BIG COMPANIES ARE ON SALE?!?! VALUE$ SHOP
As political instability sits into the mind of everyone, market prices (Singapore stocks) are fluctuating to hit rock bottom.
Singapore Airline has a few subsidiaries – Cargo / Engineering / Silkair / Scoot / Tours & Travel | Founded since 1947 |
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.872 (13.8% undervalued)
- Price to earning ratio : 14.047
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 8.537 ( Very HIGH reliance on financing for growth – I was too sleepy last night) The reliance on finance might be due to it’s capital intensive nature
- Growth Performance : -5.34
- Current Ratio : 1.005 (Ability to liquidate in peace)
- Cash flow per share : 2.11 ( You’re paying $9.77)
- Average management ability ( Unstable dividend payout | 4 years constant growth in net income (Reducing cogs)| Still making loses under cashflow management)
Market is making lower high and lower low (Bearish trend), while market is reaching 2001-2 area. Market might either find demand for buyers or sellers to short further down. (I might wait for confirmation before entering)
Would it be a buy ??? Hmm.. I would seriously consider this as everything looks decent (Average) but then again if the hesitation is there…. I guess I wouldn’t….
I guess the major hesitation comes from the unstable dividend payout and the cashflow management issues – 5 years of loss??? (Reinvesting activities must be high)
– As encouraged and reminded by a friend… I will try to
impress IMPROVE (Obviously i was sleeping) my depth of analysis. in the stock