The Hour Glass – What really matters in a Stock
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%)
3) Technical Analysis
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:)