Keong Hong Holdings – What really matters in a Stock (8% Dividend Yield??)
Construction & Engineering | Founding in 1983
Comparison will be done with OKP Holdings Limited (5CF) – Closest market cap
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.71 (39% below fair value) 5CF –1.024
- Price to earning ratio : 2.984( growing below industry standard – 16.52) 5CF – 8.175
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 43.215 | 2.751
- Growth Performance : 31.03% | –12.26
- Current Ratio : 1.839 | 2.273
- Cash flow per share : 0.0165
- Below Average management ability ( Lack of constant dividend growth | Average net income/gross profit margin – Increase in the cost of doing business (Financing) | overall Negative cash flow – 5 years of bad investing)
3) TECHNICAL ANALYSIS
Market price action shows an overall bullish trend (Higher highs and Higher lows) and market is in a key level (strong demand level) that has been tested previously (Failed) before breaking upwards. Stock’s price is a a level where it would give you a 1:337 risk ratio, which is considerably a good entry point.
4) Would I be vested into it?
Yes but only for the short run (Not an investor point of view // trader’s pov) and No for an investing point of view. Financially, the company is not really in a good spot for anyone to be putting money in. The growth rate might be driven by price demands (FOMO by word of mouth by some cocknuts) as you can see how technicals has been driven up previous for the last 3 years. The company lack good financial history for a long term investment (Dividend history is also another factor).
Then again… its subjective to any individual