above is the preview summary...
CCK is one of my main holding which is 34% of my portfolio...
its in food sector...this is why i invest on it...
small company...hence moving slower than index~beta <1
good fundamental...
its been trading at the range of 0.2++ to the max around 1.2.
1st bought it in during 2009.
its price to book value move around 0.8
which is kinda undervalued...
graham taught us not to pay high price which is overvalue from its book value...
its a safety margin for us if we buy at price to book value below 1...
but not all industry tend to have price to book value around 1...
high BETA industry such as finance,property and oil&gas tend to have higher price to book value...
most of them can be consider cheap when approaching price to book value around 1.5-1.75...
PE since 10 years ago...
it is trading at a PE of 10 most of the time...
compare with KLCI currently~PE of 15...
anything below PE of 10 seems cheaply priced...
current PE around 8-9 is kinda comfortable or relatively safe...
investing in CCK cant expect of EXCITING return in a year...
its share price tend to move slow and steady...
anyone purchase 2 years ago...u gain 22% so far...
normal DY is around 3.5% (slightly higher than our FD rate)
please take into consideration of the treasury share and its ability to give out special dividend once in 2 to 3 years...
lastly,
let see some of the major ratio and justify whether Tiong family did they work well or not...
ROE get back on the ground 10 well...12.49% last year.
net margin is around 4%...
this will get better when its prawn biz get better!!!
CCK is expanding its most profitable biz currently~RETAILING!!
1 dragon services...thats good...
the best part is!!!
good cashflow...
cashflow over sale is 6.45 last year...an average more than 5.5!!
thats why CCK managed pay back quite alot of its debt!!
inventory turnover getting faster...
expanding the retail arm will increase the speed even more...
i quite confident that CCK will do some expansion on its poultry biz soon too...
too make sure its supply can meet the demand all over its retail stores...
its debtor pay back the credit in faster pace...
good for CCK's cashflow!!
debt ratio is deceasing and yet sales increased!!
we did some calculation on the cash ratio last time...
it is well above 1...
to summary it up...
CCK~cash rich,strong cashflow,normal to good dividend(depend whether got special dividend or not),low debt,still growing,low PE and price to book value...
i consider CCK as a good stock for LONG TERM!!!
its the best performer in my portfolio!!
will hold it til its rust!!
**all the information are collected from DATASTREAM (SHU got 1 license for 1 PC in the library only)
DATASTREAM is one of the major database software used in finance industry!!!
so grad i can use it for FREE!!!
No comments:
Post a Comment