GOB Stock Chart as at 16-08-2013

Dear valued members, 

You should be realistic about your goals. 

"In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten." Peter Lynch 

Disclaimer: Please be informed that the following mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser. Please buy at your own risk. Final decision is yours. 

The first stock I wish to select for second half of 2013 is GOB.

My trading plan 
This stock is an up trending stock (daily, weekly and monthly chart). 
Currently, the stock price is hitting almost all times high. 
Major resistance is 0.89 and 0.935. 
Major support is 0.695 and 0.62 
Target price = 1.67 
Margin of safety = 52% 
Potential profit gain = 108% 
Cut loss at 0.695 = 13% 
Cut loss at 0.62 = 22.5% 
Risk reward ratio at 0.695 cut loss = 1 : 8.3 
Risk reward ratio at 0.62 cut loss = 1 : 4.8 
Target price recommended by Kenanga is 1.23 

Technical Chart. 
A cup pattern was formed, we like to buy at the handle. Once a Cup and Handle formation is formed, the stock price can cross the pivot line at 0.89, the stock price will skyrocket to new high. There will be a good chance to hit our target price if the major resistance at 0.89 is crossed. 

Conclusion 
Recommend to buy at 0.80 on 31/7/2013. 

Below is the IV value of this stock (GOB). 

GOB IV Calculation 

Total Net Profit Years 6/10 

Total Positive Operating Cash flow Years 4/10 

Total Dividend Payout Years 1/10 

Total Positive free Cash flow Year 6/10 


Growth % 
10 Years Average Turn Over 128,599 108.74% 
Current 4 Quarters 268,434 

10 Years Average Net Profit -6,378 
Current 4 Quarters 30,359 
 

Price CAGR % (Buy and Hold) 

Average Return History -5.72% 
3 yrs Return 25.25% 

Method 1: Graham's 
EPS 13.35 
g, % 8.40 
Y 7.00 
IV= (EPS*(8.5+1.5g)*4.4)/Y 1.77 
Current price 0.80 
Margin of Safety 54.83% 
Potential Profit Gain 121.39% 

Method 2: Discounted Cash Flows Calculator 
Discount rate 12.00% 
EPS 0.13 
Earning expected to grow (annually) 8.4 
for the next (? Years) 3.0 
before leveling off to an annual growth 3.00 
Calculate Stock Value per share 1.71 
Current price 0.80 
Margin of Safety 53.22% 
Potential gain 113.75% 

Method 3 
ROE 12.03 
Rr, % 8.00 
NTA 1.11 
IV= ROE/ Rr*NTA 1.67 
Current Price 0.80 
Margin of Safety 52.08% 
Potential Profit Gain 108.66% 

Method 4: 
EPS 0.13 
Total Equity 252338 
NOSH 227338 
(22.5*EPS*BVPS)^0.5 1.83 
Current Price 0.80 
Margin Of Safety 56.19% 
Potential Gain 128.28% 

Special note to Mr Tan KW, 
Please put up this watchlist under your post so that no one can say that there is any manipulation. My price reference is at 0.80. 

Thank you. 
Ooi