Realist
Billie Jean is not my lover
- Joined
- 1 June 2006
- Posts
- 2,057
- Reactions
- 3
NettAssets said:
Hahahaaa, I think even DT will offer about 3 times Duc's recommended buying price.
NettAssets said:Then DT is being entirely fair, he is just using Duc's valuation method.
As usual your analysis lacks any clarity and logical thought;
FORD....is not the car manufacturer which is ticker F
As previously detailed, but obviously ignored;
GAAP profits need not be profits,
GAAP losses, need not be losses.
P/E is the lazy-man's, or novice way of approaching a valuation.
There is no one else on this planet that thinks $2.65 is a fair price. You're own your own there.
Realist said:Then how come you can not quickly and accurately value a company then?
noirua said:A letter has been sent to shareholders, dated 17 August 2006, by Mr John Morschel, Chairman of Rinker Group, Headed:
Dear Shareholder
BEWARE OF OFFERS TO PURCHASE YOUR RINKER SHARES - THEY MAY UNDERVALUE YOUR INVESTMENT
I am writing to inform and warn you about Below-value Share Offers that may aim to entice you to sell your Rinker shares below their true market value. You may receive an offer like this shortly.
At the Annual General Meeting last month I mentioned that a law firm, acting on behalf of a company called " Direct Share Purchasing Corporation Pty Ltd " ( DSPC ) wrote to Rinker requesting a copy of our share register.
Unfortunately, under the Corporations Act, they are entitled to do this.
We understand that this company is associated with Mr David Tweed. You may know him; he is mentioned frequently in the media, in regard to heavily-discounted share purchase offers being made to shareholders of listed companies.
The offers take various forms. They may simply offer a price that is under the prevailing market price. Or they may offer you an amount above the prevailing price - but paid in instalments over a very lenghty period, perhaps 20 years. This substantially reduces the real value of the offer ( perhaps to around half the face value of the sum offered ) and may result in unforeseen taxation consequences for you. Furthermore, future payments may not be secured.
You may receive such an offer shortly. If you do, please check it carefully. It concerns me greatly that shareholders may unknowingly accept an offer for their Rinker shares that substantially undervalues their holding.
We are certainly not recommending that you sell your Rinker shares. However, if you do want to sell your shares for some reason, we suggest that you contact your broker. If you do not have a regular broker, information on how to get in touch with one is available from the Australian Stock Exchange's Customer Service Centre, telephone 131 279.
Thank you for being a shareholder in Rinker.
Yours sincerely - John Morschel, Chairman
A loss is a loss to me.
It is Ben Graham's way, NTA and PE are his babies. I live by them and so did he!!
brisvegas said:you got to be joking right . is it really that easy ? as someone once said a little bit of information is a dangerous thing . please enlighten me with your methodology for quickly and easily valueing a company and we will see if we can break it down for you . ive got a spare few minutes . waiting patiently
You've read Graham's books but you buy shares with high PE's and that do not pay dividends?
Realist said:Value = earnings multiplier * (expected dividend + 1/3 expected earnings) + adjustment for asset values
Value = earnings multiplier * (expected dividend + 1/3 expected earnings) + adjustment for asset values
noirua said:...and then read this: http://www.stockhouse.com/news/news.asp?newsid=3806871&tick=RIN
You are right Ducati, but that does not mean that the formula mentioned is wrong.
I have seen precious little evidence of any analytical ability, or even the inclination to apply thought to the problem at hand. In short you are looking for an easy ride, and assuming that purely superficial reading of Graham is sufficient.I value a stock based on past 5 years earnings.
They need to be consistent - no losses, they need to show growth, and there needs to be consistent and growing dividends.
As a quick calculation is to add up the past 5 years earnings and multiply that by 4 to get the approximate Market Cap.
Realist said:As a quick calculation is to add up the past 5 years earnings and multiply that by 4 to get the approximate Market Cap.
brisvegas said:Do you drive around looking behind you all the time ? where we have been matters but where we are going is much more important
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