Great Eastern Holdings Limited – What really matters in a Stock

Is insurance company safe?

Founded in 1908 | $60 Billion in asset | Offices in Asia

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.573 ( 57.3% overpriced)
  • Price to earning ratio :  12.474 ( Under performing across industry standard of 14.10)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 6.17% ( Super low reliance on financing for growth)
  • Growth Performance : 9.14 % 
  • Current Ratio : 2.159 ( twice the ability to pay off its short-term debt and long term obligations)
  • Cash flow per share : 1.16( Remember you’re paying $20.17a share)
  • Average management ability ( Increasing Dividend payout | Drop in net income | Increase in financing cashflow)screen-shot-2016-10-28-at-8-04-45-amscreen-shot-2016-10-28-at-8-04-40-am

Technical Aspect

Current market price is at a strong support resistance that is still seeking demand for buyers to push price high. If market break previous price high of $25, market have a higher tendency to trend higher, If market breaks the current level of $20, market have a stronger tendency to trend lower.

Would It be a buy for me?? With the stock being overvalued by 57% and a growth rate below industry standard, it will be a no for me. Look at the cashflow on 2012, Investing is at negative 2,023 (2/3 draw down of 2011 gains) and 2014 927.1(3.5 times of 2013 gains) and market price is still going up??

But all in all……. I’m just being very conservative  kiasu….

“+1 Knowledge point”

” Probably a future PI 5-10 years time”

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2 thoughts on “Great Eastern Holdings Limited – What really matters in a Stock

  1. Pingback: Prudential – What really matters in a Stock (Is insurance company that safe?) |

  2. Pingback: Prudential – What really matters in a Stock (Is insurance company that safe?)

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