ThaiBev – What really matters in a Stock

Established in 2003 (Merging of all 58 companies) | 63 Subsidiaries  | Spirits , Beer , alcoholic drinks and food |

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 4.49 (3.39 times overvalued of its actual value)
  • Price to earning ratio :  21 (Growing below industry standard – 24.465)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 38.6 %  – Better than F&N (434.7%)
  • Growth Performance : 20.19% – Better than F&N (-21.96%)
  • Current Ratio : 1.527 (F&N is at 3.605)
  • Cash flow per share : 0.0473 ( You’re paying 21 Bhat)
  • Good management ability ( Constant dividend growth | Positive net income/gross profit margin | Reduced in financing | Overall a positive cash flow |)screen-shot-2016-12-25-at-3-12-37-pmscreen-shot-2016-12-25-at-3-12-31-pm

3) Technical Analysis

screen-shot-2016-12-25-at-3-27-59-pm

Sg.Fiance – Max Chart (Pricing in SGD)

Overall market trend is on the bull(UP) side, as market clearly shows higher highs and higher lows. Current market highest high is at $1.055, if this level is broken market has a higher odds to trend higher and longer. Additionally, market is finding demand for its stocks as market heads to key level $0.75.

screen-shot-2016-12-25-at-3-28-12-pm

Sg.Finance – 1 Year Chart ( Pricing in SGD)

Market has a short-term bear (down) trend as it continues to market lower high and lower low. It is currently testing gap level, market could either find demand at its current level $0.85 (Unlikely) or $0.75.

4) Would I be vested into it??

Yes…. as the title said. Compared to F&N, it is growing at a better rate even though current ratio is poorer. I’ll be planning to buy in two tranches, one now and another at 0.75.

Below are some reads that you might be interested.

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