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:
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?
Cheers!
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: http://secretinvestors.blogspot.sg/2014/12/ap-oil-5ausi-neglected-but-cheap-stock.html
ReplyDeleteHi secret investors : Thanks for dropping by and comment. I've dropped by your post, your analysis is very detailed and complete. Keep it up!
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