Shares & Derivatives
Divestment of Tat Hong – Analysis and Lessons Learnt
By Musicwhiz  •  February 18, 2011
My previous post on Tat Hong’s 1H FY 2011 results ended on a pessimistic note, as I had mentioned that I will be keenly monitoring the Company’s 3Q FY 2011 results to review margins, revenues, utilization rates and overall profitability and cash flow generation. Well, the jury is out – Tat Hong released its 3Q FY 2011 financial statements on February 14, 2011; but it was more of a Valentine’s Day nightmare than a gift, for the numbers were quite horrendous by any standards. This post is not just to highlight the numbers and the deterioration of the business, but also serves as a lesson and wake-up call to yours truly (yes, ME) on which companies I should choose to avoid in future when searching for a value investment. Note that this investment in Tat Hong was made back in September 2008, when my criteria for strong Balance Sheets and ......
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By Musicwhiz
Musicwhiz who is in his 30s is educated in accounting and works in the investment line (but not in a bank, financial institution, brokerage or fund house). He has a have a full-time job and investing is his side-line as well as passion. Musicwhiz is a value investor and his technique is derived from the teachings of Warren Buffett, Benjamin Graham and Phil Fisher. He incorporate all aspects of their investing style, and modify his value investing style to the Singapore market.
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