Monday, September 29, 2014

AP Oil - My CNAV Analysis

AP Oil
Inspired by a post from a fellow blogger, owner of Compounding Wealth Through Sensible Investing (click here to see his post), it seems that AP Oil (5AU) might be a great catch from Value Investing perspective. I decided to delve into it further with my CNAV (Conservative Net Asset Value) Analysis. 

Following are my findings (basing on 2013 Annual Report) :
Stock In Evaluation : AP Oil (5AU) 

The Key Quantitative Indicators of CNAV Strategy:

Net Asset Value (NAV)                             = $0.25
Conservative Net Asset Value (CNAV2)  = $0.19
Current Price                                              = $0.20
Discount For CNAV2                                = -7%

Conclusion : Since it is a negative "Discount for CNAV2", it means that the stock is traded at premium (from CNAV perspective). However, it is traded at a 20% 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 7.2)

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

Financial Efficiency     = 1 (Debt To Equity Ratio of 24%)

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 $0.19.

Are you vested in AP Oil? What is your take on this stock?



  1. Hi Richard, nice CNAV analysis you have - short and sharp :). I'm interested in AP Oil too. Here's my analysis and feel free to comment:

    1. Hi secret investors : Thanks for dropping by and comment. I've dropped by your post, your analysis is very detailed and complete. Keep it up!


Like What You See? Subscribe To Us Here...

* indicates required