3 Malls in the busiest place of China – Hongkong/Shanghai/Beijing
Comparison will be done with Mapletree Logistic (M44U)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.861 (13.9% Below fair value) M44U – 0.874
- Price to earning ratio : 7.36 ( Below industry standard – 22.45) M44U – 15.298
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 75% | 68%
- Growth Performance : 3.5%| -23.59%
- Dividend Yield : 4.04%[ 5 years] | 6.22% [ 5 years]
- Current Ratio : 4.018 (5 years record of high current ratio)| 1.713
- Book Value per share : 1.21 | 1.27
- Cash Flow per share : 0.1421 – 13.6% of its stock price
- Average management ability ( Good Consecutive dividend growth | Good net income/gross profit margin | overall Positive cash flow)
3) TECHNICAL ANALYSIS
Market is currently in a bull trend, higher highs & higher lows. The stock has a high probability to trend upwards as price action indicates a strong buying demand (pink area) after creating a higher low of it’s trend. Current position of entry puts you at a 1:1 RR ratio.
4) Would I be vested into it?
No as price of stock is not in a position for a wise entry. That begin said, I’d find that the financials of the company to be one of the best that I’ve written the past few weeks.… but guess we were too late for the nice price action movement.
Things that I’ve learnt from this investment:
- f*ing do more analysis to spot such good stock (so I can buy at a better price)
- Notice the period of price growth (It allows you to set a proper exit strategy)