*Official* MasterLeong Thread - Part 2

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MasterLeong

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The current ratio so low also super big red flag
Current ratio shows the ability of company to meet debt in short run

Half liquid assets to meet 1 full liability is bad
At minium need a current ratio of 1

Taken from investopedia


If current liabilities exceed current assets the current ratio will be less than 1. A current ratio of less than 1 indicates that the company may have problems meeting its short-term obligations.[3]
 

[M]aiev

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What do you mean by good fundamentals?

This is a highly leveraged stock by the way, its growth is fueled by cheap loans. I will sell now that you have made profit.

Its fundamentals indicate it is either fairly valued or overvalued.

Enterprise Multiple:8.66
Price to book: 3.51
P/E: 21.06

The company is doing pretty good business. Its return on assets is about 10% which means the underlying business is good. But the warning sign is the following:

Current Ratio:0.48
Debt/Equity: 93.69

So when the going is good, the company is fine. But when it is bad, there is a high chance the company will not be able to pay its debts, and wipe out your gains. A current ratio less than one means that the company does not even have enough liquid assets right now to cover a single year's liabilities, so basically, when the market hits a downturn, the company is at risk on defaulting on its payments. The optimal current ratio is around 1.5, so 0.48 is considered low.

I will suggest your dad sell and keep his profits rather than take the risk.

Overvalued stock with sign of red flag somemore. Quality stock also can be way much better in term of metric ratios...

:s22:
 

JuzMobile

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Sorry to side track,
But was just reading this article on Trump building the wall, and a paragraph made me laugh :s13::s13::s13::s13::s13:
so just sharing

"Experts have voiced doubts about whether a wall would actually slow illegal immigration, or if it is worth the billions it is expected to cost.

“I suspect that a lot of Trump supporters would be just as happy with a big statue of a middle finger pointed south,” said Congressman Luis Gutierrez.

“Both are about equally effective as national security strategies.”"


Here's the link to the whole article.
http://www.straitstimes.com/world/u...na-nieto-should-cancel-visit-if-they-wont-pay
 

yihao93

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My dad has been losing quite a lot of money in sgx market.
His trading strategy is to buy s-chip and hold. Needlessly to say, its a bad trading strategy; many of his stocks has been delisted. Occasionally, he lose money in genting sp, tigerair etc.
In summary, he isnt a good investor.

However, he has 50k share in Poh Tiong Choon Logistics Ltd (P01.SI) which he bought years ago. Presuming he bought before 2010, it was priced $0.2 back then and now $1.39. It rose sharply on sep2016, which is odd.

Based on my research, the company have good fundamental, there's potential for further growth. But I think that getting blue chip is better for his style of investment.

I feel that cashing out now and invest in a stable blue chip is a wise choice, but I dont want to make a bad investment decision. Any sifu can advise on this stock?

Suspicious lei
U doing stock competition is it
 

MasterLeong

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ML, where do u learn all those ratios and values to state your personal opinion on a company fundamentals?

Reading investing books, read a lot a lot of books
After that you will have a better idea how on what numbers to look at and how to value companies
 

RiceGrain

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Suspicious lei
U doing stock competition is it

nope, its my dad's hard earned money
~88k sgd worth of stock , barely recover his losses throughout his investment journey

thanks everyone for the analysis, he queued at 1.39, the stock slowly slip down to 1.385 :s22:, dam hard to sell a low volume stock
 

yihao93

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nope, its my dad's hard earned money
~88k sgd worth of stock , barely recover his losses throughout his investment journey

thanks everyone for the analysis, he queued at 1.39, the stock slowly slip down to 1.385 :s22:, dam hard to sell a low volume stock

Just take market price
7 bagger that few cents no one cares
 

ChoiSeungHyun

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nope, its my dad's hard earned money
~88k sgd worth of stock , barely recover his losses throughout his investment journey

thanks everyone for the analysis, he queued at 1.39, the stock slowly slip down to 1.385 :s22:, dam hard to sell a low volume stock

just sell abit lower to cash out la
 

RiceGrain

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From 20 cents to $1.39 is about 7-bagger winner which is very good...I think most pple will just take profit without thinking...:s22:

He's a stubborn man, I warned him against genting sp when it was ~2.10

He FIFO a couple time during the bullish period and made few grands and re-entry at 2.17 (IIRC) and didn't sell when it dips, Current paperlose at 30k:(

Its not easy to convince a stubborn man to sell a profitable stock.

It is evident that his investment strategy is like playing lottery (or tikam), picking all the "high growth potential " penny stocks and hoping that they will grow

Back then, I was too young to get involved in stock market. Now I am trying to cut his losses and hopefully rebuild to a profitable portfolio
 
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