Ellipsiz (BIX) What really matters in a Stock

the only thing that confuse us is our desperation to get rich quick

Ellipsiz is in the semiconductor industry

1)  Identification of Companies that are undervalued.

  • Price to book ratio : 0.491 (GSS promotion – 51% discount)
  • Price to earning ratio : 6.533 ( Under valued – Below average < 9.376, Might not be performing so well as compared to its competitor)

2)  Learn about Their numbers

  • Total Asset : $156.39 Mil
  • Total Liabilities : $28.269 Mil
  • Net Asset Value : 76.43 (True worth of each share)
  • Growth Performance : 42.14%
  • Current Ratio : 3.2 (Ability to pay short – term debt and long term obligations if the company liquidates now. Means it have 3 times the ability to pay of its S.T and L.T debt)
  • Cashflow management – ability to increase Gross profit at a healthy rate (maintaining low service cost for products sold)

Screen Shot 2016-09-01 at 5.55.16 pm.jpg

  • Debt to equity ratio – The debt used to finance its operations ( What I’m looking for its their management ability to reduce debt while producing growth)

Screen Shot 2016-09-01 at 6.02.43 pm.jpg

Additionally this company has the second highest market cap (means 2nd biggest – in dollar terms), do not be drawn by how big it is but by its management ability in managing it’s number

Making everything as straightforward as possible and don’t ever overcomplicate stuff (an Apple is red means an Apple is red – countless of study have been done to justify it’s redness but is it necessary? what value does it gives?)

+1 Knowledge Point

i might add a potential P.I section soon 🙂

One thought on “Ellipsiz (BIX) What really matters in a Stock

  1. Pingback: Hutchison Port Holding – What really matters in a stock? |

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