Lung Kee – What really matters in a Stock (Improve’d version)

Founded in 1975| Mould Base Supplier | China, Japan, Taiwan, Malysia | Listed on 1993

Comparison done with SunningDale Tech (BHQ) – Closest market cap

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio :  0.852 (14.8% Below fair value)  BHQ– 0.513
  • Price to earning ratio : 11.14 ( Below industry standard – 26.84) BHQ – 8.736

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 0.08% |28.395%
  • Growth Performance : -7.12% | (Not given)
  • Dividend Yield : 6.33%[ 5 years] | 6.03% [ 5 years]
  • Current Ratio : 4.018 (5 years record of high current ratio)| 1.713
  • Book Value per share : 3.49 | 1.87
  • Cash Flow per share : 0.6212 (Paying 3.39) – 18% of its stock price
  • Average management ability ( Lack of consecutive dividend growth | Good net income/gross profit margin – High expenses | overall Positive cash flow)Screen Shot 2017-04-08 at 1.14.36 pmScreen Shot 2017-04-08 at 1.14.31 pm

3) TECHNICAL ANALYSIS

Screen Shot 2017-04-08 at 1.53.03 pm.jpg

Lung Kee – Weekly Chart

Market is currently in an overall Bearish (down) trend, where market is making lower high an lower low. Price action on the short-term trend is on the bullish side as it broke 2014 high, this signals a reversal on overall trend. As you can see, we have all missed a good entry which would have given us a 1:10/11 Risk to Reward Ratio. Price action of stock seems to be very very illiquid as you can see how big each candlestick movements are.

4) Would I be vested into it?

YES! but i wouldn’t be purchasing the stock as of now, as current stock price doesn’t give me a good RR ratio.

“+1 Knowledge Point”

” +1 PI”

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One thought on “Lung Kee – What really matters in a Stock (Improve’d version)

  1. Pingback: Lung Kee – What really matters in a Stock (Improve’d version) – SG Investor Hub

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