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..
