Here are the details to my analysis of the rubber stocks best value: Hope this helps in your stock picking.
Ratio Rv = today opening price/fair price
1. Supermax ( Qtrly eps 12.6 sen, fair value RM5.07***). Rv = RM5.39/fair value = 1.06
2. Top Glove (Qtrly eps 21.0 sen, fair value RM7.90). Rv = RM10.40/fair value = 1.32
3a. Latexx (Qtrly eps 6.3, fair value RM2.52). Rv = RM3.40/fair value = 1.35
3b. Harta (Qtrly eps 12.3, fair value RM4.96). Rv = RM6.70/fair value = 1.35
4. Kossan (Qtrly eps 8.7, fair value RM 3.48). Rv = RM5.93/fair value = 1.70
5. Adventa (Qtrly eps 4 sen, fair value 1.60). Rv = RM3.50/fair value = 2.19
Oooops... I din't grabbed the best valued rubber stocks.. Well then, it's time to add Supermax....
Sorry I didn't include IRCB (loss making?) and Rubberex (industrial/household gloves) in my analysis. Rubberex (latest eps 6.8 sen) may follow the path of Adventa (both were at the initial RM1.80 range prior to making their big moves). Oh btw, Adventa will declare dividend (4 sen.???) soon..
How I assume my fair value is interestingly simple.
Assume annualised PER (price/earnings) = 10 , then quaterly PER (price/quarterly earning) = 40, meaning quaterly PER = 40 sen/ 1 sen.
So I'm willing to pay 40 sen on the price of a stock when it can earn 1 sen per quarter or 4 sen per year. Make sense...?
Take GenM (Resort) as an example
Latest Quaterly eps is 7 sen, so I'm willing to pay 40 x 7 sen = RM2.80 as fair price..
I'll accumulate more of GenM at below RM2.80 for now