Telechoice International – What really matters in a Stock

Founded in 1998 | Personal Communication Services | Distribute phones of Huawei, Samsung, LG, Sony | Network Engineering Services | Info-Communication Technology Services | Operation in 6 Region

Comparison will be done with Memtech International Ltd (BOL)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.569 (56.9% below fair value) BOL – 0.73
  • Price to earning ratio : 15.417 ( Above industry standard – 14.5) BOL – 11.266

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 16.08% | 12.13%
  • Growth Performance : 3.06% (5 year growth)| 0.3956% (5 year growth)
  • Dividend Yield : 1.21% [ 5 years] | 2.81% [ Doesn’t pay]
  • Current Ratio : 1.68 ( 5 year history) |2.881 ( High Current ratio history)
  • Book Value per share : 0.1657 | 1.12
  • Cash Flow per share : 2.31% of its stock price | 15.41% (BOL)
  • Slighty below average management ability (No progressive Dividend Growth | Weak net income/gross profit margin growth | overall Positive cash flow (Low) | Poor asset managementScreen Shot 2017-05-14 at 2.37.49 pmScreen Shot 2017-05-14 at 2.37.45 pm

3) TECHNICAL ANALYSIS

Screen Shot 2017-05-14 at 2.43.01 pm

Monthly chart shows that stock is in a bullish trend as it continues to form greater highs and lows. Stock has been in trend since 2009 and recent low in 2015 is the invalid point of strategy. Additionally, stock seems to be really correlated to with global news (Bad thing). Current market entry will put you in a 1:1.3 RR ratio.

4) Would I be vested into it?

No.

Fundamentally:

  • Overvalued
  • Weaker in numbers compared to competitor (Current, DE ratio, Cashflow, Bookvalue

Technically:

  • RR ratio not in a favourable position for an entry.

Would you buy?

“+1 knowledge point”

 

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