The more familiar the brand is… the more safe it would be??
Diversified Telecommunication Services | M1 & Starhub are industrialised as Wireless Telecom Services – HUH?!?!? | 6 Subsidiaries (Optus, NCS, InSing, Innov8, Amobee, TrustWave) | 1 Partner – Bridge Alliance
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 2.542 ( 1.5 times overvalued)
- Price to earning ratio : 16.687 ( Over performing – Due to it’s niche industry)
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 36.289 % ( Low reliance on debt for growth)
- Growth Performance : 0.2332% (Low growth rate)
- Current Ratio : 0.841 ( inability to pay off short term debts and long term obligations, if liquidated now – very weird with such a low debt-to-equity ratio)
- Cash flow per share : 0.3771 ( And you’re pay $4 a share with a dividend payout of 0.175 per share)
- Questionable management ability ( Increasing dividend payout | Increasing Net income | Cashflow from operations are decreasing??? choppy numbers?? hmm)
There are definitely some fundamental reasons/strategy for all of this BUT…..With such a high premium to pay for at such a low growth rate with questionable numbers….. I choose to say no to conventional ideas on huge corporation.. unless it’s cheaper 🙂 of course why would u want to buy 1.5 times for an “apple” when you get it cheaper and better elsewhere…. if I’m just patient enough…. will patience get you