Latest Forum Topics / Hiap Tong Last:0.08 -- | Post Reply |
Undervalued ?
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think2profit
Senior |
12-Jul-2013 11:55
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Look like highly oversold and may reverse any time. | ||||
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giganticmoney
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12-Jul-2013 11:09
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shares the same sentiment. Still holding 40 lots at 0.35 use cash to pick up already.
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aputako
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12-Jul-2013 10:40
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Not over yet. Gotta hold for a while. | ||||
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novice_trader
Elite |
12-Jul-2013 10:15
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Game Over... Top Volume for many days in Red Colour. | ||||
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giganticmoney
Member |
12-Jul-2013 09:54
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what happen? why the sudden drop? can still invest? | ||||
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SFGuyRuleZ
Veteran |
05-Jul-2013 18:07
Yells: "You are your own master.." |
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As for projected free cash flows, i do not wish to explain here as it involves certain understanding of fundamentals and can be misleading if discussed over here. However, it involves factors like profits, depreciation/amortization, income tax, finance income/expenses, adjustments for gain/losses on disposal, etc... As for how many years, I am sure when we talk about a business and as investment for long term, we assume that the business can go on for eternity. The number of years therefore I used is infinity leading to the formula => Summation Of Discounted Cash Flows from Future = [(current cashflow) x (1 +g)] / (r - g) , where g = growth rate and r is the yield. I always let g be default since I don't take into account growth rate. As for r, I always let it be 0.12 by default, but if the stock/ business is riskier, you can increase r, for higher risk = higher yield.   Coming up with the valuation of a stock only let you have an idea of what the price is like and whether you should enter or invest. However, fundamentals may change so it would be good to review on a quarterly basis. Also, the question is when will the stock reaches it's fundamental value?? To invest is more than just knowing the valuation of a company/ stock. Below are some pointers one can consider:   1)Debt to equity ratio   2)Industry/ Business Prospects Outlook   3)Average Volume traded   4)Is Discounted Cash Flow Valuation > Net Asset Value? 5)Targeted Market   6)Can company maintain it's revenue or profits? 7) Do most revenue for the year in the form of increase in trade receivables? Is it healthy? Why, etc... 8) Is order book equals or more than the yearly revenue taken into account for valuation? ...I like to share because stock research and investing is one of my interests. However, one should always do his/her homework and know his/her time horizon before investing. Don't anyhow buy or listen to anyone, including me, as we all have different risk appetites, time horizon, amount of capital, etc... Thanks and have a good weekend!! =)
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SFGuyRuleZ
Veteran |
05-Jul-2013 10:22
Yells: "You are your own master.." |
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Logically, if you invest in a business, it would only be reasonable if you also pay for the net assets so as to gain returns from the company. Discounted cash flows measure like how much value it can still bring from the future discounted to present value so u know how much it is worth today. So it would be logical to add them up to get a value u willing to pay for. But there are also times when you can pay a premium.. I shall stop here for now as my boss calling me.. lol
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salami
Member |
05-Jul-2013 09:30
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is it correct to add NAV with discounted CF to arrive at fundamental value? for your discounted CF, where did you get the projected cash flows of the company and for how many years...and at what WACC? care to share?  
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tea444u
Master |
05-Jul-2013 00:42
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thanks sfguy... will do..maybe i wait and see....
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SFGuyRuleZ
Veteran |
04-Jul-2013 23:11
Yells: "You are your own master.." |
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If based on fundamentals I believe in the future it can be worth a $0.5 stock. But currently this counter is rather speculated in my opinion, therefore kinda risky. If you have a long time horizon, it may still be good to hold. But if it's short-term, you may want to consult the sifus over at " Any Stocks also can discuss forum" . They may offer good technical advice. 
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tea444u
Master |
04-Jul-2013 23:03
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gosh guys...can still buy this one tomorrow if below 40?anyone please advise...thanks | ||||
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SFGuyRuleZ
Veteran |
04-Jul-2013 21:17
Yells: "You are your own master.." |
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It may because the capital they raise can be used to generate more growth and returns, but I wouldn't know how much and when. And anyway, I feel this stock currently is rather speculated and so may even rise higher. But $1, I think not. My target price is just $0.42. If hit then i will just unload my remaining le. Huat ah!!
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alvinngsh
Senior |
04-Jul-2013 21:09
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Just beware when goes above 40cents  it will still go further up. Till $1? ha ha ha |
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SFGuyRuleZ
Veteran |
04-Jul-2013 20:58
Yells: "You are your own master.." |
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I also unloaded half my lots at 0.355 le. This counter now abit risky, cuz has risen kinda too fast in my opinion..
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alvinngsh
Senior |
04-Jul-2013 20:47
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Hope tomorrow can hit 40cents so I can offload all if not have to wait till next week.. Huat la. | ||||
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SFGuyRuleZ
Veteran |
04-Jul-2013 19:34
Yells: "You are your own master.." |
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Assuming Tiong Woon can maintain it's current earnings and taking into account no growth (positive or negative), Net Asset Value / share = $0.5 Discounted cash flow valuation / share = $0.197. Fundamental value / share = $0.7 However, it's fundamental value mostly comes from it's NAV, making it slightly less attractive (according to market). However, it is undervalued. Investors can research more on this company and it's business prospects, industry and market before vesting..
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SFGuyRuleZ
Veteran |
04-Jul-2013 19:20
Yells: "You are your own master.." |
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If Hiap Tong can maintain it's earnings (assuming earnings are stable) and taking into account no growth (positive or negative), Net Asset Value / share ~=  $0.22 or $0.23 Discounted cash flow valuation / share ~= $0.17 Fundamental value / share ~= $0.4
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WanSiTong
Master |
04-Jul-2013 13:52
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HT Placement shares at 21.7 cents. Hopefully this stock will not be another Envir-Hub which climed from 8+ cents to 14+ cents  after the placement of shares. Last done today at 9.8 cents. |
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salami
Member |
04-Jul-2013 13:07
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how did you get 0.4??
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WanSiTong
Master |
04-Jul-2013 13:02
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This stock has been climbing from 10 cents  since  mid Dec 12. Net assets value (NAV) of HT is only 23.76 cents. Be cautious !! Similar nature Company Tiong Woon's NAV more than 50 cents, their share traded at 0.335 |
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