Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
BB, The total return for Coastal in the last few years as shown in your spreadsheet is phenomenal! All its growth figures are in the middle or upper tenths. Profitabilities, ROIC, ROE are in the 20%+ and 30%+. However, in contrary to Padini, Mr Market does not give it a fair valuation. Its PER is about 5 only. Poor inventory turnover? Erratic cash flow? Or other reasons? Would you or anybody like to comment?
Here is an excellent article on understanding PE ratio.
Coastal has grown from a small company to its present form. It was first highlighted in the Fortune 500 as a promising small cap company. It has grown its business steadily.
Search my blog for Coastal. I have written a few times on this stock before.
The market price of Coastal can be very volatile. You should track its business. The present economic downturn may be a challenging time for Coastal, although the CEO is optimistic that new orders will be forthcoming as new ships needed to be built to service the offshore rigs that are now placed in deeper water further from the coast. Its location in Sabah is well placed to benefit from newly discovered oil fields off the coast of Borneo.
BB, The total return for Coastal in the last few years as shown in your spreadsheet is phenomenal! All its growth figures are in the middle or upper tenths. Profitabilities, ROIC, ROE are in the 20%+ and 30%+. However, in contrary to Padini, Mr Market does not give it a fair valuation. Its PER is about 5 only. Poor inventory turnover? Erratic cash flow? Or other reasons? Would you or anybody like to comment?
ReplyDeletehttp://myinvestingnotes.blogspot.com/2010/04/understanding-intricacies-of.html
ReplyDeleteHere is an excellent article on understanding PE ratio.
Coastal has grown from a small company to its present form. It was first highlighted in the Fortune 500 as a promising small cap company. It has grown its business steadily.
Search my blog for Coastal. I have written a few times on this stock before.
http://myinvestingnotes.blogspot.com/2009/06/coastal.html
The market price of Coastal can be very volatile. You should track its business. The present economic downturn may be a challenging time for Coastal, although the CEO is optimistic that new orders will be forthcoming as new ships needed to be built to service the offshore rigs that are now placed in deeper water further from the coast. Its location in Sabah is well placed to benefit from newly discovered oil fields off the coast of Borneo.