Dear Ooi, i take that statement from 1 of the news. anyway its up to investor to invest their money. i believe in pantech. with new TP from rhb and kenanga, hopefully the prediction will bring smthg good.
Watching its buying tempo during its final second closing enhance my belief it will steadily going up either tomorrow or Monday the latest. Hope I'm right.
Well bear in mind that today there will be msia export data coming out at 12. Market is expecting the data to be bad hence it might cause a selloff in the equity. Tonight there's a very important data from US which is the non-farm payroll. Most fund managers will stay at the sideline until the result is out.
It is not a recommendation to buy, I just want to show the intrinsic value of Pantech. I had done it when Pantech is 0.95 and its warrant is 0.49. Now the Pantech had crossed 1.00, it is a good chance to hit my target price. Please give your comment.
Pantech IV Calculation
Total Net Profit Years 7/7
Total Positive Operating Cash flow Years 5/7 Current Price 0.95 Total Dividend Payout Years 6/7
Total Positive free Cash flow Year 4/7 22/28 Growth% 7 Years Average Turn Over 317987 Latest 4 quarters 637160 100.37%
7 Years Average Net Profit 36382 Latest 4 quarters 55003 51.18%
Price CAGR % (Buy and Hold) Average Return History 6.28% 3 yrs Return 15.43%
Method 1 EPS 0.12 g 7.72 Y 7.0 IV= (EPS*(8.5+1.5g)*4.4)/Y 1.50 Current price 0.95 Margin of Safety 36.59% Potential gain 57.70%
Method 2 Discounted Cash Flows Calculator Discount rate 12.00% EPS 0.12 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 1.55 Current price 0.95 Margin of Safety 38.71% Potential gain 63.16%
Method 3 ROE 14.60% Rr 8.00% NTA 0.74 IV= ROE/ Rr*NTA 1.35 Current Price 0.95 Margin of Safety 29.66% Potential gain 42.16%
Method 4 (22.5*EPS*Book value per share)^0.5 EPS 0.1187 Total equity 376747 Number of shares 516167 (22.5*EPS*Total Equity/share)^0.5 1.40 Current price 0.95 Margin of Safety 31.96% Potential gain 46.97%
Warrant
Pantech-WA Expiration date 2020 Exercise price 0.60 Price of Mother share (Pantech) 0.95 Intrinsic value of WC 0.32 Actual price of WC 0.49 Premium or Discount 14.74 Gearing 1.94
Conclusion If the price of Pantech is 1.35, the price of Pantech-WA should be (1.35 - 0.60) = 0.75. If it is trading at 20% premium, the price of Pantech-WA should be (0.75*1.2) = 0.90. Potential gain = (0.90 - 0.49)/0.49*100 = 84%.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Kmtan
30 posts
Posted by Kmtan > 2013-07-04 00:05 | Report Abuse
Dear Ooi, i take that statement from 1 of the news. anyway its up to investor to invest their money. i believe in pantech. with new TP from rhb and kenanga, hopefully the prediction will bring smthg good.