OKS publishes book on top 50 small caps in Malaysia, Singapore and Indonesia.

For more, check out Malaysian Insider's coverage here:

http://www.themalaysianinsider.com/business/article/osk-takes-small-cap-jewels-franchise-regional/

MEGB is also listed there a pick along with HELP international.

Sales here I come...!

Dear all,

Been busy lately with my new job which basically deals with sales... but the good news is that I've been reading alot of sales book and I would love to share what I have learnt and review these books too.

Of course, if you have any great books to recommend, let me know too!

So, watch this space!

Best regards,
Joe Cashflow.

Short review on Little Book of Sideways Investing

Dear all,

Sorry for the long hiatus! Back and recharged!

Yesterday, read the "Little Book of Sideways Investing" by Vitaly Katsenelson.

His Website can be found here: http://contrarianedge.com/book/

Basically, the investment thesis is to actively value invest looking for shares that fit all 3 criteria - Q for Quality, V for Value and G for growth. (Q+V+G). Once you find these, get them with a margin of safety and when they hit their value, that's when you sell.

What I also found interesting what his macroeconomic analysis for Japan, US and China dubbing them as Grey Swans. Grey swans are different in the sense that they are high impact, rare but predictable as opposed to Black swans.

He also warns of Axioms (defined as self-evident truth that require no proof) based on previous data. Such examples of axioms is China's growth and housing prices. We as humans are quick to draw conclusions based on say 20 years data because we deem it as pattern but sometimes we get the cause and effect wrong. In other words, the past does not necessarily equal to the present.

It was a thoroughly good read and I highly recommend it. He incorporates most of Buffet's principles but his time frame is a 5 years time one. For the exact methodology, you gotta check the book out yourself! Look out for the 'parable' of the cow farmer! It is quite a deep look into things but he does try his best to keep things simple and easy to grasp by having as few formulas as possible.

Personally, its a good refresher on Buffet's principles and provides more practical ways to actually implement those principles. A good edition to the little book of Investing series IMHO.

Away for the next two weeks...

Normal service to continue in mid April-ish

Dear readers,

With the impending Sarawak Elections, I have decided to go back and help out by volunteering to be an independent observer and attempt to be a "missionary of democracy". What better way to advocate for more transparent and free government than to actually go down to the ground, no?

But no fear, reader. I leave you with a few articles about the sage of Omaha for reading pleasure and the Rajaratnam Saga. These are interesting case studies for ethical investing...

Please do check back when I get back.

Until then take care and invest rationally and patiently!

Further reading:

http://www.fool.com/investing/international/2011/03/31/buffetts-bet-on-india.aspx

http://www.fool.com/investing/general/2011/04/04/advice-for-david-sokol-by-david-sokol.aspx - Heir apparent leaves for failing the "New York Times Test"?

The Rajaratnam saga or also known as the case not to commit insider trading:

WSJ article - http://online.wsj.com/article/SB126204917965408363.html - the whole web of insider trading

http://www.themalaysianinsider.com/business/article/mckinsey-in-uncomfortable-rajaratnam-trial-glare/ - McKinsey dragged into the mud

When is Enough - http://www.fool.com/investing/general/2011/03/04/when-rich-people-do-stupid-things.aspx?source=isesitlnk0000001&mrr=0.13

MEGB update no. 2

Is MEGB marching into the light with its newly approved programmes?

(credit: Dreamstime)

Since my last post on MEGB more than a month back, a lot has happened.

A Concerned Investor sends in some queries to MEGB's Investor Relations (IR) Another concerned MEGB shareholder, Zuuk has been sharing some info with me via email and these were his concerns:

1) An updated list of the shareholders - this was updated on 9.03.2011 - which shows that Fidelity and Smallcap World Fund were still shareholders to a total of 8.5%. But of course, this was 3 weeks ago and the composition may have changed and we can only wait and find out whether they have further shed their ownership of Masterskill's shares.

2) Zuuk also had concerns as MEGB's bursa announcement that it had obtained approval from the Education Ministry to run its Kuching campus which conflicted with the Kenanga report on MEGB saying that the Diploma in Nursing for Kuching was facing some delay in obtaining approval. Management's reply to this was that the two things are not the same thing as the former as to do with the campus and the latter with the programme. Hence, they were not conflicting. Nevertheless, good on Zuuk for spotting these things and being an active investor and of course, sharing this info with us

Catalysts for Higher Prices? MEGB now has hit around the average price I bought it - RM1.9 and the fact it has been in the news may have something to do with it:

March 23 - Approval for its Cheras Campus to conduct BSC (hons) Nursing programme - This is obviously good news as well, if all goes well, a recognised certificate is almost as good as printing money.

March 29 - Masterskill then announced it was to collobarate with Kinta Medical Centre to set up a physiotherapy centre - This again is a plus as it states that KMC will bear the costs and share the profits with Masterskill and this may give Masterskill the 'unique selling point' it needs to get more students into Masterskill as the healthcare education industry gets more crowded with more players entering into this space.

What about Dividends? Share Buy Back? Of course the two pieces of news I cannot wait for is the share buyback and the payout of dividends.

And guess what - they recommend a dividends payout of 7.9 cents per share payable on 15 June so if my maths is right - a 4.1% return for the shares at the price of RM1.89 (closing price today). Read about it on the Edge.

Yet, when I think about it, can MEGB afford to also do a share buyback? Can they fund both while expanding aggresively as they are opening its new campuses or do they have to settle for one option? To me, I would prefer a dividends payout as I am holding long on to MEGB. Perhaps, it's time to write into their IR to find out...

Update 31/03 : OSK research maintains MEGB as a trading buy with unchanged fair value of RM 3.44 citing the current PER at 6.4 the cheapest in its covergae. Read it on the Edge.

Full disclosure: Yes, I do have shares in MEGB.