Monday, April 30, 2018
Stock Watch : Benalac (code 5190)
Noon ... 11.50am ... nothing much, so I m in shopping mall to have coffee ...
Benalec is trading below 30cents at the moment, new low.
Question : Is it 'cheap' valuation? How do we value her?
Check the website ... go to investor-relations : check the "financial statement".
Got earn money or not? Ask this question ... if losing money companies, we are not interested to invest, logically.
EPS : from 2016 to 2017 .... dropped from 2.14 to 1.21.
Ok ... so, got earn money but dropped almost half. Ask .... WHY?
Next we check current ratio : 2.53 ...ok bah, boleh tahan.
Next ... check the cash flow ... oh boy, the CCE decreased by RM16mil, now left around RM9mil. This is no good ... red-flag ... ok, put pink-flag still positive-cash. Remember we have EPS dropped too ... so, these are no-good signs la.
Perhaps that explained why the stock is trading below 30cents?
Check KLSE-screener : PER at 39 level ... very high leh. So, another reason NOT to invest at current valuation.
So .... we put the list aside and not to check on her till NEXT quarter ... or beyond. We need to check if the cash would go into negative ... and if the EPS drops further.
Conclusion : Cannot invest in Benalec.