This is the new member in my value-stock portfolio
I bought Choobee at price of RM1.53 per share, which is equal to 68% of its net-working-capital (according to its Jun-2009 reports).
Other criteria of ChooBee:
- Low debt position. (according to its Jun-09 report, debt-equity ratio only 10%+)
- Continuous dividend payment for more than 10 years. (though net DY only around 3%）
- Low PE ratio (about 5.5 based on three years average EPS).
The negative part is, its has a high inventories and receivables level.
However, after comparing its figure in the past ten years, a found that Choobee's inventories and receivables are maintained at a stable level as compared to its revenue. And the figures from others steel companies also show that high inventories level is quite common in this industry.
Thus I think it's quite safe to invest in ChooBee..
1 comment:
Choo Bee is a good profit making company, BUT it's not a good stock to invest in for retail/minority investor.
The Management has neglected the minority investor all the years for not giving out a good dividend despite making good profits.
If u compare it to CSC, CSC is in the same industries, & it has rewarding the minority shareholder by giving out good dividend in last few years.
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