TRIPLC 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 third stock I wish to select for second half of 2013 is TRIPLC. 

My trading plan 
This stock is an up trending stock (daily, weekly and monthly chart). 
The stock price was hitting all times high at 1.91 on 24/7/2013. Currently, the price goes through a correction and closed at 1.70 on 1/8/2013. 
Major resistance is 1.91. 
Major support is 1.30. 
Target price = 4.02 
Margin of safety = 58% 
Potential profit gain = 138% 
Cut loss at 1.27 = 25% 
Risk reward ratio at 1.27 cut loss = 1 : 5.55 

Technical Chart. 
A very nice up trending chart formed. There will be a good chance to hit our target price if the major resistance at 1.91 is crossed. 

Disadvantage 
The volume is very low, it is very difficult to buy big. 

Strategy 
The best strategy is to buy it and walk away for a while. You need holding power on this stock. 

Conclusion 
Recommend to buy at 1.69 on 2/8/2013. 

Intrinsic Value calculation had been done before in this forum, I will copy and paste it here later.

Posted by Ooi Teik Bee at Aug 2, 2013 03:30 PM

Dear valued members, 

When I post this stock in this forum, the price is at 1.74. All intrinsic value calculation remain unchanged except I buy it at 1.69 on 2/8/2013. 

Triplc IV Calculation

Total Net Profit Years 7/10
Total Positive Operating Cash flow Years 6/10
Total Dividend Payout Years 0/10
Total Positive free Cash flow Year 6/10
19/40

Growth%
10 Years Average Turn Over 142044
Latest 4 quarters 172324 21.32%

10 Years Average Net Profit -3409
Latest 4 quarters 29320
 

Price CAGR % (Buy and Hold)
Average Return History -9.16%
3 yrs Return 111.09%

Method 1
EPS 0.46
g 10.00
Y 7.0
IV= (EPS*(8.5+1.5g)*4.4)/Y = 6.77
Current price 1.12
Margin of Safety 83.44%
Potential gain 504.05%

Method 2
Discounted Cash Flows Calculator
Discount rate 12.00%
EPS 0.46
Earning expected to grow (annually) = 7.7
for the next (? Years) 3.0
before leveling off to an annual growth 3.00
Calculate Stock Value per share 6.32

Current price 1.74 

Margin of Safety 72.47%

Method 3
ROE 29.17%
Rr 8.00%
NTA 1.57
IV= ROE/ Rr*NTA = 5.72
Current Price 1.74
Margin of Safety 69.60%
Potential gain 229.00%

Method 4
(22.5*EPS*Book value per share)^0.5
EPS 0.46
Total equity 100524
Number of shares 64022
(22.5*EPS*Total Equity/share)^0.5 = 4.02
Current price 1.74
Margin of Safety 56.74%
Potential gain 131.18%

Thank you. 
Ooi