ALAM Analysis:-

Excel – http://1drv.ms/1Hy57ui

Notes – http://tinyurl.com/q8zkjcv

My View:-

• Valuation:
  • Absolute EY%
    • Trailing:
      • FY13 (EPS: 0.094) – Fair value 1.13 (Fair Value Uncertainty: MEDIUM)
      • R4Q (EPS: 0.072) – Fair value 0.88 (Fair Value Uncertainty: MEDIUM)
    • Forward:
      • FY14 (EPS: 0.087) – Fair value 1.05 (Fair Value Uncertainty: MEDIUM)
      • FY15 (EPS: 0.098) – Fair value 1.19 (Fair Value Uncertainty: MEDIUM)
    • EPS applied to reach the current stock price (0.68): 0.056
  • Absolute PE
    • FY13 (EPS: 0.094) – Fair value 0.9 (Fair Value Uncertainty: MEDIUM)
    • R4Q (EPS: 0.072) – Fair value 0.7 (Fair Value Uncertainty: HIGH)
• Earnings of ALAM have been highly erratic and unpredictable.
• ALAM is highly leveraged.
• Lower vessel utilisation rates will be lower in light of the volatile/weak oil price environment.
• I will give it a pass.

Latest Financial – Q3 2015 Financial Report (20 Nov 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1800009

At the time of writing, I did not own shares of ALAM.

http://lcchong.wordpress.com/2014/12/24/alam-fundamental-analysis-24-dec-2014/