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US stock with potetial grow of 230%, a “cigar butt” as Warren Buffett puts it

Value appraisal by FTinvest.US

We conducted a value analysis; our total estimation of a share price is equal to $ 113,4480133.

Then the Net Present Value (NPV, or Margin of Safety) your potential profit:

NPV = $79,06801328>0.

The potential growth of a stock determines the profitability index — PI = 3,29>1.

Thus, the analysis of the share price showed that, from a fundamental point of view, the security under study is undervalued and can grow up to 229%.

The maximum possible dividend yield is 34%, under which the payback period is 62,97 years.

Credit rating by FTinvest.us – BB – Sufficient level of creditworthiness.

This share is now in our FTinvest 11 portfolio and you can see why.

Two significant factors hinder the company’s growth: first, every year they write off a substantial amount of customer credits for reasons I don’t understand; second, there are still no dividend payments.

However, there are reasons to consider this a buying opportunity:

  1. Our value assessment shows that the share price could increase by up to 230%.
  2. It’s a “cigar butt,” as Warren Buffett puts it, meaning that if we sell the company’s properties now, we could get around 100% of the current share price.

Perhaps it would be better to sell the company piece by piece? For us, this presents a substantial opportunity to make money, akin to the “Other People’s Money” (1991) movie.

Want to invest in this security? This is very easy, just subscribe to our service and download the file in Documents page.

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