Best World

It reaches the high of 40cents so far today.... GO GO GO.... half way mark to 90cents is only slightly more than 10% more...

While i believe that it is still undervalued.... 40% return in 1 month is too good for me... decide to take some profit while still keeping bulk of the holding....:laugh:

erelation wrote:

While i believe that it is still undervalued.... 40% return in 1 month is too good for me... decide to take some profit while still keeping bulk of the holding....:laugh:

I\'m sure it is still undervalued if it can maintain Q4 result into FY10....but again, to be a great company, they still need to let investors know what they plan to do with the 36m cash. More upside expect if they provide more infomation on their plan with the 36m CASH!!

20th anniversary special dividend??? Based on 39.5 c yesterday, Best World\'s div yield is 5.57%, a decent return which I expect the company to maintain. It has been paying 2.2 cents div a share in 2008 and 2009. With its 20th anniversary celebration in June this year, I expect it to give a special div (just my guess - after all, it can afford it with its $36 m cash hoard). So, brother bestworld, that\'s my answer to yr postings on \'what are they going to do with the cash?\'. Taking out the Net Cash/share of $0.1808 from $0.395, Best World\'s operating business is valued at ......21.42 cents a share divided by EPS of 4.69 cents = PE ratio of 4.57X only. Let\'s peg the fair value at just 5X conservatively. That will gv us a stock price of .....43 cents.

Let\'s use the same methodology on China Gaoxian Fibre.... FY09 EPS RMB 33.7 cents (6.88 cents) FY10 Cash per share RMB 46 cents (9.4 cents) Using S$1 = RMB$ 4.9 Share price = 18.5 cents Share price exclude cash on hand = 18.5 - 9.4 = 9.1 cents PE = 9.1 / 6.88 = 1.3x PE (excluding cash) Is this a good buy with aggressive capex and capacity expansion for FY10/11 which expect to bring in profit growth. A profitable business with annual profit of $83 million valued by market at ONLY 1.3x PE

Harlequin wrote:

20th anniversary special dividend??? Based on 39.5 c yesterday, Best World\'s div yield is 5.57%, a decent return which I expect the company to maintain. It has been paying 2.2 cents div a share in 2008 and 2009. With its 20th anniversary celebration in June this year, I expect it to give a special div (just my guess - after all, it can afford it with its $36 m cash hoard). So, brother bestworld, that\'s my answer to yr postings on \'what are they going to do with the cash?\'. Taking out the Net Cash/share of $0.1808 from $0.395, Best World\'s operating business is valued at ......21.42 cents a share divided by EPS of 4.69 cents = PE ratio of 4.57X only. Let\'s peg the fair value at just 5X conservatively. That will gv us a stock price of .....48 cents.

You have insider information or simply guessing? A great and good company will be willing to share and sell their plan with investors! Did the management told you that is how the 36m cash to be used for?