Ford Motor Company
Company Profile: http://www.investor.reuters.wallst.com/stocks/company-profile.asp?rpc=66&ticker=F
Ratios
http://www.investor.reuters.wallst.com/stocks/Ratios.asp?rpc=66&ticker=F
The CEO MULALLY ALAN R: Declared Holdings
http://biz.yahoo.com/t/18/3950.html
The DEBT to Equity Ratio 16.85. This is figure denotes that the company has a hugh debt and makes investing in this company very risky. But if you look at the balance sheet the long term debt has been decreasing
119,980 05
129,330 04
177,998 03
167,331 02
167,173 01
Analysis:
There is no PE ratio for the company because there is no earnings.
The Debt Equity Ratio is very High.
There are too many analyst looking at Ford. (Actually look for stocks which are not noticed much).
Playtex Products Inc. (PYX)
Analysis:
1.The PE ratio is very high. When the earnings is only 0.19 the price of the share is 13.4. thats not good.
2.The Debt/Equity Ratio is 4.27. Thats way too risky.
3. Profitability is another factor to look at. Its Profit Margin is only 1.86% when the operating Margin is 16.23%. Thats most because it has to payback its debt.
Wednesday, January 17, 2007
Wednesday, January 10, 2007
Aarthi Drugs LTD
Wednesday 10th january 2007:
This company's stock price has been decreasing for more than a year. Now It is priced at RS 75. The book value is Rs74.50. The earning per share is at Rs 10.67. After a decrease in operating margin it is at 12.4%. The OPM has actualy dropped 15% from the OPM five years ago. The ROE is 15%, 25% less than five year old ROE(20%). The market is very competitive and the margins are very low. The promtores hold 51% and the forgein holdings and Govt togather hold 10 %.
Pros
This company's stock price has been decreasing for more than a year. Now It is priced at RS 75. The book value is Rs74.50. The earning per share is at Rs 10.67. After a decrease in operating margin it is at 12.4%. The OPM has actualy dropped 15% from the OPM five years ago. The ROE is 15%, 25% less than five year old ROE(20%). The market is very competitive and the margins are very low. The promtores hold 51% and the forgein holdings and Govt togather hold 10 %.
Pros
- The company is paying Continuos dividend year after year.
- Continuous increase in EPS except for year 05.
- This business is generating a Net profit margin of a meagre 4.7 %.
- The Debt Equity ratio looks dangerous at 1.97. Last years figure was 1.73. The debt Equity ratio has been continously increasing from 1.28(Mar02).
- The inventories have risen to 62 crores from previous years 52 crores.
| Mar07 | Mar08 | Mar09 | Mar10 | Mar11 | Mar12 | Mar13 | Mar14 | |||
| ROE | 0.00 | 12.98 | 13.59 | 20.92 | 0.00 | 24.48 | 23.56 | 26.92 |
Saturday, January 06, 2007
Stocks I dumped (SOLD)
I alway try to make sure that I dump the stocks whose fundamentals does not look favorable. Some of the stock which I sold recently was Nava Bharat Ventures(Few shares) and MTNL. The reasons for selling was different.
Sold ONGC on the grounds that wonderful business managed by a government which cares less about the minority shareholders interest of adding value by putting burden of covering the loss of oil companies on its business. Should the interest of the shareholder come secondary to other stakeholders if not equal?
Sold ONGC on the grounds that wonderful business managed by a government which cares less about the minority shareholders interest of adding value by putting burden of covering the loss of oil companies on its business. Should the interest of the shareholder come secondary to other stakeholders if not equal?
Tuesday, January 02, 2007
AEONIAN Investment Company Ltd
Tuesday, 2nd January 2007:
The industry structure relevant to the Company's operations is mainly concerned with the Capital Market and to a lesser extent with the Mutual Fund Industry. The Company handles its investments in capital market mostly through reputed Portfolio Managers and to some extent on its own.
In order to increase the liquidity of Company's Equity shares in the capital market the Nominal Value of Equity shares of Rs.10/- each was sub - divided into Shares of Rs.2/- each with effect from 01.09.2005.
History:
Started in 1981. The promoters hold 86.96 percent.
Financias:
Market Price Rs 214
Face Value: Rs 2
Equity Capital: 0.96 Cr
The EPS is Rs 31.29 for Mar 06 and the book value is 129.79. The average net profit margin and the operating margin has been above 60% and 68 % respectively for 5 years.
The company has zero debt and the ROE for Mar 06 is 27 percent (last yeras was 20 percent).
The industry structure relevant to the Company's operations is mainly concerned with the Capital Market and to a lesser extent with the Mutual Fund Industry. The Company handles its investments in capital market mostly through reputed Portfolio Managers and to some extent on its own.
In order to increase the liquidity of Company's Equity shares in the capital market the Nominal Value of Equity shares of Rs.10/- each was sub - divided into Shares of Rs.2/- each with effect from 01.09.2005.
