Investment: TiongWoon

ET was wondering whether does TiongWoon still worth 0.55, after all the calls, at target $1.00

My task today will be reanalyse TiongWoon again, after its recent acquisition of a tower crane operator Soon Douglas, which operates: 49 towers and two mobile cranes.

From the chart below, we can see the new forecast of EPS is at 62.5% and thus, new EPS is at 4.2 cents. Its instrinsic value will be at $1.22 (in 2 years time) (refer below), after using the revised EPS as well as a new EPS growth rate. I use 25% growth rate as a more prudent average of the 4 years from 2006 to the forecast for 2009F.