Boustead

Date announced 23/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK BSTEAD
C0DE  2771 

Price $ 5.87 Curr. PE (ttm-Eps) 10.86 Curr. DY 2.49%
LFY Div 14.64 DPO ratio 36%
ROE 12.5% PBT Margin 13.0% PAT Margin 10.3%

Rec. qRev 1425000 q-q % chg -8% y-y% chq 12%
Rec qPbt 185900 q-q % chg 38% y-y% chq 127%
Rec. qEps 15.68 q-q % chg 61% y-y% chq 204%
ttm-Eps 54.04 q-q % chg 24% y-y% chq 28%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 9.00 Avg. L PE 6.00
Forecast High Pr 6.21 Forecast Low Pr 3.38 Recent Severe Low Pr 3.38
Current price is at Upper 1/3 of valuation zone.

RISK: Upside 12% Downside 88%
One Year Appreciation Potential 1% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 5%

CPE/SPE 1.45 P/NTA 1.35 NTA 4.34 SPE 7.50 Rational Pr 4.05



Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr