How investor pick stock base on PE?
For instance, stock A and stock B are in the same business field, both financial fundamental look similar, stock A trade at PE=10 whereas stock B trade at PE=15. Obviously, investor preferable to pick stock A as it is consider relatively cheap.
How we can determine a company is well managed?
For a well managed company, its annual ROE is ~25% and ROA is ~15%. In this case, XDL annual ROE=34.03% and ROA= 24.37%.
Annual ROE=Annual profit / (Asset-Liabilities) ;
Annual ROA= Annual profit/ Asset;
How we know a company is holding enough cash?
A strong fundamental company current ratio should be less than 5. In this case, XDL current ratio is ~1 and it is consider good.
How earning per share(EPS) affect the stock price?
PE=Current stock price/ EPS;
Assume the XDL PE is trade at 1.765. Year 2010 EPS=0.1983.
Current stock price= 1.765 x 0.1983 = 0.35.
If Year 2011 projected EPS is 0.25, stock fair price= 0.44.
2011 Q1 EPS=0.0431, XDL need to work hard in Q2,Q3,Q4 to gain 0.2069 to make annual EPS=0.25.
Would XDL archive it?
Please leave some comment if you have any insider news about XDL or anything about XDL.
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