About a year ago, I vested in King Wan (554) and did a CNAV Analysis (after attending the Value Investing Mastery Course by BigFatPurse), click here for my earlier post.
Today, I am doing a Take 2 on King Wan's latest CNAV Analysis to review what has changed after one year. In fact, it is due to the following event lar:
1. King Wan's dropped a whopping 12.5% on Tuesday (2nd June 2015)
2. As recommended by one of the pioneer peer financial blogger (Createwalth8888)
Net Asset Value (NAV) = $0.2811
Conservative Net Asset Value (CNAV2) = $0.14
Current Price = $0.28
Discount For CNAV2 = -98%
Conclusion : Since it is a negative "Discount for CNAV2", it means that the stock is traded at premium. Having said that, it is almost level with the less conservative NAV indicator.
The P.O.F Scores of CNAV Strategy:
Operational Efficiency = 1 (with three consecutive years of positive operating cashflow)
Financial Efficiency = 1 (Debt To Equity Ratio of 56%)
Conclusion : A perfect POF indicators.
In short, King Wan has improved its attractiveness from CNAV perspective. Hence, it warrants to be in the watch-list for those who are practicing CNAV2 strategy.
The Key Quantitative Indicators of CNAV Strategy (2014):
For better comparison, I've copy and paste my previous CNAV Analysis here :
Net Asset Value (NAV) = $0.25
Conservative Net Asset Value (CNAV2) = $0.07
Current Price = $0.35
Discount For CNAV2 = -398%
Conclusion : Since it is a negative "Discount for CNAV2", it means that the stock is traded at premium. In fact, it is already traded at a premium (40% higher) even compared with the less conservative indicator, NAV. So, if basing on the CNAV strategy, this stock would only be in my watch-list (i.e. not a "buy" signal).
The P.O.F Scores of CNAV Strategy:
Operational Efficiency = 1 (with three consecutive years of positive operating cashflow)
Financial Efficiency = 1 (Debt To Equity Ratio of 56%)
Conclusion : Even with the score of 2 (out of 3) but since the PE Ratio is only slightly over the average, I will still consider it a good set of POF indicators.
In short, if I were to apply the CNAV strategy on this stock, I would not buy it NOW but will keep it in my watch-list until it has a positive discount for CNAV2.
Cheers!
Hi Richard
ReplyDeleteAlamak, it's still a far away from the CNAV2. Jialut :(
B : let's keep calm and keep going! Wahahaha
DeleteWhat to do now? Still hold?
ReplyDeleteCw8888 : of course, I am in it for the long term remember? lol
DeleteAgreed! For super long term retail investors, any method is irrelevant. We just need the Mind and Money.
DeleteLess analyzing. More Investing - CW8888
LOL!
CW8888 : Indeed! Cool motto : Less Analyzing ; More Investing. I like it lol
DeleteHi Ricard,
ReplyDeleteHow do you calculate CNAV2? Thanks in advance.
I am using a spreadsheet from Big Fat Purse's Value Investing Mastery Course ;-)
DeleteIs it downloadable or I need to attend the course first? :)
DeleteIt is not downloadable online, they will provide you when attending the course and explaining to you on how to calculate them... It's a course worth attending for if you are new to stock investment
DeleteI read from their blog the diff between CNAV1 and CNAV2. They only have sample for CNAV1 but I don't invest in properties. Just curious which one to discount for non-property stocks.
Delete