Latexx

Date announced 10-Nov-10
Quarter 30/09/2010 Qtr 3
FYE 31/12/2010

STOCK LATEXX
C0DE 7064

Price $ 2.78
Curr. PE (ttm-Eps) 7.32 Curr. DY 0.72%
LFY Div 2.00 DPO ratio 7%
ROE 35.5% PBT Margin 15.5% PAT Margin 13.6%

Rec. qRev 129878 q-q % chg -3% y-y% chq 61%
Rec qPbt 20168 q-q % chg -16% y-y% chq 41%
Rec. qEps 8.19 q-q % chg -21% y-y% chq 12%
ttm-Eps 37.96 q-q % chg 2% y-y% chq 76%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5%
Avg.H PE 8.00
Avg. L PE 6.00
Forecast High Pr 3.88 Forecast Low Pr 2.40 Recent Severe Low Pr 2.40

Current price is at Lower 1/3 of valuation zone.
RISK: Upside 74% Downside 26%
One Year Appreciation Potential 8% Avg. yield 1%
Avg. Total Annual Potential Return (over next 5 years) 9%

CPE/SPE 1.05
P/NTA 2.60
NTA 1.07
SPE 7.00
Rational Pr 2.66


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