Challenger – What really matters in a Stock (It’s a buy!)

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)screen-shot-2016-12-11-at-2-46-56-pmscreen-shot-2016-12-11-at-2-46-51-pm

3) TECHNICAL ANALYSIS

Screen Shot 2016-12-11 at 4.51.29 pm.jpg

Sg.Finance – Max Chart

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.

Screen Shot 2016-12-11 at 4.51.58 pm.jpg

Sg.Finance – 1 Year chart

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:

 

“+1 knowledge point”

“+1 PI”

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7 thoughts on “Challenger – What really matters in a Stock (It’s a buy!)

      • Thanks for your kind words! 🙂

        I wish I was as good at fundamental and technical analysis as you but I’m really not. Main reason for selling off my Challenger shares was due to the declining retail sector in Singapore and that I’m not quite sold on Challenger’s ecommerce venture.

        Switching to ETF is much more simpler as I don’t have to analyse anything. Just keep buying each month. 🙂

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      • You’re too kind too! I’m definitely not good at both (Techn & Fund) either, but I’m trying my best to learn more about it! Haha! I’m currently on Tony robbin’s book that is talking about index/etf investing!

        How is it so far for you??

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      • My portfolio is down by 5% this year as the ETF hasn’t been performing well this year. But just part and parcel of the long term investment cycle. 🙂

        Like

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