Fundamental Analysis on Amara Holdings

Amara Holding listed on 10 July 2000 on Mainboard,
                                      15 Aug 1997 on Sesdaq

Financial Data

FY          EPS          REV      Net Income    Free Cash        Net % Operating
             (cents)       (mil)           (mil)               (mil)                      Margin          
2012      5.10         90.3         29.426             15.226                32.60                  
2011      5.84         62.1         33.673             11.443                54.23                  
2010      2.83         61.688     16.353             10.346                26.51                  
2009      1.95         102.679   11.255             22.373                10.96                  
2008      2.08         71.429     11.985             27.026                16.78                  

Ave        3.56         77.64                                                          28.216
(5yr)  

Other Data

Cash Bal : 11.486 mil
Debt (current): 12.704 mil
         (LT)     : 201.919 mil

Shares issued: 579936000

NAV: 50.24c

Div Yields : 1.1%
Div Payout Mth: June

Div Payout (2013 / 2012 / 2011 / 2010 / 2009) : 0.6 / 0.6 / 0.5 / 0.5 / 0.5
(cents)

Opinion

I chance upon this stock while doing my daily scanning for trading. Amara Holding is from the hospitality sector and have been listed on the Singapore Exchanges for more than 10 yrs. Thus i have carry out research on the fundamentals of this company. Looking at its 5 yrs data the company revenue whipsawed as there is no consistency in earnings. Operating margins remains healthy. However, its debt outstanding is a case for concern and most probably will be looking for financing for the next 12 - 24 mths.

Conclusion

With its book value at 50.24c (TTM), its estimated FY 2013 will probably be around 2.2 - 2.6 cents. Given that it is trading at 56c, this counter is now trading at 10% premium. The PE is at 11 which look fairly valued.

Should you have this stock, it would be wise just to HOLD.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Avenues for Raising Funds for Companies with Poor Liquidity

What are the avenues that a company can do to raise funds to pay off current debts? They are as follows:

• Borrow from Banks
• Issues Bonds
• Sell Part of the Business
• Private Placement to Financial Companies
• Shares offering to Institution / Existing Shareholder
• Rights Issues

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Using CURRENT RATIO in your Google Scanner

Investopedia explains 'Current Ratio'

The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

From the above, we will have an idea that Current Ratio < 1 are companies that have pay-back problems. This type of companies, we'll try to avoid. Thus, one of the screening criteria that i have use in Google Scanner is as follows:

Mkt Cap : 100M to Max
Div Yield: 5-15
Current Ratio < 1

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An overview of fundamental analysis

Below shown is a picture of the weightage of fundamental analysis. 

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.