Case Study: Calculated Value for Wellcall (For Illustration Purpose Only)

A month ago, there was a reader asking me on how to utilize the my method on calculating the value of Mah Sing Group or Wellcall.

As my method of calculation involves in Cash Flow from Operation, after studying the cash flow statement of respective company, I realized the inconsistency of Mah Sing's cash flow from operation.  In particular, Mah Sing's recent financial statement shows negative cash flow which has make the calculation impossible.  Therefore, I decided to use Wellcall as an example.

Source of Financial Information for Public Listed Companies

When talking my Process #1 in "Infinite Wealth" on identifying good quality counters, a number of my readers are asking about where to get the historical prices for public listed companies.  Well, there are some web pages who are providing the required information for free while others might need you to pay to get it.  Here, I would like to share some web sites that I have been using for my stock investment analysis.

What Should Be the Stock Investment Strategy Now?

Greeting to all my readers.

I know some of you might wonder what I have been doing for all these while.  Well, I am preparing my second book and it is expected to be released by 1st quarter of 2013.  My second book will share more information on investment and financial planning.  The aim of this book is to show you how to enjoy your life without worrying money.  I will keep you informed via my blog for the release of my 2nd book.

Since the release of my first book, "Infinite Wealth", I have been receiving a number of positive feedback from my readers.  Taking this opportunity, I would like to thank all my readers for your support and I will strive my best to share my experience to benefit those who need it.

With the above mentioned mission in mind, for this post, I would like to share some of my thoughts on what should be the current stock investment strategy.

My Reading List in 2011

Today is the last day of 2011.  To me, it has been a busy year.  I traveled extensively to various countries in Northeast Asia for meetings as well as to visit my customers and suppliers.  I also launch my first Chinese book, "无限的财富" in November.  Thanks to all my readers.

Despite of busy schedule, I never forget to read.  I normally read books 1 hour before bed time and, by doing so, it really creates a peace of mind to me after a day of hard work.  Here, I would like to share with my fellow readers about what I have been reading in 2011:

无限的财富

自英语版“无限的财富“出版以来，我收到广大的读者们的热烈反馈。非常感谢大家的支持。为了能让更多的读者受益，“无限的财富”中文版也已出版。现已在各大书局出售。

为了能更好的反映当下的市场情况，我在中文版里添加了不少资讯及投资技巧。欢迎读者们进行讨论及分享。

期待你们的回馈。

谢谢！

Goodwill in Balance Sheet

We always see the term "GOODWILL" appears in companies' balance sheet.  So, what is a goodwill?  According to oxforddictionaries.com, goodwill is "the established reputation of a business regarded as a quantifiable asset and calculated as part of its value when it is sold".  Sound hard to understand?  Well, in a layman term, it means a company is sold to a buyer company at a higher price than its NAV.  The difference between the higher buying price and the lower NAV will be shown in buyer company's balance sheet as goodwill.

How Do You Control Your Spending?

It has been again a long time for me to update my blog and I would like to sincerely thank to my loyal readers.  I will strive my best to update and share more frequent to share my view and thoughts on investment and financial planning.

Few days ago, when I was making a coffee during my short 5-minute tea break, I had a brief chat with my colleagues.  They were asking me how much do I normally spend on my meal.  I replied that I spend about $4~$5 for a dinner for my family and they shocked.  They felt incredible and said I was lying because they normally spend at least $6 for dinner alone.  I informed them that is what people do normally without second thought.  If you follow the crowds, you will end up the same as what the crowds are doing.  

Best Stock Investment Timing

Many readers of my book are asking me whether it is time for them to invest in stock market NOW.  When I am writing this article, FBMKLCI is standing at historical 1,583 points.  I can't really judge how high will the market go from this point.  Economy uncertainty in the US and Europe makes me more worry about the sustainability of the historical breakthrough.  May be I am wrong but I still believe the best timing for stock investment is when everyone is selling.