“Stay true to what works”
Comparison done with OCB (039)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.157 (15.7 % Above fair value) 039 – 1.14
- Price to earning ratio : 11.768 ( Below industry standard – 17.42) 039 – 11.667
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 81.1% | 53.9%
- Growth Performance : 5.41% (5 year growth)| 5.24% (5 year growth)
- Dividend Yield : 3.24[ 5 years] | 3.65% [ 5 years]
- Current Ratio : – Not given-
- Book Value per share : 20.1 | 8.85
- Cash Flow per share : 2.04 – 9.4% of its stock price | 10% (OCB)
- Below average management ability ( Poor progressive dividend growth | Good net income/gross profit margin growth | overall Positive cash flow – but considered poor)
3) TEHCNICAL ANALYSIS
Market is in a long-term bullish trend; market find strong demand at $8 in 2009 and created a higher high in 2015. Although weekly shows a good entry position (Breaking of key level), it still doesn’t warrants a wise entry for individuals who are looking to long this stock as it puts you in a losing risk to reward ratio.
4) Would I be vested?
- Lack of current ratio
- Cashflow is not as strong to other stocks in my watch-list
- OCB looks like a more stable company as reliance on financing is 30% lesser
- Yet achieving “close-to-similiar” growth
- Better cashflow
- Constant Dividend growth
- Technical shows lousy RR ratios