Lung Kee – What really matters in a Stock (Improve’d version)
Founded in 1975| Mould Base Supplier | China, Japan, Taiwan, Malysia | Listed on 1993
Comparison done with SunningDale Tech (BHQ) – Closest market cap
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 0.852 (14.8% Below fair value) BHQ– 0.513
- Price to earning ratio : 11.14 ( Below industry standard – 26.84) BHQ – 8.736
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 0.08% |28.395%
- Growth Performance : -7.12% | (Not given)
- Dividend Yield : 6.33%[ 5 years] | 6.03% [ 5 years]
- Current Ratio : 4.018 (5 years record of high current ratio)| 1.713
- Book Value per share : 3.49 | 1.87
- Cash Flow per share : 0.6212 (Paying 3.39) – 18% of its stock price
- Average management ability ( Lack of consecutive dividend growth | Good net income/gross profit margin – High expenses | overall Positive cash flow)
3) TECHNICAL ANALYSIS
Market is currently in an overall Bearish (down) trend, where market is making lower high an lower low. Price action on the short-term trend is on the bullish side as it broke 2014 high, this signals a reversal on overall trend. As you can see, we have all missed a good entry which would have given us a 1:10/11 Risk to Reward Ratio. Price action of stock seems to be very very illiquid as you can see how big each candlestick movements are.
4) Would I be vested into it?
YES! but i wouldn’t be purchasing the stock as of now, as current stock price doesn’t give me a good RR ratio.