Singapore Press Holding – What really matters in a Stock (Making a change starting next week)

“Changes starts when your value structure changes”

Comparison will be done with Alibaba Pictures Group (S91)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.667 (66.7% Above fair value) S91 – 1.584
  • Price to earning ratio : 24.902 ( Below industry standard – 29.45)   S91 – Not given

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 39.48% | 11.57%
  • Growth Performance : -7.39% (5 year growth)| -8% (5 year growth)
  • Dividend Yield : 3.8% [ 5 years] | 0% [ Doesn’t pay]
  • Current Ratio : 2.01 |5.173 ( High Current ratio history)
  • Book Value per share : 2.08 | 0.7659
  • Cash Flow per share : 0.1893 – 5.4% of its stock price | Negative 9% (S91)
  • Slight below average management ability (No progressive Dividend Growth | Good net income/gross profit margin growth | overall Positive cash flow (LOW)Screen Shot 2017-04-29 at 8.32.34 amScreen Shot 2017-04-29 at 8.32.29 am

3) TECHNICAL ANALYSIS

Screen Shot 2017-04-29 at 8.49.18 am.jpg

Monthly Chart

Market is in a overall bearish trend as market has failed to break 2002 high in 2013. Current market entry puts u in a 1:2.59 RR ratio while putting u in a low winning probability investment. Would you invest(buy) in a bearish market // Would you go against the trend?

4) Would I be vested?

No! Alibaba too has poor financial numbers (Negative cashflow // No dividend // Negative net/gross profit)

  • Fundamental
    • Overvalued
    • Poor cashflow
    • Poor Dividend progressive growth
  • Technical
    • Stock is still in a bearish trend
    • Good RR ratio but poor winning probability ratio

 

I’ll be starting to log my forex trading a/c trades in this blog! Stay tune!

“+1 Knowledge point”

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