Wednesday, 16 October 2013

STOCK TRADING BELOW NET ASSET VALUE(NAV), IS IT WORTH TO BUY?

We believe that NET ASSET VALUE(NAV) is an important factor when selecting which company to buy in. It is also interesting to note that when the company is trading below its NAV, it would attract a take-over offer. 2 counters we are vesting on, CHUAN HUP and ITE ELECTRIC. Taking a look at CHUAN HUP NAV at $0.39, why are people buying actively at 28cents, it means that the upside potential is great.
 

Another counter ITE ELECTRIC NAV at $0.176, why are people buying actively at 5.3cents, it means that the upside potential is great. For these 2 counter, we do not need to comment more about the valuation and over time the market will justify it.


 
 
 

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