AEM Holdings – What really matters in a Stock

3 Manufacturing Plant (China, Malaysia, Singapore) | Presence is in 8 countries | Precision / Plating & Chemical /  Equipment Solution | Many famous directors in its board

Maybank holds 5 %,  while 40% are hold by two separate Novo Tellus companies

Comparison will be done with Micro-Mechanics (5DD)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 4.364 (436.4% Above fair value) 5DD – 3.385
  • Price to earning ratio : 17.798 ( Above industry standard – 23.74) 5DD – 13.01

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 0.19% | – No data Available-
  • Growth Performance : -6.48% | 11.68
  • Dividend Yield : 2.38%[ 5 years] | 0% [ 5 years] – They pay dividend
  • Current Ratio : 1.68 | 4.83
  • Book Value per share : 0.5316 | 0.3604
  • Cash Flow per share : 0.1421
  • Below average management ability ( Average dividend growth (Only started paying in 2015) | Weak net income/gross profit margin | overall Positive cashflow but weak)Screen Shot 2017-07-08 at 10.35.56 amScreen Shot 2017-07-08 at 10.35.33 amScreen Shot 2017-07-08 at 10.35.29 am

3) Technical Analysis

Screen Shot 2017-07-08 at 10.43.47 am.jpg

This is definitely a popular stock as you can see the price jump of 10.5 times in a span of 1 year. Market is a overall bullish trend but is not in a short-term perspective. A live entry puts you in a 1:0.74 RR ratio. Technical entry would be very speculative at this

4) Would I be vested into it?

Nope but I would love to know more about this company. The amount of money you will make in one year is ridiculous.

Fundamentally :

  • $2.58 million debt dropped to a mere $85k within 5 year (is absolutely amazing)
  • Current ratio can’t beat competitor’s
  • Heavily overvalued
  • Poor cashflow

Technically :

  • An entry would be quite speculative

“+1 Knowledge Point”

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