COASTAL – Fundamental Analysis (25 Aug 2014)

COASTAL Analysis:-

Excel – http://1drv.ms/1ru7n3n

My View:-

– Fair Value:
  – 5-Y DCF:
    – Fair value: 5.82 – 6.61 (MOS: 19% – 28%)
  – Absolute EY% Valuation:
    – Trailing:   
      – FY13 (EPS: 0.313) – Buy below 2.05, fair value 2.5 (MOS: -104.9%)
      – R4Q (EPS: 0.365) – Buy below 2.39, fair value 2.92 (MOS: -75.7%)
    – Forward:   
      – FY14 (EPS: 0.358) – Buy below 2.35, fair value 2.87 (MOS: -78.9%)
      – FY15 (EPS: 0.402) – Buy below 2.63, fair value 3.22 (MOS: -59.5%)
    – EPS applied to reach the current stock price (5.13): 0.641   
– COASTAL’s business naturally is cyclical, and the shipbuilding division is currently riding the cyclical uptrend. Besides, I think that O&G sector started to slow down. Therefore, I won’t take 5-Y DCF valuation as consideration.
– Looking at the current stock price (5.13), investors/traders assumed 0.641 EPS which much higher than R4Q and FY15 estimation. I believe that the current stock price already factored in the future earnings.
– I will closely monitor this stock. This is a good stock for trading.

Latest Financial – Q2 2014 Financial Report (21 Aug 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1716197

At the time of writing, I did not own shares of COASTAL.

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