WANG ZHENG – KING OF DOMAIN – THE DEFENSIVE RECESSION PROOF GROWTH STOCK

January 10, 2016 By Calvin Tan Smart Investment

Wang Zheng means “KING OF DOMAIN”

Wang Zheng is a manufacturer of baby nappies & adult diapers. These are unglamorous products nothing to shout about.

However, from past experiences, investing in unglamorous things  do yield fantastic results.

Take  Muda & Oka  for examples. Muda is involved with recycling waste papers (Sampah) while Oka deals with drain pipes (Longkang). Longkang & Sampah? And now Wang Zheng’ baby & adult diapers (Berak?). What unpleasant stuff?

Yet they are making good monies for share holders. We bought Muda at 32 cents. Now Rm2.35 (Up 700%) and Oka at 35 cents (Also up 600% after bonus issue). So don’t look down on small unglamorous companies. So, Sampah, Longkang & Berak, though unpleasant, will make tonnes of monies for you.

These are the Salient Factors for Wang Zheng

(Don’t be confused with other China listed Companies in Malaysia. Wang Zheng is a 100% Malaysian Owned Company with all Existing Factories in Sungai Buloh & Rawang)

  1. GOOD MARGIN OF SAFETY. Selling at 76.5 cents with NTA of Rm1.06
  2.  Rock Solid  Recession Proof Business. Baby nappies & adult diapers are necessities of life.
  3.  Rock Solid Growth – Forward P/E is only 8.5
  4. Rock Solid Prospects. Exporting 90% of its products overseas. And with strong US Dollar its profits will swell
  5.  Rock Solid Balance Sheet. It has NET CASH POSITION OF RM100 MILLIONS. Or 55 cents per share.
  6.  Rock Solid Shareholders. 88% of the Shares are owned by Top 30 Major Shareholders. So there is a very limited 12% free float. Better buy early while it’s still cheap before Mr. Market discovers it!
  7. Increasing dividends by the years. With 9.39% FCF (Free Cash Flow). There is surplus Cash for dividends.
  8. Wang Zheng – An undiscovered, overlooked, hidden gem of Great Value!

WANG ZHENG – KING OF DOMAIN OR FORTRESS

Fortify Your Investments  And Protect Yourselves By Investing in WANG ZHENG Now.

China experienced Twice Limit Down Trading Halts after Crashing 7% this past week & Dow Jones collapsed over 1,000 points in just 7 days! 2016 looks like a very turbulent year ahead.

So Here You Are! A Stock for Safety & Growth in these tough times.

WANG ZHENG – CERTAINTY IN UNCERTAIN TIMES!

 

Note: Wang Zheng has Rm70 millions short term borrowings. But they are backed by Rm70 Millions “Trust Receipts” & Rm50 Millions in Receivables. Its receivables are from reputable pharmacies, hospitals & established supermarkets. So Wang Zheng has Net Cash & Debt Free Position overall. This is Rock Solid Safety.

CHEERS

Regards,

Calvin

Comments (2)

  1. Since 2016 is a turbulent year, I hope you will continue to uncover more defensive( but with growth) stocks like Wang Zheng for our capital protection. As always , thanks for all your hard work!

    1. Thanks WinnerZhang,

      My Next Post is on Opcom

      I had 130 Counters in 2007. Just before Lehman Brothers gone bankrupt in 2008 I sold off all 130 Counters except Opcom. I even increased my position in Opcom till I became one of the Top 30 Shareholders in Opcom’s 2008 Annual Report.

      I am now taking a 2nd look at Opcom.

      Will post later.

Comments are closed.

Recent Posts