CSE Global

More
29 Mar 2014 19:03 #19518 by sykn
Ha ha, the intrinsic value, of course depends on the assumptions you put into the calculations in the first place, and is no rocket science. I used DCF on Owner's Earnings (OE) as Warren Buffett defines it, with OE based on 4 years' growth at a rate of 9% (already quite conservative if you look at its track record over the last 5 years), and then growing at 3% to perpetuity. That gives me a value of $1.21. But of course, you can also look at what the analysts at CIMB and OCBC calculated which come to $0.64. I personally think that their calculations are too pessimistic because the rate of CSE's cash generating ability remains the same after its sale of Servelec even though its equity base is reduced by around 30%. Once they land with a few more projects in FY14, I believe that its earnings will fly, but that is my humble opinion. Of course, being a newbie, I am open to criticisms to help me improve on my own analysis.

Please Log in or Create an account to join the conversation.

More
29 Mar 2014 22:11 #19520 by divads

sykn wrote: Ha ha, the intrinsic value, of course depends on the assumptions you put into the calculations in the first place, and is no rocket science. I used DCF on Owner's Earnings (OE) as Warren Buffett defines it, with OE based on 4 years' growth at a rate of 9% (already quite conservative if you look at its track record over the last 5 years), and then growing at 3% to perpetuity. That gives me a value of $1.21. But of course, you can also look at what the analysts at CIMB and OCBC calculated which come to $0.64. I personally think that their calculations are too pessimistic because the rate of CSE's cash generating ability remains the same after its sale of Servelec even though its equity base is reduced by around 30%. Once they land with a few more projects in FY14, I believe that its earnings will fly, but that is my humble opinion. Of course, being a newbie, I am open to criticisms to help me improve on my own analysis.


wow.. not bad .. I dun have the knowledge to calculate all these.. but with oil price getting higher (now pass $100), I think oil and gas sectors related stock will be the next in play...

Please Log in or Create an account to join the conversation.

More
30 Mar 2014 13:20 #19521 by SWN
I agree with what Sykn wrote as I am of the view that although the UK subsidiary is sold, the management team in Singapore does not change much and business should continue as before. In addition as the group is now debt free, they are in a better position should they need to borrow to fund future expansion.

Please Log in or Create an account to join the conversation.

More
31 Mar 2014 01:35 #19524 by divads

SWN wrote: I agree with what Sykn wrote as I am of the view that although the UK subsidiary is sold, the management team in Singapore does not change much and business should continue as before. In addition as the group is now debt free, they are in a better position should they need to borrow to fund future expansion.


If they dun intend to expand, then with the cash, they shd be able to declare higher dividends, ie: higher % of profit as dividends, since they dun need the cash..

Both ways, win-win for shareholders

Please Log in or Create an account to join the conversation.

More
02 Apr 2014 01:28 - 02 Apr 2014 01:28 #19534 by zane
Last edit: 02 Apr 2014 01:28 by zane.
The following user(s) said Thank You: sykn

Please Log in or Create an account to join the conversation.

More
02 Apr 2014 02:39 #19535 by sykn
Don't know him personally, but I always get a bit nervous whenever they change CEO or CFO. Having said that, I notice in the last half year or so, that CFO changes happen quite a few times for the counters I have been monitoring.

Please Log in or Create an account to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings3.080-0.030
AusGroup0.0260.002
Avi-Tech Electronics0.380-
Best World Int.1.360-
CEI0.8700.010
China Sunsine0.370-0.010
CNMC GoldMine0.205-
CSE Global0.430-
Food Empire0.505-
Golden Energy0.174-
GSS Energy0.0700.005
ISDN Holdings0.2450.025
ISOTeam0.1260.001
JB Foods0.490-
KSH Holdings0.3100.005
Medtecs Intl0.2550.005
Miyoshi0.027-0.002
Moya Asia0.0640.001
Nordic Group0.225-
Oxley Holdings0.2400.005
Procurri0.265-
REX International0.1540.014
Riverstone2.2200.030
Roxy-Pacific0.345-
Sing Holdings0.320-
SingMedical0.245-
Straco Corp.0.490-0.015
Sunningdale Tech0.945-
Sunpower Group0.450-0.005
The Trendlines0.1130.004
Tiong Seng0.152-
Uni-Asia Group0.5550.085
Yangzijiang Shipbldg0.930-0.005

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1434 guests and no members online