Swee Hong – What really matters in a Stock?

“Swee Hong Limited, an investment holding company, engages in the civil engineering and tunneling works in Singapore. It offers construction engineering services comprising micro tunneling/pipe-jacking and tunneling services; parks and services in architectural, mechanical and electrical, civil and structure, soil improvement, and landscaping sectors; and infrastructure construction services, including roads, bridges, flyovers, canals, and sewers. The company was founded in 1962 and is based in Singapore.” – SGX

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 6.281 (600% Above fair value)
  • Price to earning ratio : 2.124 ( Below industry standard – 20.83)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 64.9%
  • Growth Performance : –
  • Dividend Yield : 0.23%[ 5 years]
  • Current Ratio : 0.913
  • Book Value per share : 0.0029
  • Cash Flow per share : 0.0233
  • Poor management ability ( dividend growth  | High net profit margin | Low Net Income  | overall Positive cashflow within its business / Heavy reliance on financing )Screen Shot 2017-07-22 at 9.33.06 amScreen Shot 2017-07-22 at 9.33.01 amScreen Shot 2017-07-22 at 9.32.57 am

3) Technical Analysis

Screen Shot 2017-07-22 at 9.40.05 am.jpg

Price action on the Daily Chart, indicates that market is still in a long term bearish trend, but somehow bullish momentum is building up on short-term. The big gap looks like a huge institutional sell off with great volume. A market execution order will put you in a 1:0.3 RR ratio.

4) Would I be vested into this company?

Nope!

Fundamentals:

  • Overvalued
  • Cost of doing business is crazy
  • Average days of inventory has increase like crazy even with the increase of spending
  • Poor current ratio

Technically:

  • Low RR ratio
  • Market still has a long way to signify a greater bullish momentum

Disclaimer: This information is biased and doesn’t act as an advise for your actions.

p.s as many people have kept commenting on the limited about of numbers or information is because I want those lazy nut sacks to do their own due diligence.

“+1 Knowledge Point”

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