T.U.B Investing

This post is a reminder for myself of why I invested in the above company. I am vested and comments maybe biased. Numbers/Finance Increasing Revenue, Net Profit, Dividend – Over the last five years, the total revenue has just been increasing. Although you can’t say the same for net profit, but on an overall basis, it has also been increasing. As for the dividend, it has also been increasing. Love it (Remember this trend and it will be explain further in the catalyst) . Source: FY2018 10-K Improving Balance Sheet – Balance sheet has been improving with the rise in total asset along with the rise in Book Value. ROE, Long Term Debt, Combined Ratio – Return on equity has dropped, but it has maintained at 20+%. But this ROE comes along with low Long Term Debt (Hint!) . In addition, just looked at the returns of UVE vs competitors. Furthermore, Combined Ratio* continued to remain below 100%. *As per Investopedia, “The combined ratio is a quick and simple way to mea...

This post is a reminder for myself of why I invested in the above company. I am vested and comments maybe biased. Numbers/Finance Amazing Returns in 2017 and 2018 – ROA are more than 45% and ROE are more than 65%! In addition, no comparison among competitors in terms of returns based on 2018 figures: Feiyu Technology International Co Ltd (1022) - Loss making Zynga Inc (ZNGA) - Loss making Ourpalm (300315) - Loss making Linekong Interactive Group Co Ltd (8267) - Loss making Netmarble Games Corp (251270) - Super high PE + Low ROE/ROA Colopl Inc (3668) - Super high PE + Low ROE/ROA Digital Hollywood Interactive Ltd (2022) - Super high PE + Low ROE/ROA NetDragon Websoft Inc (0777) - high PE + lower ROE/ROA Boyaa Interactive International Ltd (0434) - Low ROE/ROA FingerTango Inc (6860) - Listed 2 years… reasonable ROE/ROA iDreamSky Technology Holdings Ltd (1119) - Listed 2 years… reasonable ROE/ROA Zengame Technology Holding Ltd (2660) - Listing less than 1 year NCsoft ...

This post is a reminder for myself of why I invested in the above company. I am vested and comments maybe biased. Numbers/Finance Growing Revenue, Net Profit, Cash from Ops, with consistent FCF generated – A business taking on market share and continuously generating FCF. No more debts – A growing business allows the company to reduce its debts. Currently it do not have any debts. Thus, there will be significant interest saving moving forward. US$6.5 million of interest expense is paid in FY2018. DCF calculation – I have a weird way of doing DCF (high discount rate of 15% to 30%) with 0 growth based on the past 5 years of FCF. This DCF allows me to come up with a $19.77. But what happens if 1% of growth occurred and a more regular discount rate of 10% is taken into effect. Reasonable Ratios - PE stands at 13.15 and PFCF stand at 7.94. This doesn’t shout value. But they are reasonable comparing to other Fintech out there which is still burning cash. (I compare with Fintech beca...

In the world of investing, there are numerous Gurus which came up with different theories that allowed them to make significant gains over the super long term. Many of us tried very hard to mimic these theories in real life and we gave up half way. There are many reasons why we gave up: 1. We cannot wait so long. 2. My holding power is not as long as theirs. 3. We are in a growth stage. 4. Recession is coming. 5. We are not them. and many more... In my opinion, whoever follows these timeless theories must understand the following 3 points:  (1) the main gist of the theory:  For example, Ben Graham theories requires you to understand liquidation value, while Warren Buffett/Charlie Mungar requires you to understand competitive edge. (2) the theory behind long term holdings: Long term holdings doesn't really mean buy and hold forever. If there are negative fundamental changes, we should be quick to sell those holdings. In my view, long term holdings meant ...