Wednesday, September 15, 2010

DRBHCOM Something Wrong Someway ??

Rolling EPS for latest 4Q = 30.12sen
PE = 3.82sen !!!!!!!
Average Industrial PE = 13sen

U see what i see ?? How much would it worth, say if it trade half the AI PE @ 6 ??
I wonder why EPF still disposing non-stop ??


David said...

Using huge amount of debts to make money isn't sexy at all. Their gearing is too high!

Balance sheet as of 31/3/2010
Total Current liabilities: 15,218,275
Long term Liabilities: 4,953,794
Shareholders' fund" 4,579,736

D/E: 4.4!!!!!!

horse said...

u got it all wrong ! that is not the way of calculating gearing.
as i mentioned before in my previous post, below is how i rate gearing :-

Gearing > 1 - extremely high
Gearing 0.7 - 1 - High
Gearing 0.5 - 0.7 - Medium
Gearing 0 - 0.5 - Low

in fact drb gearing only stood at 0.33 which is low and healthy enough. to me, nothing is wrong for having debts to run a profit operating biz.

K C said...

I agree with you DRB's gearing appears to be very low. However, I am extremely suspicious about its financial statements. Take for example 2009 results, profit margin at 2.6% (extremely poor), asset turnover at 7.3 (extremely high), accounting leverage at 1.33 (surprisingly low), giving a good ROE of 15%. Operating cash flow only 0.5% of revenue (very very poor), times interest earned 1.8 (very very bad). If the profit margin of a business is below 10%, I will normally avoid. First half of financial year ending June 2010, completely different set of ratios! A lot of figures just do not tie up with each other, meaning highly suspicious. Caution! Caution! Caution!

horse said...

i know yr assess matric there, u focus on profit margin. which indeed a good point of practise. in fact drb is not my prefernce as well if apply strictly to my matric.
this biz is very volatile and thin margin. i like it latest q surge 2.3time of preceding q, mean short term trade riding on up trend CI should be quite positive.
I will adopt hit n run when i see the kicking is there. :)

alwayswin111 said...

MNRB... Thumbs up. Congrats all who bought.
Our logo... Laughing all the way to the bank..

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