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PE, NAV AND YIELD Post Reply Rate topic
Hulumas Supreme	15-Sep-2010 11:43        Hulumas About Contact  Quote this Post! Style: Flexible   Mood: Yells: "INVEST but not TRADE please!"
x 0   x 0  Alert Admin	I took some profit yesterday. shplayer      ( Date: 01-Oct-2007 19:59) Posted: salute, TA is Technical Analysis. This is the practice of chart reading to determine entry and exit of a stock. Time invested in a particular stock is usually quite short term....a few weeks at the most. FA is Fundamental Analysis. This involves reviewing the company's financials, its business model, the business/econmic environment of its business, the management etc. Investments with FA tend to take a longer term view of things. BB - Big Boys........they are the fund managers, the syndicates, the major shareholders etc.......anyone who has deeeeeep pockets to play the market. TP - Target price.......usually given by analysts in their reports......but use this with caution. Usually when the reports are made public, the BBs have already taken their positions and may even be unwinding their positions (if the call is a 'buy') or have already sold if the call is 'sell'. Terraseeds......think its some course conducted on how to invest. I am not familiar with it and perhaps other forumers may enlighten you.
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shplayer Elite	01-Oct-2007 19:59        shplayer About Contact  Quote this Post!
x 0   x 0  Alert Admin	salute, TA is Technical Analysis. This is the practice of chart reading to determine entry and exit of a stock. Time invested in a particular stock is usually quite short term....a few weeks at the most. FA is Fundamental Analysis. This involves reviewing the company's financials, its business model, the business/econmic environment of its business, the management etc. Investments with FA tend to take a longer term view of things. BB - Big Boys........they are the fund managers, the syndicates, the major shareholders etc.......anyone who has deeeeeep pockets to play the market. TP - Target price.......usually given by analysts in their reports......but use this with caution. Usually when the reports are made public, the BBs have already taken their positions and may even be unwinding their positions (if the call is a 'buy') or have already sold if the call is 'sell'. Terraseeds......think its some course conducted on how to invest. I am not familiar with it and perhaps other forumers may enlighten you.
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Salute Master	01-Oct-2007 19:16        Salute About Contact  Quote this Post!
x 0   x 0  Alert Admin	Bonsoir shsplayer, Thank you for your explanation. Hope you have a lucrative day today. By the way, may I learn some abbreviation terms from you. I guess TA means target price. What does FA and BB mean. I saw someone mention about Terre...something TA technical analyst, may I know where can one learn about it.
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shplayer Elite	30-Sep-2007 19:03        shplayer About Contact  Quote this Post!
x 0   x 0  Alert Admin	salute, NAV is the net asset value of the company. When used in P/B (price to book) ratio, it indicates to me the premium/discount I am paying for the stock. However, you need to pay attention to to how the company calculates is NAV. e.g. part of the assets of a company A  may be another listed company B....the NAV is usually based on the cost it paid for B. If the market price for B is higher, then the 'market' NAV would be higher than stated. Another example is if the asset (e.g property) of the company has not been revalued but has been depreciated, and market value of the property has appreciated, then the NAV is also understated. YIELD I use this as a measure against  my opportunity cost of funds. e.g If using CPF, do I get > 2.5% yield (net of tax). For those using margins, they will measure against cost of their margin interest. This is just some of the pesonnal yardsticks I use in valuing stocks. Cheers !!!
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shplayer Elite	30-Sep-2007 18:36        shplayer About Contact  Quote this Post!
x 0   x 0  Alert Admin	salute, For me, I use P/E as an indication of ROE expected of the Company at the price I pay for it. This has to be balanced with the expected growth of the Co. For example, if the Co. is expected to maintain a consistent earning (i.e. 0 growth), then if you buy at P/E of 10X, it will take 10 yrs for the Co. to earn back what you paid for it. Your ROE is 10 yrs. But, if the growth is expected to be at 15% (compounded annually), then a P/E of 10X will give you an ROE of < 7 yrs. By my estimate, for cos trading at P/E of 50X, and if your investment target is for an ROE of <10 yrs, the annual compounded growth need to be about 33%. This is of course all hypothetical as things are never constant. Personally, as an FA practioner, I am wary of these high P/E stocks. Hope this helps.
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Salute Master	30-Sep-2007 15:24        Salute About Contact  Quote this Post!
x 0   x 0  Alert Admin	pardon me if this is too basic a question to those veteran investors. I thought a good share should be one that has PE(price to earning) not to high, with a good yield rating. While I recongised that Midas is in a booming industry in China, but when it's price was at $1.46 on 14/09/07, it's PE was 47.4 , yield only 1 and  NAV was only $0.211. Raffles Education is said to be a good counter, but when it's price was at $2.28 on14/09/07, it's PE was 52.2, yield 1.8 and NAV was $0.151. When are people still not worry about it. Does it mean that you are find that it's still worth to buy the shares as their future is so fantastic that it's worth paying that high price even if it's 47 times or 52 times their earnings.
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