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With reference to CityFarmer's post on this thread of earlier today.......
I would respectfully disagree that Cheung Woh is currently over-valued. Cheung Woh's recent FY 2012 results were adversely impacted by the four-pronged "perfect storm" of i) Thailand's floods + ii) the Japanese Tsunami + iii) the high profile Bankruptcy of a key high volume customer (Solyndra) + iv) (accounting) FE losses arising during the drawn-out Chinese approval process of Cheung Woh's Tysan portfolio action.
Readers of this particular VB thread will recall that, prior to these almost-simulataneous events, Cheung Woh typically traded on a low single digit P/E ratio. I suspect that once the impact of this "perfect storm" is broken out, the value that Mr. Market currently puts on Cheung Woh will be seen to be on the low side. Two other realities, in addition to the low-debt point that you mention CityFarmer, lead me to this conclusion, i.e. .......
a) the recent (proposed) dividend announcement, i.e. including special dividend arising from last (financial) year's Chinese portfolio action, corresponds to a dividend yield exceeding 7% at the current share price. Hardly the pay-out of a struggling over valued company!
b) the confidence that Cheung Woh's BoD has demonstrated in the company's prospects by virtue of its sustained high volume share buy-back campaign - amongst other positive outcomes of this is the "effective floor" (at S$ 0.18 per share) that has been put under Cheung Woh's share price.
I would bet that Cheung Woh will likely eventually be seen as one of those cases where reading too much into (and making investment decisions based on) a short term "snapshot P/E ratio" leads to the wrong conclusions. On another VB thread, one forummer asked "has anyone ever made money from a P/E 100 share?". Lets watch what Cheung Woh does in the coming year or so.
There have been some insightfull posts made by other forummers on this particular VB thread....... I would encourage interested forummers to review some of dydx's earlier posts on this VB thread - particularly the 22nd December 2011 post. For a very good, more skeptical piece, I would suggest D123's 9th September 2011 posting is worth the read.
Time will tell...................
Vested.
I would respectfully disagree that Cheung Woh is currently over-valued. Cheung Woh's recent FY 2012 results were adversely impacted by the four-pronged "perfect storm" of i) Thailand's floods + ii) the Japanese Tsunami + iii) the high profile Bankruptcy of a key high volume customer (Solyndra) + iv) (accounting) FE losses arising during the drawn-out Chinese approval process of Cheung Woh's Tysan portfolio action.
Readers of this particular VB thread will recall that, prior to these almost-simulataneous events, Cheung Woh typically traded on a low single digit P/E ratio. I suspect that once the impact of this "perfect storm" is broken out, the value that Mr. Market currently puts on Cheung Woh will be seen to be on the low side. Two other realities, in addition to the low-debt point that you mention CityFarmer, lead me to this conclusion, i.e. .......
a) the recent (proposed) dividend announcement, i.e. including special dividend arising from last (financial) year's Chinese portfolio action, corresponds to a dividend yield exceeding 7% at the current share price. Hardly the pay-out of a struggling over valued company!
b) the confidence that Cheung Woh's BoD has demonstrated in the company's prospects by virtue of its sustained high volume share buy-back campaign - amongst other positive outcomes of this is the "effective floor" (at S$ 0.18 per share) that has been put under Cheung Woh's share price.
I would bet that Cheung Woh will likely eventually be seen as one of those cases where reading too much into (and making investment decisions based on) a short term "snapshot P/E ratio" leads to the wrong conclusions. On another VB thread, one forummer asked "has anyone ever made money from a P/E 100 share?". Lets watch what Cheung Woh does in the coming year or so.
There have been some insightfull posts made by other forummers on this particular VB thread....... I would encourage interested forummers to review some of dydx's earlier posts on this VB thread - particularly the 22nd December 2011 post. For a very good, more skeptical piece, I would suggest D123's 9th September 2011 posting is worth the read.
Time will tell...................
Vested.
(08-06-2012, 11:33 AM)CityFarmer Wrote: I am talking a quick peek into Cheung Woh Technologies. The ID in SGX is CheungWoh, instead of CWT. CWT is another logistic company
The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100. Probably due to temporary depressing factors?
With margin in single digits and PE about 100, i am pretty sure it is over-value now.
The plus points are high dividend annual yield of 7%, low long-term debt, and low PB
Please highlight if i miss out any important points.
RBM, Retired Botanic MatSalleh