Pan Hong Holdings – What really matters in a Stock (Useless 13.5% Dividend yield)

13 Properties All in china | Listed on 2007

Comparison done with CWG International Ltd. (ACW) – Closest market cap // Available details

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.296 (70.4% below fair value)  ACW – 0.648
  • Price to earning ratio : 8.562( growing above industry standard – 7.61)  ACW – 5.192

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 40.717 | 555.923
  • Growth Performance : -19.19 |  190 (3 years)
  • Current Ratio : 1.932 | 1.737
  • Cash flow per share : 0.0499
  •  Below Average management ability ( Lack of constant dividend growth | Average net income/gross profit margin – High cost of doing business 3/4 of Profit | overall Positive cash flow – Financing and investing)Screen Shot 2017-03-13 at 1.03.56 pmScreen Shot 2017-03-13 at 1.03.52 pm

3) TECHNICAL ANALYSIS

Screen Shot 2017-03-13 at 1.25.25 pm.jpg

Weekly Analysis

Stock is currently in a long term bear (Short) trend for 7 years, as it continues to make lower highs and lower lows. Ending of 2016, stock has failed to break key level (Pink) as it forms a supply candlestick (bearish). It signifies that market has a higher chance to break beyond the lowest low (Red dotted line).

4) Would I be vested into it?

No no, company is in a high cost business which is something that will eventually backfire (Personal thought). Additionally, technical (Stock price) has been on a down trend for 7 years and has failed to break initial IPO price late last year – This shows that there is a greater issue with the company that it is. (economic downturn is not even that long – longest was 6 years in US year 1815).

But if you’re planning to get into it with some insider scoop, let me know please….. but seriously, get it at a price that is of the highest value. The red line has been tested…..

 

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