Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.

January 20, 2007

0647 JOYCE BOUTIQUE (B-)


Earning Equity R.O.E
06* 70
05 74 437 16.91%
04 61 390 15.66%
03 30 325 9.31%
02 -35 294 /
01 -85 329 /

Profit margin: 9.5%
Financial position: Very Strong - 253m cash, no liab
Business prospect: earning can be sustained in future 5 - 10 years unless management problem happen
reasonable price: NCAV 282 + 70 * 10 = 982m / 1620m = 0.606
Current price: 0.34

John Neff formula: (5?+ 5.97 )/7.33 =


03/2006 03/2005 03/2004 03/2003 03/2002
Current Ratio (X) 3.45 2.98 3.14 3.08 3.22
Quick Ratio (X) 2.35 2.15 2.39 2.31 2.33
Total Debt/Equity (%) 0.34 0.00 1.61 3.10 1.77
Total Debt/Capital Employed (%) 0.34 0.00 1.61 3.10 1.77
Return on Equity (%) 16.91 15.66 9.31 NA NA
Return on Capital Employed (%) 16.91 15.66 9.31 NA NA
Return on Total Assets (%) 12.75 11.01 6.69 NA NA
Operating Profit Margin (%) 9.74 8.56 6.02 NA NA
Pre-tax Profit Margin (%) 10.18 8.56 6.02 NA NA
Net Profit Margin (%) 9.79 9.66 5.57 NA NA
Inventory Turnover (X) 4.81 4.65 5.76 5.79 4.97
Dividend Payout (%) 43.76 52.63 NA NA NA
Fiscal Year Highest Price (HKD) 0.790 0.670 0.630 0.197 0.210
Fiscal Year Lowest Price (HKD) 0.380 0.230 0.085 0.070 0.120
Fiscal Year PER Range (X) 17.3/8.3 17.6/6.1 33.3/4.5 NA NA
Fiscal Year Yield Range (%) 5.3/2.5 8.7/3.0 NA NA NA

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