Monday 10 June 2013

SBCCORP : If you have the patience to hold from 2Nov2011 till now

The below is what I have mentioned.

"FA
Intrinsic value = RM1.48 based on 25.8% growth (provided she can maintain this growth rate)
So, now at 36% discount."

At that time her price is RM0.94, and in just about 1.5 years, as of today she is price at RM1.60, a whopping price appreciation of 70% !!! . Remember I didnt even take into account of the dividend  Thats the beauty of buying a small size high growth stock, buying her in Nov2011 is very low risk, the only big risk is IF there is another global crisis where she may need to be tested on her cash flow.

Let see RM1.60 is above her intrinsic value as of her latest fiscal 2013 year EPS=32.48sen . She is still trading at a very low PE 4.9.  Based on 2012~2013, her growth is 12% , if she can maintain this growth, I upgraded her intrinsic value has jumped to RM2.04. Well, those who are holding since Nov2011, still have a reason to continue holding as she is still trading below her intrinsic value.

Technical, she give a buy signal today but the resistance of 10 year all time high is a point to take note 1.69. Lets she how she pans out in the coming months. 


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