i don't understand why this counter is at the current price. the company is making profit steady profit in recent quarters and NTA at 0.42. but the price is at PE 3.8 and below NTA. does anybody see a reason why the price is this low?
this is 2nd round for me with this counter...I accumulate again at 26sen..if close at .27 today I think can go further...please do your own study also...
A very quick high level analysis. No time to do indepth study due to the burst upwards. Based on current price of 45 sens, the PE only 7x. NTA stands at 42 sens. If apply a trailing PE of 10, the FV should be 65 sens. Apply a 20% discount for uncertainties, first TP is 52 sens. At your own risk people.
Its two method to this. Either historical or forward looking. Most analyst use forward looking and annualise it then apply a discount. But using trailing PE is safer as it take into account of past performance. Having said tt, even at trailing PE, currently is only 6-7x. Applying a prudent 8x, the fair value should be 52 sens. That will be my immediate TP.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Chew199
94 posts
Posted by Chew199 > 2015-08-28 19:42 | Report Abuse
Great