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Wednesday, January 31, 2007

A Quick Analysis of 0 -10c stocks with PE under 10


Topic Discussion
I am going to start a series of articles that give my quick perspective on a number of stocks. They will be very brief but hopefully I give you a quick rundown on the stocks and why I would or would not look further into them.

The only criteria is that the stocks need to have a PE or 10 or less.

ASX:SCE - SunTech Environmental Group Limited - This is an investment company trading in China and Hong Kong. They are under tight regulatory restrictions due to the Chinese government and I don't see any major upside potential. Last report showed dramatic losses in profit. Decision : Not worth looking into further.

ASX:RMG - RMG Limited - This company is primarily a provider of receivables management services. RMG was initially formed by a merger of 22 Australian and New Zealand companies to create a major regional provider of receivable management and information services across Australia, NZ and Asia. This company is making a large loss and was delisted once and put into the hands of creditors. Decision : Not worth looking into further.


ASX:MSI - Multistack International Limited - This company operates in the heating, ventilation and air conditioning industry. Recent Numbers from half Yearly report show revenue dropping significantly but profits up substantially. Looking further back through the history of the company they are continually losing revenue. Decision : Not worth looking into further.


ASX:NWA - New World Alloys Limited - This company is a minerals exploration and development company. Even thought they are producing cash flow it is still not enough to cover expenses. Also the rest of the fundamentals do not look good for this company. Decision : Not worth looking into further.


ASX:TDR - Toodyay Resources Ltd - This company is a mining and exploration company. Formally known as Gympie Gold which went into administration due to a fire. They are chewing through the cashflow. Decision : Not worth looking into further.


ASX:PMX - Palamedia Limited - This company specialises in the production of business and finance content which is supplied to a variety of audience segments through electronic publishing and broadcast agreements. The fundamentals are only showing a profit do to sale of assets last year. Cashflow is being burnt quickly. Decision : Not worth looking into further.


ASX:MOD - Medical Corporation Australasia Limited - This company is involved in investment in healthcare and the research, development and commercialisation of medical products. There revenue last year was zero but they do get tax concessions for Research and development. They have a large bank and they have purchased some products. Decision: Need to see more from its new products before further investigation.


ASX:ASU - Alpha Technologies Corporation Limited - This company designs, manufactures and distributes a range of temperature and other sensors. They are showing continued record profits and seem to be expanding at a constant growth rate. Decision: POSSIBLE BUY


ASX:PKT - PocketMail Group Limited - This company operates as a provider of simple and affordable mobile e-mail services and devices but has recently bought a company that is involved in Uranium Mining. Management are just jumping around looking for the hot sector. Decision : Not worth looking into further.


ASX:ACX - Acma Engineering & Construction Group Limited - This company provides services related to steelwork construction, primarily to Agricultural businesses and the petroleum industry. This company has been in voluntary suspension. Too much risk here. Decision : Not worth looking into further.


ASX:CDH - Chongherr Investments Ltd - This company principally operates in the quarrying of sandstone and exporting the blocks to Asia and Europe. They are making a profit although it was dropping. But further analysis shows a major contract win and a new mining lease. There may be some potential for the company. Decision : Further Investigation needed leaning towards possible buy.


ASX:IEQ - International Equities Corporation Limited - This company is principally involved in the investment and development of property, and the management of the Seasons of Perth hotel. This company is making a profit but property developments currently being undertaken are chewing through the cash. Decision : Further Investigation needed leaning towards possible avoid.


ASX:LAS - Lasseters Corporation Limited - is an online casino operator, providing casino gambling services to the international market. Interesting area that has a lot of competition but also a lot of takeovers and mergers. Management is making tough decisions about losing the majority of revenue from the US. They will make a loss this year but could warrant investigation in the 2008 year if they return to profitability. Decision : Further Investigation needed leaning towards possible wait before buy.


ASX:MME - MTM Entertainment Trust - This company is a property trust. Together with its controlled entity, The Worlds Biggest Screens Pty Ltd, it operates IMAX theatres and invests in the leisure and entertainment property market. I couldn't see them making money in any recent reports. Decision : Further Investigation needed leaning towards possible avoid.


ASX:HGL - Hudson Investment Group Limited - This company is mainly involved in property investment, management and development in Australia and New Zealand. They are making cash but the Debt to equity ratio is almost 200%. Too high with too much risk associated. Decision : Not worth looking into further.


ASX:AUX - Ausron Limited - This company's main activity is the commercialisation and development of salt tolerant eucalypts and forestry management and related services. They appear to be selling all assets and not knowing what they want to do. Decision : Not worth looking into further.


ASX:GBA - Grandbridge Limited - This company is an investment company offering a range of corporate advisory services. They seem to have various investments that are uniquely positioned. Still they are losing cash each quarter and not worthwhile as a long term investment.Decision : Not worth looking into further.


ASX:GUL - Gullewa Limited - This company has investments in several sectors, including listed equities, property, telecommunications, exploration and mining. This company has been performing well. I do not know enough specifics on the investments but they are showing good returns. Decision : Further Investigation needed leaning towards possible buy.


ASX:LAF - Lafayette Mining Limited - This company is a minerals exploration and development company operating in the Philippines. This country has political risks and currency risks. But saying all this the company may be turning things around. Decision : Further Investigation needed leaning towards possible buy.


ASX:DVM - Digital Media Online Limied - This company is a digital and media technology company that seek to capitalise on the growing market of point-of-sale indoor media advertising. They are chewing through the cash with no real revenue. Decision : Not worth looking into further.


ASX:BPK - Bremer Park Limited - This company focuses on the manufacture of timber products. it is going through tough times and I see no reason they can turn this around. Decision : Not worth looking into further.


ASX:CDL - Canada Land Limited - This company principal activities include the development and management of residential and commercial property in the transportation hub of Guangzhou, in the Peoples Republic of China. China is being very restrictive on investments and this adds risks to this company. The Debt to Equity Ratio looks good and the stock price is sitting at a 12 month high. The NTA backing has increased to 15c. This stocks looks to be producing the growth needed and should be investigated further. Decision : POSSIBLE BUY

Well I hope that has helped a few people who are on less money and are looking for the smaller stocks. There is always a greater risk and reward when dealing with these types of stocks due to the wild swings which can occur. Still there are opportunities to be found and exploited.

Good Luck Investing.

2 comments:

Anonymous said...

Festival of Stocks -- March 5, 2007 Edition
Welcome to the March 5, 2007 edition of the Festival of Stocks, which includes the article that you are reading.
Thank you for stopping by to browse.    
The Skilled Investor

daniel said...

In regards to all Timber Stock investments i would recommend this report...It has been very useful for me.

Investing in Timber Stocks.

Cheers!