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Dislike QAF's CEO and investing in QAF.

Friday, April 27, 2018

Reader says...
What is your view with QAF now and what do you think about their management?

Heard some negative comments on their current management, especially about their CEO background.







AK says...
QAF is related to the Salim group in Indonesia. They have a tight grip on the business. Some don't like this kind of family controlled businesses.

I try to stay objective.






QAF did pretty well until the downturn in the pork business in Australia and that is a cyclical commodity business which means things should look up again eventually.

QAF does have a strong balance sheet and should be able to weather the downturn.





Having such a large majority stake in the business, it is in the interest of the insiders to make sure the business does well and continue to be the major beneficiary of a steady and meaningful dividend payout.





Many years ago, some people also told me horror stories about Old Chang Kee's CEO but it has turned out to be one of my best investments.

Most people are attracted to gossip and that is why tabloids do well.






We should only have to concern ourselves with whether the business is able to deliver what we expect from our investment.

Everything else is just a distraction.

Related post:
QAF's earnings downs but...

13 comments:

Jimmy Low said...

Hi AK

With the new sell down on tech stock, can you talk to yourself on Valuetronics and Venture?

Thanks
:)

Jimmy Low said...

With the recent selldown on tech stock, can you talk to yourself on Valuetronics and Venture stock?

Thanks :)

AK71 said...

Hi Jimmy,

My past adventures in tech stocks were mostly misadventures. -.-"

So, I have been avoiding tech stocks for a long time. Not any good at these. :(

blazingruby60 said...

good morning AK
QAF share prices has been sliding and got hammered this morning at 0.95 (an all time low!).. someone did a calculation and reckon this share instrinic value at 0.98 cents and so I am thinking of opening up my childrens piggy bank (never too late to invest for their future).. buy some shares for them and earn 5cents a year for them. :)

but first let me check with the master ..

thanks

Hong Sheng Ng said...

Hi AK,

QAF plunged to a low of $0.965 today before closing at $0.97, do we have much to worry and perhaps if its a good time to accumulate now? Will it see light at the end of the tunnel

Can you talk to yourself about this?

Thanks :)

HS

Hong Sheng Ng said...

Hi AK,

QAF plunged to a new low of $0.965 before closing at $0.97. Is it a good time to accumulate now and if there is much to worry? Will we see light at the end of the tunnel?

Hope you can talk to yourself about this.

Thanks! :)

HS

AK71 said...

Hi HSN,

I don't know if it is a good time to accumulate.

I only know that QAF still has a relatively strong balance sheet but things have been challenging mostly due to the downturn in the pork business in Australia.

Being a cyclical component of the business, things could take a while to improve.

matthew lim said...

HI ak,

at the current price weakness and offering a dividend yield of almost 6%, will u still considering nibbling??

AK71 said...

Hi Matthew,

QAF is now trading at a discount to NAV and there is also some insider buying activity.

I would buy some if I weren't already invested and if I didn't have other investments that are tempting me to buy more as well. ;)

Capricon said...

Hi AK
Besides QAF, what are those tempting you to buy more? ��

AK71 said...

Hi Capricon,

The clues are in my past blogs on my passive income from non-REITs.

I am a very boring and predictable investor. ;)

cheryl2010 said...

Hi AK, QAF is 80cents now!! How??? :) Can buy if got cash?

AK71 said...

Hi Cheryl,

I am reminded that I first became a shareholder at 60+ cents a share.

I have other stocks I am accumulating now but if QAF ever goes to 60+ cents again, I would be quite tempted, all else remaining equal.

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