Jardine Strategic Holdings – What really matters in a Stock ($2 to $42 in 10 years)
again with my lousy analysis….
Comparison will be done with Keppel Corporation (BN4)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.9 (10 % Above fair value) BN4 – not given
- Price to earning ratio : 8.998 ( Below industry standard – 17.6) BN4 – 14.456
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 21.256% | 75.86%
- Growth Performance :-5.91% (5 year growth)| -16.9% (5 year growth)
- Dividend Yield : 0.84% [ 5 years] | 4.35% [ 5 years]
- Current Ratio : 1.371 | 1.79
- Book Value per share : 23.59 | 6.48
- Cash Flow per share : 10.88 – 25.72% of its stock price | 9.2% (BN4)
- Above Average management ability (Good dividend growth (12 yrs) | Good net income/gross profit margin growth | overall Positive cash flow (High)
3) TECHNICAL ANALYSIS
Overall market is in a bullish trend as you can see market has too, just broke of recent monthly high. Market has a high tendency to retest its new level which will put me in a spot of uncertainty (where risk is known and reward is unknown).
4) Would I be vested?
Yes! But not now.
- Company has good financial history (since the start)
- CASHFLOW (highest I have ever seen)
- Good management ability
- Price doesn’t affect its performance ability
- Growth in stock price (demand after retracements)
- Price has proved that it is in a bullish trend
- Not at a good level for me to invest (Uncertainty)