09-04-2013, 04:33 PM
Roller coaster ride on BT for last couple days.
OCBC analyst use Profit margin as valuation...which translate to EPS and thus PER. Is his method appropiate for BT?
8Apr2013
STI down further as investors reap gains
Selling spree attributed to bird flu scare in China, N. Korean tensions
.... "The correction in BreadTalk's share price... has helped to temper the sudden spike from late March, and we take this opportunity to caution investors against getting too carried away," said a note by OCBC Investment Research. "In our view, a takeover by Minor International is remote at this juncture."
OCBC added that BreadTalk has shown impressive yearly double-digit revenue growth but has yet to translate the success to its operating margins. "Although its ongoing expansion plans are partly to blame, the pace of the margin declines does create some concerns over its operational efficiencies in the long run," said OCBC.
It said BreadTalk is "expensive at current price levels", urging investors to take profit. It values the counter at 77 cents.
OCBC analyst use Profit margin as valuation...which translate to EPS and thus PER. Is his method appropiate for BT?
8Apr2013
STI down further as investors reap gains
Selling spree attributed to bird flu scare in China, N. Korean tensions
.... "The correction in BreadTalk's share price... has helped to temper the sudden spike from late March, and we take this opportunity to caution investors against getting too carried away," said a note by OCBC Investment Research. "In our view, a takeover by Minor International is remote at this juncture."
OCBC added that BreadTalk has shown impressive yearly double-digit revenue growth but has yet to translate the success to its operating margins. "Although its ongoing expansion plans are partly to blame, the pace of the margin declines does create some concerns over its operational efficiencies in the long run," said OCBC.
It said BreadTalk is "expensive at current price levels", urging investors to take profit. It values the counter at 77 cents.
(06-04-2013, 11:28 AM)Ray168 Wrote: Hi RBM, thanks for the article.
Indeed, Mr. market is unpredictable.
Let the market serve us, and not commnd us.
What this means is, the stock market and individual share prices can sometimes move without logical reasons and an investor should ignore that and focus on the business’s fundamentals to appraise its intrinsic value. And in the case of Breadtalk, its investors should forget about Minor International and the market’s reaction to it and instead focus on what’s Foolishly important – how well the business is doing.
Still vested.