be less than a handful of them. There are still stocks trading at >50% net cash, below book value, with single digit P/E, which may be worth looking at. These are of course local companies. While the depth of discounts they offer isn't great, there has been no precedence to suggest its reported numbers are unreliable.

I think the odds are hugely against our favour when the facts/numbers we base our decisions on cannot be even remotely ascertained.

I cant assign a probability to whether the bulk of cash on the balance sheet is real, which means i cant work out the expected profit or loss, then how to bet?

In the long run, i just think sgd's way of betting will result in some wins, some losses. I am just not sure if the net result is a profit, so for me, i would rather not bet this way. Anyway, that's my character.... who knows sgd's temperament may be suited to such bettting and he made have made big money over such a betting style

However, i think it is important to look at the losses as well and not just come to the forum to tell us how much he can make while keeping quiet about the losses

(24-09-2013, 09:15 PM)safetyfirst Wrote: However, i think it is important to look at the losses as well and not just come to the forum to tell us how much he can make while keeping quiet about the losses

I think there are many investing styles that people follow, some value investor think speculating is the same as going to mbs casino, speculators will think value investing and collecting dividend every year is waste of time. I'm somewhere in between leaning more toward speculating and vintage buy low sell high investing.

For losses everybody in the market will lose money, some keep tabs for what purpose only they know, I treat my losses as tuition fees, I think my cash losses should be over 50k from my lifetime of investing. I'm pretty conservative investing discipline don't short, don't contra, don't leverage, if you follow this very strictly it's very hard to lose much money.

In this forum I like to follow value investing crowd see what they buy, I sometimes copper the stocks they don't like, like this one. For S-Chip I think they earned a bad rap, but most people here I think when they see S-Chip automatically they will say is a fake without even looking at it.

For the record please don't follow I don't need any of you to follow the stocks that I mentioned, only do so for the sake of like minded investors like myself which I think are lurking somewhere around.

(24-09-2013, 11:21 AM)sgd Wrote: Please don't buy it.

current assets alone is around 16cts a share, but share trading at 5 cts 70% discount to current assets. I don't see What is not conservative abt this investment.

I think it depends on the probabilities that one assigns to the current assets, or maybe call it writedown factor. That way, then can make more meaningful comparisons with other net net companies. For singapore companies, probably can find discounts of around 30 to 40% discount to net net.