CSE Global

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29 Mar 2014 19:03 #19518 by sykn
Replied by sykn on topic CSE Global
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.

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29 Mar 2014 22:11 #19520 by divads
Replied by divads on topic CSE Global

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...

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30 Mar 2014 13:20 #19521 by SWN
Replied by SWN on topic CSE Global
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.

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31 Mar 2014 01:35 #19524 by divads
Replied by divads on topic CSE Global

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

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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

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02 Apr 2014 02:39 #19535 by sykn
Replied by sykn on topic CSE Global
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.

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Share Prices

Counter NameLastChange
AEM Holdings1.080-0.010
Alliance Mineral0.170-0.003
Anchor Resources0.018-0.002
AusGroup0.029-
Avi-Tech Electronics0.2900.005
Best World Int.1.9300.090
China Sunsine1.2100.010
CSE Global0.520-
Food Empire0.545-0.005
Geo Energy0.177-
Golden Energy0.225-0.005
GSS Energy0.100-0.001
HMI0.550-
ISDN Holdings0.225-0.005
KSH Holdings0.545-
Miyoshi0.052-
Moya Asia0.088-
Nordic Group0.320-
Oxley Holdings0.300-
REX International0.078-0.002
Riverstone1.110-
Roxy-Pacific0.410-
Sing Holdings0.4050.005
SingMedical0.470-
Sino Grandness0.056-0.001
Straco Corp.0.780-0.020
Sunningdale Tech1.330-
Sunpower Group0.535-
The Trendlines0.085-0.003
Tiong Seng0.240-
Uni-Asia Group1.180-
XMH Holdings0.185-
Yangzijiang Shipbldg1.6000.010

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