Swee Hong – What really matters in a Stock?
“Swee Hong Limited, an investment holding company, engages in the civil engineering and tunneling works in Singapore. It offers construction engineering services comprising micro tunneling/pipe-jacking and tunneling services; parks and services in architectural, mechanical and electrical, civil and structure, soil improvement, and landscaping sectors; and infrastructure construction services, including roads, bridges, flyovers, canals, and sewers. The company was founded in 1962 and is based in Singapore.” – SGX
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 6.281 (600% Above fair value)
- Price to earning ratio : 2.124 ( Below industry standard – 20.83)
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : 64.9%
- Growth Performance : –
- Dividend Yield : 0.23%[ 5 years]
- Current Ratio : 0.913
- Book Value per share : 0.0029
- Cash Flow per share : 0.0233
- Poor management ability ( 0 dividend growth | High net profit margin | Low Net Income | overall Positive cashflow within its business / Heavy reliance on financing )
3) Technical Analysis
Price action on the Daily Chart, indicates that market is still in a long term bearish trend, but somehow bullish momentum is building up on short-term. The big gap looks like a huge institutional sell off with great volume. A market execution order will put you in a 1:0.3 RR ratio.
4) Would I be vested into this company?
- Cost of doing business is crazy
- Average days of inventory has increase like crazy even with the increase of spending
- Poor current ratio
- Low RR ratio
- Market still has a long way to signify a greater bullish momentum
Disclaimer: This information is biased and doesn’t act as an advise for your actions.
p.s as many people have kept commenting on the limited about of numbers or information is because I want those lazy nut sacks to do their own due diligence.