Investing For Value

Tips E-01: A 1-minute summary of my fundamental analysis of NASDAQ Viant Technology Inc (NASDAQ:DSP)  Investment Thesis Viant’s fixed-cost-heavy model converts modest revenue growth into outsized profitability. The company returned to profitability in 2024, showing how its cost structure creates operating leverage. If management sustains discipline, even moderate growth could generate strong shareholder returns. Main Business Viant operates a demand-side platform powering privacy-first digital advertising across the open web. While it IPOed as an ad software firm in 2021, it has repositioned as a more cloud-based technology platform. Growth Revenue has grown at nearly 18% CAGR since 2018, with a sharp 31% rebound in 2024. This reflects both resilience after a downturn and favourable industry tailwinds. Profitability Cost discipline lowered breakeven and SGA margins, enabling Viant to return to profit in 2024. With fixed costs more than half of its expense base, increment...

Case Notes 46: In this article, I examine how 2 Bursa construction companies have evolved to meet the changing market environment.    

Case Notes 45: In this article, I examine how the Bursa semiconductor sector has performed over the past decade and provide an overview of several key players. I aim to uncover the real story behind the boom - and occasional bust - experienced by these companies.    

Case Notes 44: In this video “Can a downstream focus reverse ASTEEL fortune?” I look at the potential for ASTEEL to turnaround its business.  ASTEEL, a downstream flat steel player in Malaysia, has faced persistent challenges - limited scale, high fixed costs, and mounting interest expenses have kept profitability elusive. Yet, its strong correlation with steel prices suggests potential upside in a cyclical upturn. This video explores whether an optimistic turnaround case offers enough margin of safety to warrant investor attention. For more specific insights on the steel sector, refer to the following: Is CSC Steel one of the better Bursa steel stocks? A tough 12 years for Bursa Malaysia steel companies Is Lysaght a value trap? Is Engtex an investment opportunity? Is Astino a value trap? In my video, I cite the intrinsic value for ASTEEL. Refer to the Valuation Library for details of the valuation. For a visual insight of the business performance and investment risk of...

Case Notes 43: In this article titled "Beyond Boom and Bust: The New Trajectory of Bursa’s Exploration & Production Players in the Oil and Gas industry", I look at how the Bursa E&P sector has performed over the past decade and provide an overview of a number of key players in the sector.

Case Notes 42: In this video "Bursa furniture sector – weathering tariff and seeking growth" I look at the potential impact of the Trump’s tariff on the Bursa furniture sector.     Malaysia’s furniture exporters are under pressure as US tariffs bite. With over 80% of production headed overseas - and some companies relying on the US for more than 90% of revenue - the impact is significant. This video breaks down the sector’s financial health, tariff exposure, and strategic options, focusing on key players like Poh Huat and Lii Hen. Despite current challenges, lower tariffs than Vietnam and China and a stronger USD offer some upside. Watch to see if these companies can adapt—or if deeper shifts are needed. For more specific insights, refer to the following: Which are the better stocks in Bursa Malaysia furniture sector? Is Dominan one of the better Bursa Malaysia stocks? Is FACBIND a value trap? Is LIIHEN one of the better Bursa Malaysia furniture stocks? Is LE...

Case Notes 41: Hidden Value in Motion: Transformation in Malaysia’s Transportation & Heavy Industries Sector.

Case Notes 39: Rethinking Returns: The Quiet Reinvention of Bursa Malaysia’s Snack & Confectionery Sector.  

Case Notes 38: In this video "Crisis in the Bursa Glove Sector?" we explore the challenges faced by the Bursa glove companies.  The Malaysian rubber glove industry has evolved from humble beginnings into a global powerhouse. Its growth is driven by rich natural resources, strategic government support, and the ability of its leading companies to innovate and adapt in a competitive, high-demand market. The industry is almost entirely export-driven.  Post-Covid-19, the glove companies have faced profitability challenges. These were partly due to over-expansion during the Covid-19 years and the decline in demand post-Covid-19. In this video, we dive into the state of Malaysia’s glove industry after the COVID-19 boom. From overcapacity and falling margins to weak returns and modest growth prospects, find out why this once high-flying sector is now facing serious headwinds.  For a visual insight of the business performance and investment risk of the various compani...

Case Notes 35. Malaysian Poultry Industry: The untold story of boom, bust, and recovery! The data are meant to serve as base rates when analysing poultry and egg companies

Case Notes 37: In this video "Will Aumas Keep Soaring with Gold Prices?" we explore the business prospects of the company. Over the past decade, Aumas has transformed from an aquaculture company into a gold mining one. The Group only has about 4 years history as a gold mining company. Its performance benefited from rising gold prices. Notwithstanding this, there are several growth paths ranging from new production facilities to improving efficiencies.  However, my valuation did not show any margin of safety. Refer to the Valuation Library for details of the valuation.  Aumas is a compelling investment due to high gold prices, its strong balance sheet, and its expansion plans. But sustainability of profit growth remains a key risk factor. There is also no margin of safety currently. For a visual insight of the business performance and investment risk, download the Fundamental Mapper in the Xifu app here. END

Case Notes 36: In this video " Press Metal - right strategies or lucky tailwinds?" we explore the reasons for the improved performance.   Press Metal Aluminium is the largest integrated aluminium producer in Southeast Asia. Over the past few years, the company delivered better performance by improving cost efficiencies and expanding into new high-growth markets. However, its performance trends also coincided with the uptrend in the aluminium price cycle.  Is the company’s growth primarily driven by operational improvements, or is it largely influenced by rising aluminium prices?  Download the Fundamental Mapper in the Xifu app here . END

Case Notes 34. This article focuses on 3 issues when assessing Bursa property companies - cyclical performance, status of the development pipeline and estimates of the RNAV. 

Case Notes 25. Traders generally rely on price action to identify stocks to trade. The article makes the case that fundamental analysis can be a useful tool in the traders’ toolkits. Revision date: 17 Dec 2023  

Case Notes 01: This post has been updated to cover what you need to learn in the context of value investing and the role of case studies. Note that there is a PowerPoint presentation of this article under " Learn how to invest using investment case studies ". Revision date: 10 Dec 2023

Fundamentals 27. This is an update of my approach to mitigating risk from a permanent loss of capital perspective. It pulls together the threads from my various risk articles. If you have gone to them, you would be re-directed here. 

Case Notes 26. This article explores whether there are Bursa Malaysia gold proxies. It also considers whether an investor would be better off investing in a Bursa Malaysia gold proxy rather than gold. Revision date: 24 Sep 2023.  

Case Notes 12.  I originally wrote this article to cover 2013 to 2020. I have now updated this to 2022. It covered the performance of the companies under the Bursa Malaysia plantation sector. The data are meant to serve as base rates when analyzing plantation companies. Revision date: 10 Sep 2023  

Case Notes 03:  Comparing the returns from investing in residential properties in Malaysia with those from investing in Bursa Malaysia. Revision date: 3 Sep 2023

Case Notes 14.  This article tracked the 2009 to 2020 performance of the companies under the Bursa Malaysia iron and steel sector. It provides a picture of the steel industry in Malaysia. The data are meant to serve as base rates when analyzing steel companies. Revision date: 18 Jun 2023