Singapore Press Holding – What really matters in a Stock (Making a change starting next week)
“Changes starts when your value structure changes”
Comparison will be done with Alibaba Pictures Group (S91)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.667 (66.7% Above fair value) S91 – 1.584
- Price to earning ratio : 24.902 ( Below industry standard – 29.45) S91 – Not given
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 39.48% | 11.57%
- Growth Performance : -7.39% (5 year growth)| -8% (5 year growth)
- Dividend Yield : 3.8% [ 5 years] | 0% [ Doesn’t pay]
- Current Ratio : 2.01 |5.173 ( High Current ratio history)
- Book Value per share : 2.08 | 0.7659
- Cash Flow per share : 0.1893 – 5.4% of its stock price | Negative 9% (S91)
- Slight below average management ability (No progressive Dividend Growth | Good net income/gross profit margin growth | overall Positive cash flow (LOW)
3) TECHNICAL ANALYSIS
Monthly Chart
Market is in a overall bearish trend as market has failed to break 2002 high in 2013. Current market entry puts u in a 1:2.59 RR ratio while putting u in a low winning probability investment. Would you invest(buy) in a bearish market // Would you go against the trend?
4) Would I be vested?
No! Alibaba too has poor financial numbers (Negative cashflow // No dividend // Negative net/gross profit)
- Fundamental
- Overvalued
- Poor cashflow
- Poor Dividend progressive growth
- Technical
- Stock is still in a bearish trend
- Good RR ratio but poor winning probability ratio
I’ll be starting to log my forex trading a/c trades in this blog! Stay tune!
