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Sunday, March 22, 2015

Undervalued stock, Nam Cheong

Nam cheong seems to be one of the very undervalued stocks that is affected by the slump in oil price. Recently, it had sold 2 of its vessels for US $58m and its book orders stood healthily at $635 million ringgit.

Source: http://www.businesstimes.com.sg/companies-markets/nam-cheong-clinches-us58m-orders-for-two-vessels

It has a PE ratio of 5, with a 5% dividend growth rate and its price stood at 1 year low.

Source: http://www.bloomberg.com/quote/NCL:SP


Assessment

Since it sold 2 vessels in USD and its financial statements deal in ringgit, it is very likely that this deal will cause a spike in earnings.

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