Tuesday, November 3, 2015

Sapphire Corporation - Is It A Real Precious Stone? My CNAV Analysis

A couple of hours ago, a cute friend of mine texted me to ask for a favor to take a good look at a counter of his interest, Sapphire Corporation (NF1.SI) and do a post of it if it makes the cut. 

So here you go (you know who you are), my CNAV Analysis on Sapphire Corporation. 

Disclaimer : Prior to this, I have 0 knowledge about the company. After some brief research, besides having a better understanding of the company's financial position (which is erratic over the years), I also know that it was previously known as IRE Corporation Limited and is in mining service businesses. This analysis is purely for personal case study (for my friend as well as myself), hence, it should not be constituted as recommendation to buy/sell. 

Stock In Evaluation : Sapphire Corporation [NF1.SI]

The Key Quantitative Indicators of CNAV Strategy (basing on 2014 Annual Report figures, source : Yahoo Finance):

Net Asset Value (NAV)                             = $0.0737
Conservative Net Asset Value (CNAV2)  = $0.0174
Current Price                                              = $0.115
Discount For CNAV2                                = -561%

Conclusion : Since it is a negative "Discount for CNAV2", it means that the stock is traded at premium. In fact, it is traded at a premium against its NAV indicator. 

The P.O.F Scores of CNAV Strategy: 
Profitability Score         = 1 (With the PE ratio of 11.5, well below the average of 15)

Operational Efficiency = 1 (with two consecutive years of positive operating cashflow in the past 3 years)

Financial Efficiency     = 1 (Debt To Equity Ratio of 69%)

Conclusion : A perfect POF indicators.

In short, Sapphire Corporation do not fall within the radar of CNAV2 strategy at this moment in time. 

Additional note : Today (3rd Nov 2015), Sapphire Corporation closes at $0.115, which is 11.65% higher. I do not know the cause(s), could it be another potential delist or acquisition of other company? If you have any clue, do share them in the comment section.



  1. http://www.straitstimes.com/business/companies-markets/mainboard-listed-sapphire-to-acquire-china-railway-infrastructure

    1. Its not delisting but rather a turnaround move in buying the China company. But till what price it can rise too I have no idea. Not sure the sudden rise is related to the Indonesia railway project given to China firm.

    2. T.U.B : thanks for dropping by and refreshing the news about the acquisition of Ranken.. It makes sense for the rise of share price if it is due to the potential indon project. Are u vested?

    3. Vested. But only a small position that I am able to still allow me to sleep well at night.

    4. T.U.B : I see.. Hope there is upcoming good news, huat ah!

  2. Capricon : I am having the same sentiment as yours.


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