FA - Qualitative Analysis of Gallant,
A quick breakdown of its revenue contribution
1- Utilities - 35%
2- Industries - 24%
3- Resort - 1%
4- Property - 22%
FA - Quantitative Analysis,
EPS - 0.004
PEx - 118
NAV - 0.516
Yield - N.A.
Gallant can be classified as Asset Approach Analysis, thereby NAV valuation can be used as reference. With current price below NAV, it looks pretty attractive to invest from a value investment standpoint. Gallant is the only infrastructure provider for the island, another monopolistic company.
However, one of my concern is the poor Earning yield or PEx 118. If you look into the Return Of Asset at 1.9%. Simple Calculation, at this rate, it will take >100 years to recover those investment. The stock has some volatility and 2 analysts houses have recommended a BUY. So Price below NAV is valid but PE at 118x. I need to seriously consider those reports to long this stock.
FA - Entry / Exit Strategy
Using Benjamin Graham's Entry Rule - NAV at 66% = 0.34
Using BG Exit Rule - NAV at 150% - 0.75
TA - Entry / Exit Strategy for Gallant,
Trend : Up
Momentum : > 60% (moderate good momentum)
Price to Volume Trend : Strong Peak or Price/Volume Movement detected.
Candlestick signal : NA
Resistance at 0.505
Support at 0.46
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