Global Palm Resources – What really matters in a Stock (Palm Oil Company)
Palm Oil | Listed 2010 | In 3 Countries
Comparison done with HLH Group (H27) – Closest market cap
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.971 (2.9% Below fair value) H27 – 0.513
- Price to earning ratio : 13.907 ( Growing above industry standard –13.046) H27 – 11.507
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 0.024 | 7,710
- Growth Performance : -14.58 | 70.72%
- Current Ratio : 7.167 (Good high 5 years record)| 3.419
- Cash flow per share : 0.0345
- Average management ability ( Lack of constant dividend growth | Good net income/gross profit margin – High expenses | overall Positive cash flow)
3) TECHNICAL ANALYSIS
BLW – Weekly Chart
Overall price action is in a Bearish trend (Lower Highs & Lower Lows) – Speaks something about the management ability to drive stock price up. Currently, market is testing key level (higher probability to continue its bearish trend than bullish). Technically, It would only be a good time to buy if market starts breaking off the red dotted line (Indication of a highly possible trend reversal).
4) Would I be vested into it?
No! Poor Dividend Growth and poor Risk to Reward ratio are my reasons to not buy. This stock will definitely be in my watchlist as I love how they are keeping a high current and low debt/equity ratio.
