MY THOUGHT IN 'VALUE INVESTING'. 'LOW RISK HIGH RETURNS' '小刀锯大树'
bro, how do you estimate it's fair value? you sue PE or some other FA number or TA?
Hi CCdev,For Steel Mill, it's capital intensive & profits margin is low.That's why most of the Steel Counter are high in borrowing (except CSC)& their share's price is at unattractive low PE. We also hardly see their price near it's NTA, in fact, most of the steel counter traded at price 20-30% below their NTA.CSC's market price used to trade 45%-55% below NTA, because it's low profile management & inliquid volume.It has sudden alive when they announce 20sen dividend in Feb this year, their price has moving up from huge discount below NTA to almost 2.00.At price of 2.00, a valuation that equal to it's NTA, should be considered a very good price to se sell for a steel counter.
I see you at Horse's blog sometimes, think it's the same KC because analysis quite deep also. thanks and cheers, man!
No! It's not me, I did not participate in any other blog.Regards
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bro,
how do you estimate it's fair value? you sue PE or some other FA number or TA?
Hi CCdev,
For Steel Mill, it's capital intensive & profits margin is low.
That's why most of the Steel Counter are high in borrowing (except CSC)& their share's price is at unattractive low PE.
We also hardly see their price near it's NTA, in fact, most of the steel counter traded at price 20-30% below their NTA.
CSC's market price used to trade 45%-55% below NTA, because it's low profile management & inliquid volume.
It has sudden alive when they announce 20sen dividend in Feb this year, their price has moving up from huge discount below NTA to almost 2.00.
At price of 2.00, a valuation that equal to it's NTA, should be considered a very good price to se sell for a steel counter.
I see you at Horse's blog sometimes, think it's the same KC because analysis quite deep also. thanks and cheers, man!
No! It's not me, I did not participate in any other blog.
Regards
Post a Comment