Founded 1982 | Property development / Hotel management / Waste management | Hotels under Management – Sheraton , The Residence, Four Points
Comparison will be done with Gallan Venture (5IG)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.584 (41.6% below fair value) 5IG – 0.452
- Price to earning ratio : 9.594 ( Below industry standard – 24.74) 5IG – 10.918
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 24.44% | 157%
- Growth Performance : 3.16% (5 year growth)| 32.90% (5 year growth)
- Dividend Yield : 0.97% [ 5 years] | 0% [ Doesn’t pay]
- Current Ratio : 2.24 |1.57 ( Poor Current ratio history)
- Book Value per share : 2.08 | 0.3211
- Cash Flow per share : 19.75% of its stock price | 2.73% (5IG)
- Slighty below average management ability (No progressive Dividend Growth | Good net income/gross profit margin growth | overall Positive cash flow (High)
3) TECHNICAL ANALYSIS
Since 2009, market has been making steady and gradual price action growth which indicates a strong overall bullish trend. Recently, stock has been unable to find buyers for its current price as seen in the failure to break key area and previous high. This might be a sign for a trend reversal. A long entry now will put you in a R:R of 1:1.5.
4) Would I be vested into it?
I might in the future.
- Poor current ratio
- Management approach has just changed about dividend payout (Better now)
- Good cashflow
- Good profit margin (5 Yrs)
- Poor RR ratio
- Poor Winning probability as price indicates possibility of trend reversal