STOCK LPI
C0DE 8621
Price $ 11.5
Curr. PE (ttm-Eps) 18.51
Curr. DY 3.67%
Rec. qRev 216952 q-q % chg 15% y-y% chq 5%
Rec. qPbt 47445 q-q % chg 32% y-y% chq 11%
Rec. qEps 16.85 q-q % chg 40% y-y% chq 13%
ttm-Eps 62.13 q-q % chg 3% y-y% chq 11%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 4%
Avg.H PE 17.00
Avg. L PE 13.00
Current price is at Middle 1/3 of valuation zone.
RISK: Upside 37% Downside 63%
One Year Appreciation Potential 2% Avg. yield 5%
Avg. Total Annual Potential Return over next 5 years 7%
CPE/SPE 1.23
P/NTA 2.31
SPE 15
Rational Pr 9.32
(CPE = Current PE, SPE = Signature PE)
Spend so much time for the numbers, so what is conclusion /decision ??
ReplyDeleteBuy /Hold /Sell ?
Muhaiddin
Anonymous,
ReplyDeleteI can only speak for myself. I look for great company. LPI is in my list of great companies.
It is trading at its fair price presently. Since I already have this stock, I will continue to hold for the longer term. I believe this company has durable competitive advantage, as evidenced by its strong performances over many years and its strong relationship with its related sister company, Public Bank Berhad.
Its CPE/SPE is 1.23, that is 23% above its fair value. At the present price, the upside/downside risk ratio and the return aren't that appealing, therefore, I will not buy now.
However, I will keep this stock in my radar screen and hope to acquire more should the price be 'right'.
As to selling this stock, well, I wouldn't consider this presently. Maybe, I would be tempted to do so if the stock is very overpriced. What is overpriced? Well, when the CPE/SPE is greater than 1.5. However, this is such a great stock, perhaps, I do not need to worry about selling for a long while yet.
Regards