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Another high record today.... I guess it climbing on with SMB.
I can help to host it.
Email me, kolslorr@gmail.com
Vic,
Yes, what I am saying is, at today's respective closing of SMB and EDMI, the market is pricing SMB's business at 3 cts premium to its NAV.
This shows that SMB's price lags EDMI.....unless mkt is not optismistic about SMB's prospect......in fact, this was the case for UIC/SpLand for most of 2006.
In fact, for simplicity, the easy way for this is .....divide EDMI price by 4 then add 17.2 cts to get the 'theoretical' NAV of SMB.
Hi all,
Have been following this thread closely. Seriously like the sound advise given by experts or should I says accumulators of EDMI. Hence, would like to seek your advise and opinion on how far you think this stock can carry thru and what's the ultimate potential here.
Thanks in advance.
Stock prices and its valuations are not solely determined by a single factor...in this case the NAV.
There are other considerations such as eps, div yield, expected earnings growth/decline, financial health, management, industry, comparison to peers and market sentiment.
In the case of EDMI, its current P/B (Price to Book) ratio is 2x ...i.e. price is 100% premium to its NAV.
Its historical eps is 3.99 cts (FY 06) - making P/E of 11.4x. But, its profit growth from FY05 was 42%. so, say, the market expects eps to grow by 50% pa compounded, then eps for FY 07 is 6 cts and FY 08 is 9 cts.
So, forward P/E (FY 08) is 5x....which is not too demanding.
Then by the same criteria, the market has over-valued EDMI by 100%. Correct?
Issued Shares - EDMI - 207 mil SMB - 473 mil
No. of EDMI shares owned by SMB - 118 mil (57%)
SMB NAV @ 31 Dec 06 - 22.3 cts
EDMI NAV @ 31 Dec 06 - 20.52 cts
NAV of EDMI shares held by SMB => (20.52 cts x 118 mil)/473 mil = 5.1 cts per SMB share.
NAV of SMB without EDMI = 22.3 - 5.1 = 17.2 cts.
At EDMI close today of 45.5 cts, value of EDMI to SMB = (45.5 x 118)/473 = 11.3 cts
Theoretical value of SMB = 11.3 + 17.2 = 28.5 cts
SMB close of 31.5 cts today => the market has a premium of 3 cts (31.5 - 28.5) on its NAV.
Hope readers can comprehend.
Vic,
FY 2006 AR not posted on internet yet.
However will post some info on the theoretical price link between EDMI and SMB.
keke yea gege, we're square. and you copy meeeee!!! elf went in edmi again this morning too. :P
very interesting techs on it, i'll tell the story later tonight; fully suspecting something up with this counter but i don't know the FA details, so gotta leave that to vic later. but working now so no time to watch market/tell detailed story. it's abt cornered stocks. baseerahmed, if you're here, watch for elf post tonight. the techs for cornered stocks are really beautiful.
cheers for now! :)
looks like you folks enjoying a EDMI (whale/great) of a time... congrats..!!!
Well done!! another break thru' to 40cents. Will maintain and break thru' another new height soon.. Watch out for that.....
Momentum building up for penny stocks like EDMI, SMB United, Frontline etc. EDMI potential seems to be unleashed after it convincingly break thru the 40 cents barrier and hitting new height recently.
Happy for all EDMI-ers who has held firmly to this counter and many thanks to Vic for his insight and opinion. Just lean back and let the profit run
.
Not to worry. it will go high up once the big dealers had enough
gah. they're playing punk with edmi again. closed 39.5c courtesy of one miserable lot thrown down at closing bell. 1 lot!!
sheesh.
hullo qpzm,
will respond to your aussino post on fellowship, pls follow thread there. let's not distract the edmi-ers.
For edmi-ers. yep, stilll holding. BBs playing hokey with counter yesterday. closing bell threw down mini lot to make it close 39.5, 'cos previous few quotes were buy. Just sit tight on this counter. tight float. heehee.
Victorian...
Yes... and there's so much truth in that!..
Sometimes, it can be rather silly to talk about "overbought" or "oversold"... hehe... :)
(NB. There's nothing personal at all in that comment!)
correction: it should be oversell.
vic / elf, seen ur numerous posts in the forum. ur advices are a great help to 'new-hand' like me in trading. a qns my mind that i need a advice. is it true tat if a share is overbought (RSI & William) technically it should generate int in it. eg aussino however there have been no much of movement in this share. wat are the other underlying reasons? tq.
Yeap, laying the foundation for its upward climb. Probably moving towards $0.50 before heading towards $1. Can be potential for multi-bagger in the long term. Hopefully, it will not be buyover / takeover by other too soon, it needs time to realise its full potential and value.
Sitting pretty comfortable with this counter. Looking to increase further if price is right.
techincal drop.... Will growth soon... See for yourself....