Bukit Sembawang Estates Limited – What really matters in a Stock?
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.
- Price to book ratio : 1.348 (34.8% Above fair value)
- Price to earning ratio : 23.762 ( Above industry standard – 22.68)
2) LEARN ABOUT THEIR NUMBERS
- Debt To Equity : – not disclosed-
- Growth Performance : – 16.91%
- Dividend Yield : 0.73% [ 5 years ]
- Current Ratio : 10.008
- Book Value per share : 4.93
- Cash Flow per share : 0.2804
- Poor management ability ( Positive dividend growth | Positive & Strong net profit margin | overall Positive cashflow within its business – reducing in alot of financing while incurring alot cost on investing)
3) Technical Analysis
Price action on the monthly chart, shows that bullish momentum has only started building up since 2009. Since then, market has seems to have substantial buyers coming in the stock. A current entry will put u in a 1:3.2 RR ratio. Market is currently testing previous key level.
4) Would I be vested into it?
Yes… but not now! Company seems to be financially sound with management maintaining good ratios with high reinvestment of its cash. Technically, price doesn’t make it a justifiable buy for me.
Share with me your thoughts on this stock!
