UOB – What really matters in a Stock

“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)Screen Shot 2017-04-23 at 12.53.37 pmScreen Shot 2017-04-23 at 12.53.31 pm

3) TEHCNICAL ANALYSIS

Screen Shot 2017-04-23 at 1.00.37 pm.jpg

Monthly Chart

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?

No

  • 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

“+1 Knowledge point”

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