Founded in 1912 | Property/Engineering/Manufacturing
Comparison will be done with Boustead (F9D)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.873 (22.7 Below fair value) F9D – 1.553
- Price to earning ratio : 65.12 ( Above industry standard – 35.86) F9D – 14.521
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 50.35% | 27.44%
- Growth Performance : -42.99% | -10.33%
- Dividend Yield : 2.09%[ 5 years] | 2.84% [ 5 years]
- Current Ratio : 2.11 | 2.17 [Stable]
- Book Value per share : 3.06| 0.6166
- Cash Flow per share : 0.0583 | 0.1231
- Average management ability ( 0 dividend growth | Weak net income/gross profit margin | overall Positive & Strong cashflow within its business )
Price action on the weekly chart shows that market is in a bullish trend for the past few weeks before forming a Head and Shoulder pattern. The stock seems to be respecting the pattern as you can see the immediate retracement when price tries to break above (ignoring the trend). An entry in this trade would not be wise as market in the past few weeks has been forming bearish characteristics.
4) Would I be vested into it?
No for now (because of technical), but might in the future.
- Good cashflow management and undervalue
- zero dividend growth
- Low profit margin might be due to the size of the company
- H&S pattern is respect
- RR ratio is not worth the entry