The Hour Glass – What really matters in a Stock

“The Hour Glass Limited, an investment holding company, retails and distributes watches, jewelry, and other luxury products in South East Asia, Australia, and North East Asia. It operates boutiques. The company also invests in properties. The Hour Glass Limited was founded in 1979 and is based in Singapore.” – SGX.com

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.995 (0.005% Below fair value)
  • Price to earning ratio : 9.772 ( Below industry standard – 38.83)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 10.9%
  • Growth Performance : –2.34% (5 Years)
  • Dividend Yield : 3.05%[ 5 years]
  • Current Ratio : 4.32
  • Book Value per share : 0.6787
  • Cash Flow per share : 0.0811
  • Above average management ability ( Positive dividend growth  | Average net profit margin | overall Positive cashflow within its business – high cash reserve : 39.2%)Screen Shot 2017-08-03 at 5.23.50 pmScreen Shot 2017-08-03 at 5.23.45 pmScreen Shot 2017-08-03 at 5.23.39 pm

3) Technical Analysis

Screen Shot 2017-08-03 at 5.32.26 pm.jpg

Price action on the weekly chart showed that the stock is in a bearish downtrend, with recent short-term bull run being unable to break key price level. The stock highest price was $0.92 in 2014 and has since been making lower lows. This might be due to the geopolitical change in purchasing behaviour among consumers. A live market order would result in a 1:0.72 RR.

4) Would I be vested into the company?

Yes & No! The stock fundamentals tends to show that the company is under a good management ; ability to sustain growth in different aspect and to keep gearing ratio low when times are hard for brick n mortar while making money. Being a strong believer in price, it puts me in a tight position for a buy order now. Ill definitely be back for u:)

“+1 Knowledge point”

“+1 P.I”

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