Since the 2 major shareholders have just concluded an off markets deals of 10 million shares, I take it as they will unload the shares to open market through professional trader, therefore the share soon will break Rm 1.0, we just wait and see.
At 0.92, the enterprise value of Homeritz, EV =138.4mil. With TTM EBIT of 27.5mil, EV/EBIT = 5. According to Waren Buffett, if you happen to find an company with EV/EBIT < 7 then you probably found a good deal. If we equate EV/EBIT = 7, the corresponding share price is $1.2. Meaning that even at the price of $1.2, Warren Buffett will recommand a value buy call. So, what are yoy waiting for? 92sen sapu saja la.....
this is really good company. i do not intend to sell it even if reach my target price. hard to find companies which are fundamentally solid. unless it becomes overvalued den i will consider selling it.
The TP wil increase in tandem with the operating profit. So, how could the TP be exceeded? In fact we should keep buying from time to time when ever we got excess cash.
Yea this is gem in the making (or probably already one!!!), good record for past 4 years, compare against Hevea, Liihen, or Latitud, it holds better performance record, yet command such low value. Totally underrated. (BTW do correct me if I'm wrong in anything, open to all kind of suggestion and advice).
In 2014, Q1, Q2, Q3 profit respectively increased by 104%, 108%, and 48%. We assume last quarter profit only increased by 25%, debt and cash remain, EV/EBIT will be 4.75 with the price 0.92, If we equate EV/EBIT = 7, the corresponding share price is $1.28.
i do not like the sudden price movement upwards. prefer slow and steady. price must always be justified by numbers. dont be tempted to sell out even at high price. buy a company for its business value, not temporary price changes. cheers.
overall market dip due to oil price hike. more so we should invest in equity stocks to fight inflation. Cost will eventually by pass on to consumers sooner or later. while salary will remain the same.
The price go up last week due to the director changing their share but the price keep dropping and the director bought at price 0.95??? what he think when saw now 3pm 0.845
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....
PgCat
342 posts
Posted by PgCat > 2014-09-23 19:42 | Report Abuse
hope u guys make some quick bucks