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2:57 pm
November 13, 2009
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Jae Jun
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| Admin
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Sold a great company at its fair price. If prices should even fall to unreasonable levels, I'll be buying again.
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1:18 am
October 6, 2009
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Jae Jun
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No worries. Appreciate the comments
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4:07 pm
October 5, 2009
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chiawei8312
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Thanks for the update Jae, great help as always
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3:49 pm
October 5, 2009
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Jae Jun
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Adjust the FCF to 20.
Growth rate 14%
Discount rate 15%
Gives $117-$120 which I think is pretty accurate on the intrinsic value.
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2:28 pm
October 5, 2009
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chiawei8312
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| Member | posts 19 |
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Thanks for the reply, could you please tell what input you used on the 10yr OSV to get 120$?
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12:36 pm
October 5, 2009
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Jae Jun
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chiawei8312,
My intrinsic value comes out to around $120 and if I sell for $110 it's still less than 10% off the target price.
It's just a matter of asset allocation really. Had I sold all of KTII and spread it across my other current holdings, I would be able to earn a much better return than the 15% I expect from KTII going forward.
Nothing wrong with KTII. Still an absolutely fabulous company but it isn't a position I would average down on current prices.
The only time I would buy again is if it drops down to the 60's or 70's again.
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12:10 pm
October 5, 2009
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chiawei8312
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| Member | posts 19 |
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Hi Jae,
Looking at your newest post, you mention that you were thinking about exiting KTII, I was just wondering why you wanted to exit at 110$. In terms of DCF valuation they are still very cheap with 15% growth and 9% discount. They still been paying off debt and started buying back stocks. They have a lot of cash on hand and ROIC is still around 14-15%
Looking for your input
Thanks
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