Posted by kcchongnz > May 28, 2013 08:44 AM | Report Abuse X

Is Gadang an excellent company? Is it a good investment? 

necro, I have no idea about Gadang before you mentioned to me. You know lah I am just a small time retail investor, not a big timer. Neither am I a fund manager. But Gadang does seem to stir up some interest of its stock movement recently, doesn't it? 

I just peeped through Gadang's past performance. It's performance has not been good until the last few quarters when trailing twelve month ROE just managed to skipped through 10%. So without knowing the company management, its future, I am not able to rate it as a good company. 

But is it a good investment? Maybe. As again I don't have any insider information about it. It may well be looking at the interest it seems to have created, or is it? But this strategy is about finding a good company, then only decide if want to invest. So I won't invest in it. Below is my assessment. 

Gadang a Good company?
Good governance ?
Durable business Neutral
Growth Neutral
ROTC Yes 11% >WACC 
Balance sheet Yes

Screens for investing
ROTC Yes
P/B Yes 0.7 <2.0 
PE ratio Yes 6.8 <20