Value Stock

More
28 Jan 2019 23:01 #24652 by walterlim
Replied by walterlim on topic Value Stock
In Peter Lynch's One Up on Wall Street, he wrote that a p/e ratio thats half the growth rate is very positive and it is a measure he uses all the time in analysing stocks for mutual funds.

Looking at Tat Seng's growth rate FY2016-FY2017, it is roughly 40%. Its longer term growth rate FY2014-FY2017 is 114%. Now, take a look at its P/E ratio of 4.25. it is only about 1/10 of its FY2016-FY2017 growth rate.

It has been paying dividends annually since 2015 and at least 1 cent per year. It is doing something dull, which is ironically attractive in the eyes of Peter Lynch. Quoting him, a company that does boring things is almost as good as a company that has a boring name, and both together is terrific. If a company with terrific earnings and a strong balance sheet also does dull things, it gives you a lot of time to purchase the stock as a discount.

Please Log in or Create an account to join the conversation.

More
29 Jan 2019 00:44 #24653 by josephyeo
Replied by josephyeo on topic Value Stock
Good pick Walterlim.
May pick some later.

Please Log in or Create an account to join the conversation.

More
29 Jan 2019 09:07 #24654 by walterlim
Replied by walterlim on topic Value Stock
Hi Joseph,

You are welcome. Thanks for also sharing lots of undervalued stock picks. Good luck!
The following user(s) said Thank You: josephyeo

Please Log in or Create an account to join the conversation.

More
31 Jan 2019 09:35 #24657 by walterlim
Replied by walterlim on topic Value Stock
In Tat Seng's annual report,

it expects" the corrugated paper packaging products market is seeing a positive turn with rising demand for corrugated products leading to opportunities for growth". It further explains that their China subsidiaries's ability to raise selling prices for the corrugated paper packaging products to be the main contributor to the increase in revenue and earnings.

It has also acquired new land for the building of a new production last year and "The Group is expected to commence the operation of its new production line of Nantong Tat Seng in the fourth quarter of 2018". This will further contribute to earnings and reducing costs.

Please Log in or Create an account to join the conversation.

More
31 Jan 2019 13:20 #24659 by walterlim
Replied by walterlim on topic Value Stock
Another potentially undervalued stock

Koda Ltd.

Earnings have increased from 1.64m in FY2016 to 5.67 FY2018.
For the last 4 quarters, Return on Equity and Assets has been stunning double digit ranging from 12.97% to 22.12%.

Company has no debt and cash of $12m USD. In its annual report, the company is on track to open 100 outlets in China by 2020. In Oct 2018, the company has reached the halfway milestone of 50th outlet in China. The rapid expansion phase will contribute to higher earnings.

The CEO has also mentioned that the current trade wars has not impacted business opeations and earnings.

Please Log in or Create an account to join the conversation.

More
01 Feb 2019 09:18 #24661 by walterlim
Replied by walterlim on topic Value Stock
In Koda's most recent financial results,

Cash increased from 10m to 12m approximately. Inventories decreased slightly, despite that the company is expanding more outlets.

In its press release, it also mentioned it will debut its outlet in Hong Kong in November 2018. "Despite ongoing trade war tensions, each of our business segment continue to grow". The company is expected to launch also in Philipines.

Please Log in or Create an account to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings1.030-0.020
Alliance Mineral0.123-0.007
Anchor Resources0.0150.001
AusGroup0.027-0.001
Avi-Tech Electronics0.280-
Best World Int.1.360-
China Sunsine1.130-
CSE Global0.4850.005
Food Empire0.500-
Geo Energy0.161-0.001
Golden Energy0.210-
GSS Energy0.082-0.001
HMI0.7200.005
ISDN Holdings0.235-
KSH Holdings0.425-
Miyoshi0.042-
Moya Asia0.0760.001
Nordic Group0.300-
Oxley Holdings0.3300.005
REX International0.069-
Riverstone0.915-0.015
Roxy-Pacific0.400-
Sing Holdings0.405-
SingMedical0.380-
Sino Grandness0.0470.002
Straco Corp.0.775-0.005
Sunningdale Tech1.380-0.020
Sunpower Group0.4900.005
The Trendlines0.080-
Tiong Seng0.2450.010
Uni-Asia Group0.750-
XMH Holdings0.153-
Yangzijiang Shipbldg1.5200.030

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1017 guests and no members online