2. The management is set to increase its production capacity by around 35% in 2007 and right now the production is run at about its full capacity which quite encouraging. People who are new to trading should set their stop-loss order for ten percent below the price they paid, simply because this prevents last second ’emotional’ making decisions. KB Laminate’s performance in 2006 is good and I still recommend this the boutique as my recommendation of 2007. Many people have been very disappointed with the share performance of this company and it is time for the management to be more focused on increasing shareholders equity at a higher rate and decrease the high debt to equity ratio in order to maximize the interest of shareholders. A blog to share opinions in Hong Kong stock market and detailed discussion of value investing strategy. Therefore, investors should at least have a basic idea of the company before investing money in it.
By investing in a variety of individual companies as well as general stock, you’ll likely see more of a return than any other form of investment. The company should be more focused on increasing the shareholders equity. Without such loan, the debt to equity ratio of the company is only 36.7% which is much more healthy. But the stock pays a good dividend, worth more than $7 a year and amounting to a 3% yield. Normally the prospectus is available online through the websites of stock exchange. Anyway, I would like to share some brief reading skills of prospectus here. The management’s action of getting loans after the IPO is clearly to avoid the dilution of share interest of major shareholders for giving up too many shares during the IPO and KB Laminate after IPO is a company which can get loans from the bank more easier. However, if the management continued with the mindset (which is common within many major shareholders of Hong Kong listed comanies) of getting easy money from loans through a better company, the company will be harmed finally. Remember earning money is very difficult and losing money is very easy. In fact, if it gets big enough, Yahoo may be forced to monetize the gap, i.e., sell its holdings in Yahoo Japan and Alibaba, pay the taxes, and still have money left over for its stockholders.
One of our reader has raised a question about which key factors of the listed prospectus of IPOs investors should pay attention to. You will find your needed prospectus. One of our blog reader asks about where to find the prospectus of Hong Kong stocks. In actual sitautions, it is very difficult to use one single method to analyse different companies because different companies and industries have their own characteristics. As we have strong capital backing we are able to do things properly and take a long term view. You could use derivatives to buy short term insurance against a market collapse but, given that you are not alone in your fears about the market, you will pay a hefty price. 4. Debt to equity ratio is still quite high though it has been dropped from 162.3% of 2005. Such high ratio is due to a 5-year term loan of HK$2.54 billion in December 2006 after the IPO.
In 1978, he wrote an article noting that the Dow had dropped 20 percent in the prior six years, book value had risen 40 percent, and these stocks were earning about 13 percent on book value. The Dow was trading at or below book value for parts of 1979. On 21st December 2001, Warren Buffet wrote another article in Fortune to respond to his previous article. Can better results be obtained, over 20 years, from a group of 9.5 percent bonds of leading American companies maturing in 1999 than from a group of Dow-type equities purchased, in aggregate, around book value and likely to earn, in aggregate, about 13 percent on that book value? It is no doubt that the Kingboard Laminate (1888) is a better performed company than Kingboard Chemical Group (148) as we have predicted before. I have bought the following companies from the market this month – AF Global, Bukit Sembawang Estates, Chuan Hup, ComfortDelgro, Dairy Farm, Heeton, Hiap Hoe, Hong Fok, Hotel Grand Central, Jardine Matheson, Jardine Strategic, Koh Brothers, Lion AsiaPac, Mandarin Oriental, Metro, NSL, OUE, Pacific Century and SingTel.