tag:blogger.com,1999:blog-6799517749463638949.post7894572598888751527..comments2023-12-21T18:16:49.762+08:00Comments on Businessman Investor: Republic Cement as an Equity Bond with an Expanding CouponBusinessman Investorhttp://www.blogger.com/profile/04879357550215159500noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-6799517749463638949.post-13338211670167103402022-02-01T18:10:48.119+08:002022-02-01T18:10:48.119+08:00There are various sorts of equity subsidizes each ...There are various sorts of equity subsidizes each falling into various danger section. In the request for diminishing danger level, there are following sorts of equity reserves: <a href="https://www.finance-hub.co.uk/birmingham-midshires" rel="nofollow">Finance Hub Wandsworth Birmingham Midshires</a><br />sevouhttps://www.blogger.com/profile/15858008368389849638noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-87074287405769014862022-01-03T17:07:03.765+08:002022-01-03T17:07:03.765+08:00I truly appreciate this blog. Thanks Again. Keep w...I truly appreciate this blog. Thanks Again. Keep writing.<br /><a href="https://coastplastering.com.au/" rel="nofollow">Coast Plastering</a><br />Sheefa Khanhttps://www.blogger.com/profile/07309306862080135166noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-45791941604132941672021-11-24T11:13:04.370+08:002021-11-24T11:13:04.370+08:00This is an excellent post I seen thanks to share i...This is an excellent post I seen thanks to share it. It is really what I wanted to see hope in future you will continue for sharing such a excellent post. <a href="https://www.deccanchronicle.com/in-focus/101121/unlock-the-benefits-of-bybit-referral-code-and-start-trading-now.html" rel="nofollow">bybit referral code</a><br />erumhttps://www.blogger.com/profile/11247307671477184726noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-18768639938290876702020-11-28T16:13:02.176+08:002020-11-28T16:13:02.176+08:00Whether you have a big house or a small one, it mu...Whether you have a big house or a small one, it must have flat and smooth walls and roofs. Therefore, it's an absolute necessity for property owners to appoint the services of professional plastering contractors. <a href="https://www.proplasteringhobart.com/" rel="nofollow">plasterboard installation hobart</a>Davidhttps://www.blogger.com/profile/05883216921001046120noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-60496390220515855742020-05-21T20:21:08.626+08:002020-05-21T20:21:08.626+08:00Thanks for the valuable information and insights y...Thanks for the valuable information and insights you have so provided here... <a href="https://sites.google.com/site/namshtocoupon" rel="nofollow">كود خصم نمشي</a><br />uk seo companyhttps://www.blogger.com/profile/06535467841738597989noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-80331672030331952182011-12-16T12:43:15.567+08:002011-12-16T12:43:15.567+08:00"I've read somewhere that for use to arri..."I've read somewhere that for use to arrive or at least have an idea of "maintenance capex", we just have to look at depreciation... "<br /><br />Looking only at depreciation expense would ignore future spending on fixed assets.<br /><br />In my opinion, knowing the management's business plan (might be specified in the sec 17-A filings), industry and regulatory factors would be a great help.Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-83296415894327706832011-09-30T16:11:25.289+08:002011-09-30T16:11:25.289+08:00Checked out OV. Initially, 2010 results looks prom...Checked out OV. Initially, 2010 results looks promising, but still has a lot to prove (prior years have measly returns). If it's able to maintain 2010 profits (and cash flow) for the succeeding years, then we're anticipating around 15% just in perpetuity return--that is not counting prospects for growth. With P/E ratio currently standing at 6.33x, earnings yield is 15.80% (i.e. 1/6.33)<br /><br />With regards to weeding out unusual cash from investing, these abnormalities can usually be attributed to "capital expenditures used for growth" OR "proceeds from sale of major PP&E assets". I have to concede I don't have an exact, almost automated method in going about this, but it helps sifting through the notes to FS. I've read somewhere that for use to arrive or at least have an idea of "maintenance capex", we just have to look at depreciation... <br /><br />I still tend to raise an eyebrow on this approach, however. Tips from you or anyone, perhaps? Would appreciate it =DBusinessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-40756370992758982882011-09-29T10:01:54.157+08:002011-09-29T10:01:54.157+08:00I'm on real estate. I'm bullish on Philipp...I'm on real estate. I'm bullish on Philippine tourism.^_^<br /><br />Have you studied the oil company OV? I think it fits all your criteria in selecting a stock. They just started commercial operation in mid 2009.<br /><br />Regarding DCF, how do you weed out the unusual cash flows in investing?Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-24744477094137725172011-09-29T08:53:42.075+08:002011-09-29T08:53:42.075+08:00I'm on real estate. I am optimistic in the Phi...I'm on real estate. I am optimistic in the Philippines' tourism industry.^_^<br /><br />Regarding DCF, how do you weed out abnormal transactions in cash flow from investments?Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-70644192802679634232011-09-28T21:18:34.121+08:002011-09-28T21:18:34.121+08:00"Why not assume a conservative price and fore..."Why not assume a conservative price and forex rate for the metals in the calculation?" I think that's an excellent MOS assumption! =D<br /><br />I have school, cement, media, beverage, greenergy, real estate, etc. you?Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-48589542690928974032011-09-28T14:29:46.521+08:002011-09-28T14:29:46.521+08:00Why not assume a conservative price and forex rate...Why not assume a conservative price and forex rate for the metals in the calculation?<br /><br />What industries do you like and have investments in?Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-57057915751599969282011-09-28T13:20:47.154+08:002011-09-28T13:20:47.154+08:00At first thought, I'd say yes. Because compare...At first thought, I'd say yes. Because compared to banks/financials or real estate companies--whose underlying value cannot be easily determined by looking at free cash flow; net asset value or book value measures maybe more appropriate (but I'd appreciate if someone can further enlighten me on this)--the value of mining businesses is only worth the cash they generate.<br /><br />Then again, the speculative nature of the prices of the metals they produce (such as gold, silver, copper, etc.) subjects them to even more uncertainties. It's really hard to predict unless the metal's intrinsic value do have productive utility or function (that way, demand for them would have a stabilizing effect)--and that's gonna mitigate (or somehow stabilize) the fluctuations in their prices. What do you think?Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-84923055417417350332011-09-28T13:08:49.840+08:002011-09-28T13:08:49.840+08:00I'm not that familiar with the industry.:)
