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8I Holdings Limited (ASX:8IH)
12-06-2019, 01:27 PM.
Post: #141
RE: 8I Holdings Limited (ASX:8IH)
(11-06-2019, 09:52 PM)weijian Wrote: Is the market actually undervaluing 8i now?

Based on its financial report ending 31st March, it has NTA of 8.6cts, majority are cash and "investible securities" - But share price was actually 6.2cts (adjusted from 6.5 cts aus) at year closing on the same date. This is almost a 40% discount. This means that Mr Market is actually assigning a negative value to its education and ecosystem business? Mind u, this is a business that cant be replicated easily from scratch n all the business connections n relationships etc..

Assuming the securities are easily liqidated and insiders shd know intimately, wouldnt it be a hidden champion? Smile

Are they frantically buying back their shares at current value?
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“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger

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12-06-2019, 01:28 PM.
Post: #142
RE: 8I Holdings Limited (ASX:8IH)
(11-06-2019, 09:52 PM)weijian Wrote: This means that Mr Market is actually assigning a negative value to its education and ecosystem business?

Yes, I think your observation is correct. The assets on the balance sheet are fairly liquid for the largest part. One could liquidate the assets, terminate all education and other business operations and distribute the net proceeds to the shareholders with a final dividend.

But that is theory. In practice, there is no indication that the board is considering this course of action. On the contrary, they are excited about the prospects of their app Wealthpark and the growth of their activities in Malaysia and other countries.

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12-06-2019, 02:02 PM.
Post: #143
RE: 8I Holdings Limited (ASX:8IH)
Read through their annual report. It looks like their fund is separated into 2 portions, old and new holdings. The old holdings have massive losses and is very illiquid. So i would think if they were to try to liquidate it, the losses will be even larger. New holdings are doing okay and fairly liquid. You should discount the NTA of 8.6cents further based on your best gauge.

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12-06-2019, 02:18 PM.
Post: #144
RE: 8I Holdings Limited (ASX:8IH)
(11-06-2019, 09:52 PM)weijian Wrote: Assuming the securities are easily liqidated and insiders shd know intimately, wouldnt it be a hidden champion? Smile

Their legacy holdings are illiquid, difficult to exit without realizing huge losses....very hidden champion indeed...Guess mr market already priced it in.

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12-06-2019, 06:33 PM. (This post was last modified: 12-06-2019, 06:35 PM by weijian. Edit Reason: update )
Post: #145
RE: 8I Holdings Limited (ASX:8IH)
(12-06-2019, 02:18 PM)mslee888 Wrote:
(11-06-2019, 09:52 PM)weijian Wrote: Assuming the securities are easily liqidated and insiders shd know intimately, wouldnt it be a hidden champion? Smile

Their legacy holdings are illiquid, difficult to exit without realizing huge losses....very hidden champion indeed...Guess mr market already priced it in.

hi mslee88,
i read that in the AR as well. But without an idea what they are, it wouldnt be easy to extend the back of envelope calculation.

@wildreamz, Based on ar19, they did buy back close to 0.3% of their shares at avg cost of ~12cents in that year. Didnt see any more buybacks since then and i thought they should be doing so! (at least based on what they preach)

@jaco, i thought if i were them, i would just simply privatise and enjoy the gains myself!

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15-06-2019, 10:30 AM.
Post: #146
RE: 8I Holdings Limited (ASX:8IH)
Companies with corporate governance issues -- whether real or perceived -- are usually priced as bargains in the market. Kimly is a good example.

Low share price relates to investors' fear. There are many things to be fearful of when investing in companies riddled with CG issues. Least of which are the valuation of items on the balance sheet.

Even if no attempt is made to massage the numbers on financial statements, a questionable operator could make IPT 'expenses' -- and of course not declare them -- which allows earnings to flow out of the company.

My personal rule is not to invest in companies with 'questionable operators.'

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16-06-2019, 11:51 PM. (This post was last modified: 16-06-2019, 11:52 PM by Baldric.)
Post: #147
RE: 8I Holdings Limited (ASX:8IH)
8i operation explained that
 The real danger for course students is not losing a 1 time couple of thousands on instructors.

But the later move where the student place their faith and life long saving money into an instructor is always ready to pump up their garbage and dump it to their hidden champion fund.

And the student pick up the garbage like a gem.

So goes the share from $1 to $0.06.
95% wipe out for student who practice value investing.

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