Coastal

Date announced 24/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK COASTAL
C0DE  5071 

Price $ 2.35
Curr. PE (ttm-Eps) 4.39 Curr. DY 1.28%
LFY Div 3.00 DPO ratio 7%
ROE 36.4% PBT Margin 35.0% PAT Margin 34.8%

Rec. qRev 138619 q-q % chg -2% y-y% chq 46%
Rec qPbt 48583 q-q % chg 13% y-y% chq 44%
Rec. qEps 13.32 q-q % chg 11% y-y% chq 43%
ttm-Eps 53.55 q-q % chg 8% y-y% chq 65%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 2% Avg.H PE 5.00 Avg. L PE 4.00
Forecast High Pr 2.96 Forecast Low Pr 1.90 Recent Severe Low Pr 1.90
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 57% Downside 43%
One Year Appreciation Potential 5% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 7%

CPE/SPE 0.98 P/NTA 1.60 NTA 1.47 SPE 4.50 Rational Pr 2.41



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