Karin Technology – What really matters in a Stock (11% Yield)
Still fighting for my welfare..hopefully I’ll get it
Dividend yield stands at 11.42 % | HK company | Founded in 1977 |
Comparison will be done with ExcelPoint Technology(BDF) – Based on closest market cap
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.564 (43.6% Below fair value) BDF – 0.812
- Price to earning ratio : 28.837 ( Growing above industry standard –11.614) BDF – 7.303
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 14.791 | 180.933
- Growth Performance : -23.75 | 7.21 (3 years)
- Current Ratio : 1.628| 1.263
- Cash flow per share : 0.0483
- Below Average management ability ( Lack of constant dividend growth (Heavily reduced now) | Poor net income/gross profit margin – High expenses (94% of Gross) | overall Negative cash flow – Financing and investing)
3) Technical Analysis
Overall market trend is still in a bullish trend (higher high and higher low). Current price action tends to be in a range as seen previous in year 2010 to 2012 before signalling a directional move. Stock price have a greater probability to trend upwards than downwards. If you’re looking for the best position to get in, I would recommend the purple area.
4) Would I be vested into it?
No would be the current answer, price of entry is not of value (even though price book value indicates so). The drop of net income might be due to the high jump in payout ratio to its shareholders. Financially, I don’t quite understand the company’s ability in managing its money. Nonetheless, I will look back into this stock when i have more time…….