5 Years of Reflection

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#21
Rainbow 
Thank you blue00 for your prompt reply.
It's my lucky day.

MM is a penny stocks (at least many people still remembered that it used to be a penny stock).
It ballooned to become my number #1 holding not because I kept buying,
but rather it's price kept going up and up.

It's definitely over-value by all valuation methods.
I really hope that it could make it (lots of hope and lucks):
[Image: Intrinsic-Value.gif]

I hold it for about 5 years.
First batch was purchase in 2012 (after NDP) range 40-41 cents.
About 30% of my current MM shares.

That was the time when MM is a boring stocks, low return, high P/E and it has been priced in.

Like what you wrote,
Quality
MM possesses strong quality in term of strong competitive advantage and economic durability.
Even at a higher P/E, these qualities ensure there's a high probability that the value of MM will continue to increase over the long term.

Investment process
A lot of value buddies had put MM was under rigorous investment process. 
They had created expected return models, DCF, checklists, multiple mental models and looking for contradictory informations.
They are really legendary value buddies and each carry a lot of substance under their belt.
For those who is very curious, you can learn from their wisdom easily by google "micro mechanics blog".

Management
BOD - Rabia, Girija Pande, 
Executives -  Chris, Low Ming Wah and Chow Kam Wing 
These are prudent management that aligned their interest with the shareholders.
MM is well run by able people who possess strong integrity.
What a good feeling sleep soundly every night knowing that a team of hardworking people operating at the peak 24x7 365 days.

Leverage
MM maintain debt-free since the beginning - precisely like what you says - more room to maneuver especially critical during an economic downturn.  
MM operates very light with sensible capex (for expansion/growth).
During the current bull run, it's profit is closed to 60%.
Management KPI is > 50%.
BTW, not only MM is debt-free, it choose to buy it's factory instead of renting to be flexible during economy downturn too.

Industry economics
Although MM does not serve consumer or healthcare,
Although MM operates in cyclical climate, 
MM's products are actually consumable for it's customers.
Customers repeatedly purchase MM's products as it gets wore out fast.


Finally, my 2nd questions (again, I feel that I'm very lucky to be able to hear your view)
Q2: should I buy more?
感恩 26 April 2019 Straco AGM ppt  https://valuebuddies.com/thread-2915-pos...#pid152450
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#22
Just curious, care to share who are the really legendary value buddies? ...
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#23
Rainbow 
@blue00 - I think I got the answer. It's a definite buy!
@holymage,
I need to be discrete as I imagine that most valuebuddies wanted to be kept under radar.
If you are frequent visitor to valuebuddies.com, 
you'll noticed a striking contract pre-2015 and today.

I had increased my posts in vb.com especially in travel forum in an attempt to revive the interest here.
From the number of posts (which I actually monitor manually in excel spreadsheet),
I know that most of these travel posts were read.

However, no many posts coming and I thought of sharing my views on some stocks which I am vested.
It's just sharing my personal view as I'm still learning.

With the intentions of keeping vb.com readerships
and hope that our sifu can share their knowledge and wisdom (which they had done so and until now I'm still benefited a lot from their posts - thou they might not realised it).

I guess, I had overdone and hence the toning down of my posts.

In any case, if you're really keen, just flip thru some of the top posts in vb.com and you should find them.



Enjoy the greatest showman!
Q: are you vested in MM?
感恩 26 April 2019 Straco AGM ppt  https://valuebuddies.com/thread-2915-pos...#pid152450
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