Wednesday, August 27, 2014

Global Yellow Pages - My CNAV Analsyis

Global Yellow Pages
Inspired by the recent post from Singapore Stock Investing (SSI), which Ah Tom has shared a few times earlier on the same penny stock, Global Yellow Pages (Y07), I've decided to dive in further to evaluate this stock using CNAV (Conservative Net Asset Value) Analysis.
 
Following are my findings :
 
Stock In Evaluation : Global Yellow Pages (Y07) 

The Key Quantitative Indicators of CNAV Strategy:

Net Asset Value (NAV)                             = $0.120
Conservative Net Asset Value (CNAV2)  = $0.041
Current Price                                              = $0.049
Discount For CNAV2                                = -20%

Conclusion : Since it is a negative "Discount for CNAV2", it means that the stock is traded at premium. However, it is traded at a huge 60% discount when compared with the less conservative indicator, NAV. 
 
The P.O.F Scores of CNAV Strategy: 
 
Profitability Score         = 1 (With the PE ratio of 6)

Operational Efficiency = 1 (with three consecutive years of positive operating cash flow)

Financial Efficiency     = 1 (Debt To Equity Ratio of 38%)

Conclusion : A Perfect P.O.F Scoring

Final Conclusion : This stock is warrant to be in my watch-list and will plunge right in when the price hit the level of $0.04.

Other Relevant News :
1. After the failed take-over intend of Gloria Jean's Coffee, the company is still looking for other potential diversification avenue. 

Are you vested in Global Yellow Pages? What is your take on this stock?

Cheers!

12 comments:

  1. If they couldn't tie down gloria jeans, im not sure whether they can survive in the long term without more effort to diversify.

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    Replies
    1. Raymond : You have a valid point there. That's why they need to source for the alternative in a fast and furious manner ;-)

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  2. Have not really look in-depth into Global Yellow Pages before, however, just wanted to point out something about Graham's method. Using the CNAV method, Graham invested in such counters coupled with other metrics like debt-to-equity of less than 25%. Just my two cents :)

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    Replies
    1. Hi sgvalueinvestor : Thanks for the comment and insight about the Graham's method... appreciated that...

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  3. Hi Richard,

    What's the business of global yellow pages these days? What do they do to earn their profits? I used to have it when it's still called yellow pages which is spin off from sing tel.

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    Replies
    1. Hi Butterfly, their current business model are mainly direct marketing (eFusion), tourism (Singapore River explorer) and the new strategic investment in Yamada Green Resources (Food And Beverages). They need more diversificarion and hipe that they managed to find a perfect partner soon

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    2. Thanks Richard :) Sounds like singpost...trying all their best to swim against the tide by diversifying and buying stakes in other businesses to stay float. You really looking to get this?

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    3. Agree! Viable and long term business model is key for their future success. It is in my watch list only, will consider only if it went below the CNAV! What is your take on this stock?

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  4. My take? I've not seen their financial statements but I no longer bet on stones that might turn out to be a gem. I'd more than enough of such pennies in the past hahaa

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    Replies
    1. I see. I guess you have moved up the ladder of investors and invest only on Blue Chips? ;-p

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  5. Possible multi-bagger as one blogger says it.

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    Replies
    1. CW8888 : Yup! I think I know who you are talking about ;-)

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