Hi Mun Seng,
Terence asked similar good questions as you and I’ve already responded the question with a couple of tips. You could view the answers -> here <-
Just to add few more pointers… If I were you, I wouldn’t value a company without understanding the qualitative aspects. 361 was a good example of this scenario and a painful hard-lesson for us which we misinterpreted the business quadrant. If you have been to China, say Shanghai, there are overwhelming number of sports retailers along any shopping district. It’s as if the 7-11 chains in taiwan. There are so many of them. Every few shop houses you go, you are likely to come across a Chinese sport retailer competing aggressively with one another. Just to name a few local brands… Li Ning, Anta, Xstep, PEAK, etc.To cut the long story short, there wasn’t any visible moat. With no differentiation factor, this should be a red flag for us, but we completely missed it! Besides, we also bought 361 because it was really dirt-cheap with high dividend yield (tempted by this). Subsequently, the cash balance was affected as the management claims to use the cash to support its distributors amid oversupply of stocks which raised a major red flag. The rest was history…