Do...I'm not that familiar with the industry.:)<br /><br />Do you think DCF can be applied in mining stocks?Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-52730224529777557832011-09-28T12:36:48.983+08:002011-09-28T12:36:48.983+08:00Nope, haven't. you?Nope, haven't. you?Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-33901046019298750822011-09-28T10:46:48.779+08:002011-09-28T10:46:48.779+08:00Have you bought any mining stocks?Have you bought any mining stocks?Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-7112531151954802312011-09-27T15:06:32.882+08:002011-09-27T15:06:32.882+08:00You're always welcome Renzie! =D I appreciate ...You're always welcome Renzie! =D I appreciate your comments and thoughts as well. Always do drop by and leave something! hehehe, Thanks!Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-55405330576820980562011-09-27T14:53:17.467+08:002011-09-27T14:53:17.467+08:00Thank you for sharing your thoughts.:)Thank you for sharing your thoughts.:)Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-7612678955532197962011-09-27T14:35:29.597+08:002011-09-27T14:35:29.597+08:00Regarding sold assets: True, true. That's why ...Regarding sold assets: True, true. That's why abnormal, extraordinary transactions such as that has to be weed out. And that's also why the comparison between net income and free cash flow (and I think that also somewhat tempers the effects of huge current liabilities incurred.)Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-3521688582376404902011-09-27T14:28:37.529+08:002011-09-27T14:28:37.529+08:00"Cash flows from investing activities are not..."Cash flows from investing activities are not cash generated in the normal course of business..." I'm actually more particular with just capital expenditures. Because no matter how much cash a business can generate from its operations, if all or most of these are just ploughed back to depreciable fixed assets to maintain operations, what does that leave the shareholders?<br /><br />"Cash flows resulting from changes in working capital is just a timing difference" The timing factor is precisely why I consider it.<br /><br />"... I too don't use NOPAT in my valuations.:)" Which do you prefer and use?Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-68442685189472974472011-09-27T14:20:02.829+08:002011-09-27T14:20:02.829+08:00It's a good thing that RCM did not sold any hu...It's a good thing that RCM did not sold any huge investments in the past years or you would find yourself a huge FCF to base your assumptions with.<br /><br />Huge current liabilities incurred can also distort the FCF calculation.:)Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-35234002205152288332011-09-27T14:14:32.068+08:002011-09-27T14:14:32.068+08:00*margin for error.hehehe
Stern Stewart & Co&#...*margin for error.hehehe<br /><br />Stern Stewart & Co's NOPAT is not used for DCF calculations. Its for economic value added (EVA) calculations.<br /><br />I was suggesting you use NOPAT for your yield instead of FCF.:)<br /><br />"We then arrive at a safe free cash flow yield of 12.47% (Php4B/32.07B)"<br /><br />Their argument is that NOPAT is the actual cash that shareholders receive in the normal course of business. Cash flows from investing activities are not cash generated in the normal course of business and cash flows resulting from changes in working capital is just a timing difference.<br /><br />Its not really a big difference. I too don't use NOPAT in my valuations.:)Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-53059936919028654012011-09-27T13:52:25.156+08:002011-09-27T13:52:25.156+08:00hey, huge margin OF error OR huge margin FOR error...hey, huge margin OF error OR huge margin FOR error? hehehe =P<br /><br />But let me ask: why would you want to discount/disregard changes in working capital AND capital expenditures? Don't you think that's a lot of disregard with respect to the principle of the time value of money?Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-76707572123011453332011-09-27T13:48:12.278+08:002011-09-27T13:48:12.278+08:00Yup. You have a HUGE margin of error in your calcu...Yup. You have a HUGE margin of error in your calculations.:)<br /><br />The NOPAT formula that I gave you was from Stern Stewart & Co's book. They are an advocate of cash basis accounting.Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-1878513228871872302011-09-27T13:41:28.406+08:002011-09-27T13:41:28.406+08:00Well I guess that can also be used. It's a mat...Well I guess that can also be used. It's a matter of preference.<br /><br />Time-value-of-money-wise, though, receivables just collected is as valuable as cash profits (likewise, sales made on credit doesn't have any value, cash-wise). So I have more inclination towards using Operating Cash Flow less Capital Expenditures (i.e. Free Cash Flow). After all, changes in working capital has a lot of bearing on cash value; the same thing actual, out-of-the-pocket capital outlays.<br /><br />Anyhow, valuation-wise, our assumed Php4B above is still way below the 5,917m NOPAT, so margin of safety is well maintained.Businessman Investorhttps://www.blogger.com/profile/04879357550215159500noreply@blogger.comtag:blogger.com,1999:blog-6799517749463638949.post-67669250656313482292011-09-27T13:13:42.125+08:002011-09-27T13:13:42.125+08:00NOPAT is simply operating cash flows before workin...NOPAT is simply operating cash flows before working capital changes net of tax.<br /><br />In regards with RCM:<br />Cash flows before working capital changes 7,704<br />Less: income tax paid 1,787<br />NOPAT 5,917<br /><br />Its basically converting net income from accrual basis to cash basis.:)Renzie Doemhttps://www.blogger.com/profile/05373801914422796896noreply@blogger.com