analyst wiseowl - rates tfc standout value!

Hi team,

I guess my comments will be validated shortly when Wise owl publish their updated report (and other analysts reports are made available to the public on www.tfsltd.com.au).

In the Australian 16 September titled "IDENTIFYING BARGAIN STOCK"

TFC at its current floor of $1.00 is a must buy.

Article extract....

"Sven Restel, senior analyst at subscription investment advisory service Wise Owl, says there also is good value to be found in the small and micro-cap sectors of the market. But he cautions that investors can't always use valuation techniques such as PEs and dividend yields because the stocks may not have earnings or dividends.

"We follow the story back to the valuation, not vice versa. We're looking for what the stock will be like in one year, three years; it's the future earnings that are most important," he says.

"If we like a stock, it doesn't have to have a particular single-digit PE or a low price-to-book, it depends on where it is valued relative to its peers. If it has good prospects and is trading at a discount to its peers, it's a bargain."

Being bullish on ....But he also nominates as "STANDOUT VALUE" sandalwood producer TFS Corporation (TFC)


"They're all good stories on a combination of good prospects, strong management and good value. They tick all of those boxes.

"But some of them have (negligible) earnings. You can't always use a PE.

"We strongly believe that you've got to drill down and understand a stock's story to really find value."

SD


Indetifying bargin stocks:
http://wl.theaustralian.news.com.au/story/0,25197,26058731-5018061,00.htm