MasterLeong
Banned
- Joined
- Nov 27, 2016
- Messages
- 5,754
- Reaction score
- 0
sometimes I wonder if we should not read too much into ratios like PB? for example FCL.... current PB ratio is 0.67, NAV over price is 2.67. That equates to: at the current price of $1.53, one will be getting $2.28 worth of book value and $4.08 worth of NAV. How come those BB and funds not all rushing into it?![]()
property stocks are cyclical
now is down cycle so some industries like property/commodities/marine are all trading at below book value
this is because investors expect these companies to generate low to negative returns
companies that can generate high returns, example sheng shiong/rmg will trade at way above book value


