After reading the book "Market Masters" a few times, there are at least 2 "Masters" that swear by free cash flow yield. In fact, they both mentioned 8- 10% yield as a very attractive proposition.
Hence, I did a scan of all the companies in my portfolio, excluding the reits and financial companies, and discovered several such companies. I calculated FCF yield by using 5 years average OCF minus 5 year average PPE minus 5 year Purchase of Business (If regular and significant), then divide by number of shares and then finally the price. Data drawn from FSM Screener. I gave Sembcorp Industries a miss, since it is considered a "new" business after demerger and Keppel, because its number are too volatile, for the numbers to be meaningful.
They are:
1) Lung Kee (HK 0255) (15%)
2)Yangzijiang (13%)
3) Lonking (HK3339) (13%)
4) *Diary Farm International (13%)
Closely followed by Silverlake Axis and Singpost in the 8-9 % range.
Do note that Diary farm has a debt to equity ratio of 3, according to the website.
Surprisingly, favourites like ST engineering and SATS, are having yield of 2.3-2.5%.
Looking at the small sample of counters I have, it seems obvious that not all sectors yield such high FCF. Manufacturing seem to be a good place to look.
Also, I believe valuation is due to a lot of factors, including potential for growth in the next 2-3 years. Or rather, the potential to exceed growth expectations. I am currently finalizing the qualitative part of my screen by giving it a score, beyond quantity numbers like FCF yield. Will share more later.
Also, the FCF yield is taken with current ratio and debt to equity ratio, and the 2 companies that stand out are Lung Kee (Current ratio >4 and debt to equity ratio below 0.1) and YZJ (Current ratio >3 and debt to equity ratio below 0.2)
YZJ has HTM business. I did send an email asking what impact if any on the recent regulation on Fintech and Shadow Banking in china has on their HTM busines. But I receive no reply. Nonetheless, I do owned YZJ Shares.
Some Companies that are recently listed like Koufu, are not calculated as the Integrated Facility increase Capex but is not reflective on it recurring Capex, and for Singpost, I only used 3 years average, not including the years when they are building SIngpost Center
Hi SI,
ReplyDeleteIf you look closely, I think HK has a lot of companies in high yield range. How about CNOOC?
Hi bro Rolf
ReplyDeleteI did look at it. I can't remember the numbers. But I look at them together with sinopec and the likes when u introduce them and I finalize with getting sinopec. :) Thanks to your recommendation.
I saw many j like in HK. But j need to hold my fire.
I am left with only 15 percent liquid cash and there are a few I quite like
Do you need to increase your credit score?
ReplyDeleteDo you intend to upgrade your school grade?
Do you want to hack your cheating spouse Email, whatsapp, Facebook, instagram or any social network?
Do you need any information concerning any database.
Do you need to retrieve deleted files?
Do you need to clear your criminal records or DMV?
Do you want to remove any site or link from any blog?
you should contact this hacker, he is reliable and good at the hack jobs..
contact : cybergoldenhacker at gmail dot com
HOW TO RECOVER LOST USDT/BITCOIN FROM FOREX INVESTMENT SCAM ?
ReplyDeleteWe understand that losing access to your cryptocurrency wallet or funds can be a stressful and overwhelming experience. During times like these, it’s important to proceed with caution and seek help only through trusted and legitimate channels. Attempting to recover your assets through unauthorized or illegal means—such as hacking—can put your personal information and remaining funds at even greater risk.
If you’ve lost access to your wallet or Bitcoin, your first step should be to contact the official support team of the cryptocurrency exchange or platform you originally used. In many cases, they may be able to help you regain access or guide you through their account recovery process.
It’s also wise to report the incident to the appropriate authorities. For additional support, you may consider reaching out to cybersecurity professionals who specialize in blockchain and crypto asset recovery. One such resource is Decentralized Codex Security, a firm that assists individuals in navigating these complex situations while helping to prevent further losses and protect against fraud.
For legitimate assistance, you can contact them at:
consult@decentralizedcodexsecurity.com
decentralizedcodexsecurity.com
Stay informed, stay secure, and always verify before you trust.