Chemical Industries (Far East) – What really matters in a Stock

Must always listen to professional advise on tv

Sole manufacturer of chlorine/caustic soda/other chlor-alkaline products in Singapore | Since 1963 | 3 Facilities

1)  Identification of Companies that are undervalued.

  • Price to book ratio : 0.487 (52 % Discount?!)
  • Price to earning ratio : 4.123 (Undervalued)

2)  Learn about Their numbers

  • Debt To Equity: 19.239 (Super low reliance on debt for growth)
  • Growth Performance : 15.37
  • Current Ratio : 2.212 ( 2 times the ability to pay off debt)
  • Management Ability (Steady Constant/Increasing dividend payout | Reduce Cogs while Total revenue is low – Good Characteristic/Strategy)Screen Shot 2016-09-17 at 12.44.36 pm.jpgScreen Shot 2016-09-17 at 12.46.37 pm.jpg

This is definitely a buy buy for me, but as of now I would like to utilize the knowledge I have on maximising my investment dollars. Hopefully when the times comes, the price of this company will drop 😦

+1 Knowledge Point

+ PI

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