Friday, July 06, 2007

Southern packaging re-visited

On 24th May, I mentioned a stock called southern packaging. It was 'advertised' by someone from CNA forum, saying it's price is below book value. Price to book is 0.76 (price was 0.15 on 24th May).

Price today was 0.235 (52 weeks higher, if not all time high). That means the price to book value is 1.19.

Price increase 56.6% since 24th May because the company is selling below its book value. Wow...really impressive! That's practical value investing at work. You buy at a price below the value, then you wait out and reap your benefits :)

I have more confidence in value investing already :)