Can a Graham Net Net be a value trap eg Eksons

[ghchua]

The research rpt (dated 2022) below has a list of stocks with net cash% to market cap. Perhaps VB using net strategy with holdings in the high net-cash-to-mkt-cap ratio stocks can share some experience ....

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Fishing in troubled waters
https://mkefactsettd.maybank-ke.com/PDFS/265080.pdf

Hi dreamybear,

There are some very good stocks in the list actually for net cash% to market cap. Just to name a few examples. SP Corp was delisted at a huge premium from its last traded price before the announcement. Lion AsiaPac had dished out a special cash dividend of 10cts per share on 12 December 2022, a whopping 30%+ one time yield from its share price. A few stocks in the list had been delisted or in the process of being delisted and some had consistently delivered decent dividend yields.

I leave the readers to seek out the gems in the list and I can tell you by just looking at it, it is worth to go through each and every of them . Good luck! 

[weijian]

I have an bad experience with a high cash position. China Stationary is mainland Chinese stationary company listed on Bursa Malaysia. It had tons of cash in its books but when a fire broke out in one of its plants in China, the was a song-and-dance about the investigation etc. All the while you wondered why don't they use the money to rebuild, etc. Anyway to make the long story short, the company eventually went into PN17 and was delisted. Moral of story - be wary of cash holdings from mainland Chinese companies. OK it was years ago, but it makes you wonder about the reliability of the financials.

Before the overseas listed chinese companies crossed the causeway, they already did their round of grabbing in the Little Red Dot.

S-chips started entering the local Singapore market when sentiment start to improve post dotcom 2000 + 2001/2002 recession (911 and 2nd Iraqi war). The majority of them blew up within the next 1-2 years around/after GFC2008.

China Stationary listed in early 2012 on Bursa, by then yours truly already paid enough tuition fees. It was delisted in 2017. Wash, rinse and repeat (but in a different market).

Confessions of a S-chip CEO:
https://fifthperson.com/confessions-of-an-s-chip-ceo/

S chips make a come back in Spore:
https://www.valuebuddies.com/thread-228.html

[weijian]

Hi dreamybear,

There are some very good stocks in the list actually for net cash% to market cap. Just to name a few examples. SP Corp was delisted at a huge premium from its last traded price before the announcement. Lion AsiaPac had dished out a special cash dividend of 10cts per share on 12 December 2022, a whopping 30%+ one time yield from its share price. A few stocks in the list had been delisted or in the process of being delisted and some had consistently delivered decent dividend yields.

I leave the readers to seek out the gems in the list and I can tell you by just looking at it, it is worth to go through each and every of them . Good luck! 

hi ghchua,

I have a confession to make. I have been going through the list of stocks over here instead. It has already completed its first layer of filter, and a very good filter I must say.

http://ghchua.blogspot.com/

[dreamybear]

The research rpt (dated 2022) below has a list of stocks with net cash% to market cap. Perhaps VB using net strategy with holdings in the high net-cash-to-mkt-cap ratio stocks can share some experience ....

----------------------

Fishing in troubled waters
https://mkefactsettd.maybank-ke.com/PDFS/265080.pdf

Hi dreamybear,

There are some very good stocks in the list actually for net cash% to market cap. Just to name a few examples. SP Corp was delisted at a huge premium from its last traded price before the announcement. Lion AsiaPac had dished out a special cash dividend of 10cts per share on 12 December 2022, a whopping 30%+ one time yield from its share price. A few stocks in the list had been delisted or in the process of being delisted and some had consistently delivered decent dividend yields.

I leave the readers to seek out the gems in the list and I can tell you by just looking at it, it is worth to go through each and every of them . Good luck! 

Thanks for your reply.

I also remember your advice on diversifying to  mitigate value traps. 

[ghchua]

hi ghchua,

I have a confession to make. I have been going through the list of stocks over here instead. It has already completed its first layer of filter, and a very good filter I must say.

http://ghchua.blogspot.com/

Hi weijian,

The author of this blog will not be responsible for any financial losses resulting from investing in any of the stock mentioned in it. Also, please take note that it is the personal portfolio of the author, and not any stock recommendations to any individual. Individual using those information must be aware of their own personal risk appetite, investment time horizon and objective. 

[¯|_(ツ)_/¯]

@sifu - I too must confess too 

I read your blog many years ago.  I love your no-non-sense methodology too.  I was rather worried at half point that your health went down and I was equally excited that you managed to climb out of the trench. Thanks God. 

I will skip that part on how I crawl your blogs except that your unique ways of documenting your investment journey really contains a lot of useful details.  For example, at one point in time, I was keen on "Stam ford Land" and done a crawl on your blog.  Based on my crawler, it listed your first buy, all subsequent buy, investment merit, general comments, complaints, ranking (movement) in top 30 based on chronological order.

Since you have such a large portfolio, we do have quite a bit of common stocks than the portfolio of other bloggers (who shared openly).

It's a pity that MMH is (or was) always not cheap and you din't managed to collect more.

As for iFAST, I sold out too early and missed the 10x gain.

Thank you very much for your kind sharing and best wishes to a fruitful investment journey too. 

Gratitude!
 
 

[weijian]

hi ghchua,

I have a confession to make. I have been going through the list of stocks over here instead. It has already completed its first layer of filter, and a very good filter I must say.

http://ghchua.blogspot.com/

Hi weijian,

The author of this blog will not be responsible for any financial losses resulting from investing in any of the stock mentioned in it. Also, please take note that it is the personal portfolio of the author, and not any stock recommendations to any individual. Individual using those information must be aware of their own personal risk appetite, investment time horizon and objective. 

hi ghchua,

Since the author of this blog will not share in any financial gains, it will not be liable for any losses too. Since day1, I have always construed that the author is talking to himself and not giving any advice. 

[i4value]

Just want to check. In Malaysia, you have to be registered with the Securities Commission to be able to give financial advise. I presume that it is the same in Singapore. So VB is a platform to swap war stories and not about recommending which stock or any stock price. Isn't this clear to everyone?

[ghchua]

Just want to check. In Malaysia, you have to be registered with the Securities Commission to be able to give financial advise. I presume that it is the same in Singapore. So VB is a platform to swap war stories and not about recommending which stock or any stock price. Isn't this clear to everyone?

Yes. In Singapore, you need a license as well to dish out financial advise and stock recommendations.

[i4value]

With the proliferation of investing blogs and investing forums-chat sites, I think the authorities will have to rethink this "financial advice" thing. I can't imagine how the authorities are going to control this when AI starts to dish out financial advise.