TGoff-wa
Current price 0.70
Expiry : 2016
Conversion :0.55
Average FD rate = 6%550 x 0.06 x 7 years = 33 x 7 = 231 = cost saving 550 - 231 = 319
319 + 700 = 1019
mother price as at 2009 = 1.251250 - 1019 = 231 $$$$$ see d value ??
Look, this is what u r buying now, ur total cost @ 2019 is only =RM1019 if u do the conversion.
NTA for TG OFF = 1.30
EPS =0.15 per annum ( to sustain it ,shouldnt be any problem )
Theoritically NTA for TG OFF 7 years from now = 0.15 x 7 + 1.300= 2.35, base on NTA alone u already made RM1331 (RM2350-1019) ^0^ dont forget 7 year from now the price for TG OFF should be much much higher than its NTA of 2.35 ^0^
The above is only applicable on stock with good earning n management track records like PBB, PPB , YTL...... dont apply it on speculative n lousy stocks with no fundamental back up ^0^
IF THE MOM SHARE PRICE IS > 2.35
TOTAL RETURN OF TG OFF-WA
IS ( 2.35-0.55 ) / 0.70 X 100 = > 257%
Take note : Mom1.25 - conversion 0.55 = 0.70 very much in money !
Ask yrself is TG OFF is in oil n gas sector (O N G) ?
Is crude oil price have the upward potential ?
Sunday, May 10, 2009
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