I just like to give a short update on Ellipsiz Ltd.
I have seem low ball offers of my watchlist stock, such as Zagro Asia Ltd, happened before and succeed. But this is my first opportunity of receiving a general offer and I am still excited (even if it is a low ball one).
Anyway I have written about Ellipsiz Ltd previously, which you can read about it.
So now I have 3 choices:
1. Yes, I will sell.
2. No and I will ignore.
3. Wait and see, hope for a higher offer.
To decide, I will based my decision on the Enhanced Triple S Scorecard (Do note that Ellipsiz Ltd remains one of the stocks that pass the Enhanced Triple S Scorecard):
Based on 3rd Quarter of FY 2016 results, we note that:
1. Net Current Asset Value is about $0.325 per share.
2. Discounted Net Asset Value is about $0.531 per share.
3. 80% of Equity is $0.589 per share.
4. Graham Number is $0.691 per share.
As per my above findings, I will be more willingly to release my shareholdings if the offer was closer to the discounted net asset value price, such as $0.500. Therefore, my decision is to wait and see. Hopefully, the CEO will release a much higher offer.
In addition, do note that full year financials of 2016 will be released soon, around 18 August 2016, and I am expecting a large dividend to be given out. The reason behind my view of a large dividend is to compensate the CEO in spending his money for this general offer. Let's hope my guess is correct on this!
Current Price: $0.380 as of 7 July 2016.
Please do your own due diligence before you invest in this stock.
Do note the author is vested in this stock/company at $0.300.
If you are thinking of looking at stocks for the long term, do give my initial Triple S Scorecard a try. It's still a good tool!
For those who are interested to find similar quality under-valued stock, you can come and attend My 1st Sharing Session with T.U.B. I will only be sharing my Enhanced Triple S Scorecard then. If you are interested to attend, do not hesitate to contact me directly.
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