NTPM factory is just nearby my hometown, which is Nibong Tebal. Recommended by my friend who bought this stock sometime ago. Most of it products are used by us daily. Thus, I did the fundamental analysis on this company as showed below in this link below:
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Fundamental analysis:
Average PE, Premium Ratio and dividend yield is 5.4, 0.93 and 8.5% from 2003 to 2008 respectively. Fair attractive in term of premium ratio as it below 1. As of 4/28/09 trading price: RM0.335, which translate to PE of 6 and premium ratio of 1.16.
Here is the deal:
My purchase price for this stock is RM0.30 (PE of 5.5 & premium ratio of 1.03).
5 comments:
such fundamental ratios is good. but if we waiting for its price to go RM0.3 it might not happens. such analysis doesn't look into the growth potential of the stock. There are stories that data won't tell. for example, 2 new lines will start at NTPM in coming two months. This will suppose to boost up the revenue. so, what is the formula of the premium ratio? i can't see the formula in the google spreadsheet
Premium ratio = Share Price / Net Tangible Asset Per Share
it is arguable to use such a ratio as criteria of buying a stock.
Depend on what perspective or angle that you want to choose to value a company.
i won't use NTA related ratio for NTPM. in fact it shouldn't be used for many companies. firstly, NTA based approach can't judge its growth at all. in addition, there will be tonnes of bad lousy counters with high low stock price and high NTA. those NTA will be useless as most of them are not generating revenue. indeed there are many ratios to evaluate companies, but for this case, using the more commonly used ratio such as ROE, DY, EPSG, PE would be more meaningful
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