Valuation is as much art as science sometimes. The two most important factors IMHO are: TNAV with due regard being had for the nature and quality of the asset; and DCF with an adjusted weighting for present cash generated ie. apply a higher discount rate to future anticipated cash flows.
I was there between 1992-1995, did a BCom and Hons then CA(SA). I was in Smuts and then in digs on African Street. Worked at the Spur and Gino's waiting tables, most of that money went to student fees. But I did spend a fair amount of time resolving the mysteries of the universe at the Vic while contributing to SAB's growth ... I hear that the Vic has been closed down...pity that!
Without going into too much detail: - because the directors are also large stakeholders and they control the "E" and can make it appear as they wish through distribution, variation of reserves, Deferred TAX policy (worse in the days of partial recogniton,) etc. Also - many of these types of companies are in a "ramp-up" phase and cannot be expected to display healthy ROE's. A growth company may wish to retain cash to take advantage of opportunites - this would hurt ROE despite being "the right thing to do. ANS SO ON...
I never said 'to increase" I am interested in situations where the directors are depressing earnings while accumulating their own shares. Remeber - I am looking for value - not window-dressed basket cases.
Hi, once again it is me the 13 year old. With all the controversy going on i decided i better just clear things up. Yes i can prove i am 13 because i know what the abbreviation "LMFAO" stands for, the only difference between me and any the majority of other traders is that i dont have to pay tax on my profits. So from the helpful comments i have learned rather to invest slowly and more surely in companies that are undervalued. Thank you although i am still uncertain on exactly which share.
Invest in MTN , it is really dirt cheap,excellent dividend play. Imagine spoiling your future girlfriends with all those tax exempt dividend you will recieve from MTN. You can buy yourself a car, some fancy designer clothes and even join an elite social club. Think MTN, think possibilites.