finally all the wait has paid off….
Establish in 1984 | 47 Stores | 500,000 loyal members | 12 years of paying dividend (searchable)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.997 ( 99.7% above fair value)
- Price to earning ratio : 8.99 ( Growing below Industry average at 13.45)
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 2.8% ( Low reliance on financing)
- Growth Performance : 1.8% ( Better than Courts – growth rate is at -25.13%)
- Current Ratio : 3.552 (Higher than Courts by 0.95)
- Cash flow per share : 0.56 ( Courts is at 0.0711)
- Average management ability ( Constant growth in dividend | Weak net income margin growth | healthy gross profit margin | Able to recover from a negative cashflow in the previous year | Still making losses on their investment)
3) TECHNICAL ANALYSIS
Currently market is heading to 2012 level where it is testing market support at $0.37. There are obvious two ways the market can go, which is to continue current short term trend where it is making lower highs and lower lows, or, it would be able to find stronger demand by institutional investor (probably Caledonia investment) and break to the long side.
Market on the 1 year seems to be making higher highs and lows overall. Current market price action is consolidating (seeking demand) before heading to the right direction. Market has been respecting $0.44 very tightly as it tries breaking the area for 3 times and it failed. This add additional winning probability to this investment (Short-term).
4) Would i be vested into it?
Yes!! Currently market has a higher probability to reverse to the upside (Short-term) and the company is financially healthy for me to seek long-term growth. The next worry would be how much should I be vested in??
Here are some articles (Fundamental analysis) for your read:
- Challenger Technologies Limited’s Share Price Is Flat Over The Past Year: What’s Next? – The cause in the drop of revenue (Funan)
- A Look At 1 Important Investing Formula For Challenger Technologies Limited – Challenges in selling through brick-&-Motar stores