Monday, April 24, 2017

Know Your Stocks - How Expensive is PGOLD fundamentally based from their Dec 2016 Annual Report?

Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998 as a company involved in the business of trading goods such as consumer products on a wholesale and retail basis. The Company opened its first store in Mandaluyong City in December 1998. PGOLD's loyalty program, "Tindahan ni Aling Puring", was launched in 2004.

The Company conducts its operations through several retail formats and store brands. Hypermarkets, through "Puregold Price Club", offer a broad variety of food and non-food products and generally cater to both retail customers and resellers such as members of the Company's loyalty program. Supermarkets, through "Puregold Junior", operate as a neighborhood store which offers a higher proportion of food to non-food products vis-à-vis the Company's hypermarkets. Discounters, through "Puregold Extra", operate in a small store format that offers a more limited number of goods.

PGOLD also owns the S & R Membership Shopping (S&R) brand, which has a warehouse club concept where most of the products offered are in club packs; and Estenso Equities, Inc., which is the holding company for five companies namely, NE Daily Commodities and First Lane; PG Lawson, Inc.; Ayagold Retailers, Inc.; Gold Tempo Company; and San Roque Supermarkets. PPCI Subic, Inc. is operating one Puregold branch in Subic Bay, Olongapo City.

As of December 31, 2015, PGOLD is operating 135 hypermarkets, 93 supermarkets, 28 extras, 10 S&R warehouse clubs and 16 S&Rs - Quick Service Restaurants for a total of 282 stores all over the country.


PGOLD was recently became part of PSE index with a percent weight of 1.06% meaning, of all the 30 companies within PSE index, PGOLD effect on PSEi movement is only by 1.06%.
As of April 21, 2017, PGOLD was last traded price at PHP 41.75, this is 2.67 times higher compare to their recorded book last December 2016, not that expensive yet for most value investor since a PBV of more than 3 is considered expensive.
In terms of P/E, the company recorded a trailing P/E of 20.88 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 20.88Php. With a 20.88 P/E and with growth rate of 10.5% from 2015 to 2016, the company trailing PEG ratio would be 1.99 which means, investors of this company are paying 20.88Php for every 1Php income last 2016 for a 10.5% growth rate from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equivalent to the growth rate- increase in EPS.
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Sunday, April 23, 2017

How Expensive is Double Dragon (DD) now fundamentally based from their Dec 2016 Annual Report?

DoubleDragon Properties Corp. (DD), formerly Injap Land Corporation, was established on December 9, 2009 to primarily engage in the business of real estate development and other real estate-related business ventures. The Company started commercial operations in November 2010. DD was originally 100%-owned by Injap Investments, Inc. (IJI), a holding company owned by the Sia family. In June 2012, DD became a joint venture between IJI and Honeystar Holdings Corporation, the holding company of the Tan and Ang families. The Securities and Exchange Commission approved the Company's change in name to its present one on August 1, 2012.
DD and its subsidiaries own, lease, and enter into joint venture agreements covering several tracts of land for community malls, office, residential and other types of developments. As of December 31, 2015, DD's subsidiaries include DoubleDragon Sales Corp., One Eleven Property Management Corp, Piccadilly Circus Landing Inc. (PCLI), Double Dragon Property Management Corp., DD Happyhomes Residential Centers, Inc., DD-Meridian Park Development Corp., and CityMall Commercial Centers Inc.
The Company's core projects include CityMall, DD Meridian Park, Jollibee Tower, The SkySuites Tower, Dragon8 Mall, and W.H. Taft Residences. DD also has several projects in Iloilo, namely, Injap Tower, The Uptown Place, People's Condominium, FirstHomes Subdivision, and HappyHomes - Mandurriao. DD also entered into a joint venture agreement with the City Government of Iloilo to construct and operate the Iloilo-Guimaras Ferry Terminal.
As of April 21, 2017, DD was last traded price at PHP 52.25, this is 11.7 times higher compare to their recorded book last Decemeber 2016, quite expensive for most value investor since, a PBV of more than 3 is considered expensive.
In terms of P/E, the company recorded a trailing P/E of 200.96 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 200.96Php which is quite expensive. With a 200.96 P/E and with growth rate of 4% from 2015 to 2016, the company trailing PEG ratio would be 50.24 which means, investors of this company are paying 200.96Php for every 1Php income last 2016 for a 4% growth rate from 2015 to 2016. A fair valued stock usually has PEG ratio of 1 meaning, what you are paying for that earning- the P/E is equavalent to the growth rate- increase in EPS.
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