Centurion was a CD producer, and still is.
That is opposite of what I like.
I like new technologies.
I like new technologies.
But the company is bold enough to transit into something very different.
They are the only company in Singapore that are doing workers' dormitories.
Which is also something I like.
I like the idea of a company building cheap and better accommodation to help people that are in a worse position than me.
I like that idea that my money is use to do some good for other people.
I like the business idea, and next is the financials behind the company.
Mostly checked my list.
PE of around 8.
Price book around 0.7.
Currently the price is trading at the lowest point in 2 years.
Dividends decent at around 4%.
Income should be growing steadily.
Many projects in the pipeline, including investments into student accommodations in UK and Australia.
But something made me pause and monitor at the moment.
Its debt to equity ratio is 130%.
Long term debt (538m)/ (Retained earnings (317m) + common stock (90m) ) = 130%
Long term debt (538m)/ (Retained earnings (317m) + common stock (90m) ) = 130%
That means that debt is 130% of equity.
Warren buffet prefers a ratio of under 50%.
I would feel more comfortable if it is 100%.
So, I shall just keep it in the list and do nothing.
