IQ Group Holdings Bhd

This is the new company being bought into my value-stock portfolio today.

I bought it at 50sen, which is a discount of more than 40% from its net-working-capital per share (based on its Dec-2009 report).

Other good criteria of this company:

• Plenty of cash (about 35 sen per share).
• zero borrowings.

The stock is currently trading near its historical low price. The PE ratio is around 10, based on its three years average earning of FY2007~2009.

The company was listed on Bursa since 2005. Its profitability had been falling through these years, and suffered a small amount of lost in FY2009. It stopped paying dividend since 2008.

For the FY2010, a profit of 2.5 sen per share was recorded for the 9-month period ending Dec-2009. No dividend had been declared yet.

The investment decision today is kind of Walter Schloss' style. Walter likes to purchase companies when they were facing problem, i.e. when their profit and dividend fell, provided that the company had no debt. And he likes to bought companies at prices near their historical low.

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