History:
Started in 1981. The promoters hold 86.96 percent.
Financias:
Market Price Rs 214
Face Value: Rs 2
Equity Capital: 0.96 Cr
The EPS is Rs 31.29 for Mar 06 and the book value is 129.79. The average net profit margin and the operating margin has been above 60% and 68 % respectively for 5 years.
The company has zero debt and the ROE for Mar 06 is 27 percent (last yeras was 20 percent).
DJS Stock & Shares Ltd
Tueday, 2nd January 2007:
This is a financial arm of LMW group. The promoters holding is around 83%. The Company has zero Debt.
Product Name Sales
Brokerage 1.92
Income from Trading 1.75
Interest 0.28
Dividend 0.07
Current Price is Rs 9.45. The Book Value for mar 06 is 20.52. The current ratio is 1.96 for mar 06 with current asset 13.92 crs. The companies has equity capital is 5 crs and reserves of 5.29 crs. The management says it does speculate in trading and since 50 % of its sales comes from brokerage, the price is Rs 9.45 is a bargain.
Note:
Saturday, 6th January 2007: This company comes in Z category and I am having difficulty in buying it. Actually the price has come down to 9.1 rs.
This is a financial arm of LMW group. The promoters holding is around 83%. The Company has zero Debt.
Product Name Sales
Brokerage 1.92
Income from Trading 1.75
Interest 0.28
Dividend 0.07
Current Price is Rs 9.45. The Book Value for mar 06 is 20.52. The current ratio is 1.96 for mar 06 with current asset 13.92 crs. The companies has equity capital is 5 crs and reserves of 5.29 crs. The management says it does speculate in trading and since 50 % of its sales comes from brokerage, the price is Rs 9.45 is a bargain.
Note:
Saturday, 6th January 2007: This company comes in Z category and I am having difficulty in buying it. Actually the price has come down to 9.1 rs.
Indian Toners & Developers Ltd.
20th November 2006 - Why we think you should buy Indian Toners & Developers Ltd. (Abstract)
Current price - Rs. 28
Potential price - Rs. 70.
ITDL is quite a find, if I say so myself. It's a company that is in a vertical with a fairly limited number of serious players - they make toners for printers, photo-copying machines etc. In fact, it is one of the largest in India. They also have a global presence - they currently have offices in UAE, Singapore and USA. They are planning a presence in China. They currently export to 29 countries across the globe.
Already, they can produce 1200 mt of toners a year - and in a couple of years, that capacity will be doubled.
Now, the numbers. The first thing that made me smile about their balance sheet was that ITDL is a debt-free company. This means that they can be more agile and risk-taking than similar companies that do have interest costs and associated operating risk. With a trailing EPS of Rs. 5.66, the trailing PE of the company is only 5.1 - this is excellent - definitely so when compared to the absurd valuations of companies like Hindustan Inks (Micro Inks). Next, they have a free-cashflow to enterprise-value ratio of about 4 - very attractive. Also, it has cash, reserves and cash-equivalents of about Rs. 8 a share - giving it a real price of only Rs. 20 a share.
Finally - some valuations. From a discounted cashflow point of view, if we assume a conservative growth of only 10% a year - this company is worth closer to Rs. 72 per share. If it grows even at 15% then this number is closer to Rs. 100 per share. This essentially means that the stock price can go up two to three times from its present value! Medium to long-term investors can start accumalating the stock right away.
Current price - Rs. 28
Potential price - Rs. 70.
ITDL is quite a find, if I say so myself. It's a company that is in a vertical with a fairly limited number of serious players - they make toners for printers, photo-copying machines etc. In fact, it is one of the largest in India. They also have a global presence - they currently have offices in UAE, Singapore and USA. They are planning a presence in China. They currently export to 29 countries across the globe.
Already, they can produce 1200 mt of toners a year - and in a couple of years, that capacity will be doubled.
Now, the numbers. The first thing that made me smile about their balance sheet was that ITDL is a debt-free company. This means that they can be more agile and risk-taking than similar companies that do have interest costs and associated operating risk. With a trailing EPS of Rs. 5.66, the trailing PE of the company is only 5.1 - this is excellent - definitely so when compared to the absurd valuations of companies like Hindustan Inks (Micro Inks). Next, they have a free-cashflow to enterprise-value ratio of about 4 - very attractive. Also, it has cash, reserves and cash-equivalents of about Rs. 8 a share - giving it a real price of only Rs. 20 a share.
Finally - some valuations. From a discounted cashflow point of view, if we assume a conservative growth of only 10% a year - this company is worth closer to Rs. 72 per share. If it grows even at 15% then this number is closer to Rs. 100 per share. This essentially means that the stock price can go up two to three times from its present value! Medium to long-term investors can start accumalating the stock right away.
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