Courts – What really matters in a Stock

Everybody knows this brand means good?

Listed on SGX 2012 | Indonesia, Malaysia & Singapore | 1.3 million Home Club members

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.789 (21.1% below fair value)
  • Price to earning ratio : 9.664 ( Growing below industry standard at 13.45 – but still better than Challenger)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 110% ( High reliance on financing – 4,583 worst than Challenger)
  • Growth Performance : -25.13% ( Better than Challenger – growth rate is 1.8%)
  • Current Ratio : 2.664 (lower than Challenger by 0.95)
  • Cash flow per share : 0.0711 ( Challenger is at 0.56)
  • Weak management ability ( Reduction in dividend | Negative net income margin growth | reducing gross profit margin | Increased in financing | Still making losses on their investment)screen-shot-2016-12-19-at-9-58-43-amscreen-shot-2016-12-19-at-9-58-38-am

3) Technical Analysis

screen-shot-2016-12-19-at-10-03-21-am

Sg.finance – Max Chart

Overall Market trend looks on the bearish side as stock tries to seek greater demand in 2016. Market has been bearish for 3 years straight! It has currently broke its earlier downfall in 2015.

screen-shot-2016-12-19-at-10-03-35-am

Sg.finance – 1 Year Chart

Currently, on the short-term trend of this stock would be on a bull (Up) side as market is still making higher highs and higher lows. Market currently has a higher probability to continue its short-term trend if it breaks the $0.465 high, if it fails to do so, market have a greater possibility to reverse even lower.

4) Would I be vested into it?

As of now, the answer would be a strong NO. Currently, I have a better winning probability in Challenger than I would have in Courts.

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