New Value based stock valuation tool in Australia

[egilmore]

[quote]Loftus Capital Partners Limited
Level 1, 7 Macquarie Place, Sydney NSW 2000
Telephone: +61 2 9251 6444 Facsimile: +61 2 9251 2999
ACN: 067 185 899 ABN: 37 067 185 899
http://www.loftuscapital.com.au
MEDIA RELEASE – PRODUCT LAUNCH
12 October 2006
CLIME INVESTORS EDUCATION LAUNCHES AUSTRALIA’S FIRST
VALUE-BASED STOCK VALUATION TOOL
http://www.stockval.com.au
Clime Investors Education Pty Ltd (“Climeâ€

[SatayKing]

Gone

[muhaha]

I guess it would do well in a world where people are just to lazy to pull out thier business calculators, I am almost tempted to try it out , but the cost factor just a bit much.

[LainieJean]

SK

The advantage of the Lincoln program is not just the (partly black box) selection of star stocks, but also the company data that is presented in an easy to view format and the filters that can sort on almost anything. (Except CGVI. For CGVI you need to export to a spreadsheet and add two columns of calculation).

One of the most useful things about it is the ability to sort on "emerging" start stocks, small cap companies that are likely to go places. You can pick the RCR's and NBL's ahead of the price rises.

Simply following the Lincoln star stocks does not always work that well. They tend to come in when they have just announced good results and the price is high, and go out when they have just released profit warnings or lower profits and the price has gone down, so you can end up with a buy high sell low situation.

There did not appear to be a free trial of stockval. I would never buy anything without trying.

CAM is just a LIC, managed externally by a management company Clime Asset Management which is part owned by Loftus Capital partners. I think LCP will shortly fully own it. A bit like some property trusts that hold assets but are externally managed.


Cheers

LJ

[Rogeratclime]

I am not sure how you obtained the stockval price. Stockval is $848 up front and $67 per month. ALternatively you can pay $1595 in the first year and $804 every subsequent year. Regarding the comment about dividends required to pay for the software, Clime's yield in this calendar year will be around 11% so there should be no problem. Of course the nominal value of any dividends will be determined by the number of shares owned.

Regarding the reference to LCP (loftus), you will notice from the AGM that shareholders voted to change the Loftus name to Clime Investment Management. Now it should make some sense.

Regarding the StockVal comparison with Lincoln. There is none.

We are a small boutique fund manager with $150 million, the LIC with is a small (but growing) part of our business. We use StockVal solely to select investee candidates and most importantly Stockval uses a unique calculation to estimate the value of the business using its own performance. I am not aware that there is any other software that uses a valuation calculation without reference to P/E's WACC CAPM or beta.

Finally, StockVal calculates the return the business has generated for its owners using its economic performance which includes accounting for new capital raised by the company and injected by its owners.

See the attcahed screenshot. It is not a recommendation to buy or sell the security.

I hope this helps and thank you for being so open with your uncertainties.

Roger Montgomery
Chairman
Clime Capital Limited
(ASX: CAM)

[egilmore]

Welcome on board Roger Montogomery .
Entities that I'm associated with have been shareholders of companies that you like and hold such as TRS and FWD . I selected them due to a similar approach that U employ and from your sample I gather U have developed a very nice tool . My congratulations on this innovation and I wish U great deal of success .
Could U please bear with me and tell me how , for TRS , the quoted "normalized earnings per share" is $0.55 ? The fully diluted EPS for FY06 was 34.9c and the basic EPS was 35.9c .
TIA n cheers ...eGilmore

[Pedro-Egoli]

Welcome from me too Roger Montgomery.

Have read your various well written articles and I am sure forum members will welcome any input on this forum you may care to make.

Eg I think the stockval programme figures are the "cash flow" in hands of shareholder and not those of company.Cash flow being the Divs and franking credits plus growth in equity from retained profits.
In other words the 55cents mentioned is made up I think from "grossed up dividends $10.7+retained profits$3.3 =$14 divided by no of shares 25.3m =$0.55

Anyway, in between packing for a trip to the picnic races at Tabulam (northern NSW) on saturday I worked on a spreadsheet, to try and show what could be the make up of figures for the 4 years actual and 1 year estimate shown on RM spreadsheet.

Have attached a copy and got most of the figures to agree except those cells which are filled with red.
Investment value calculation shows up as $8.88 which is above the RM spreadsheet PRICE OF $8.10.
Also shown on spreadsheet is part of my spreadsheet using Dr. John Price's Valuesoft programme and interestingly the Buy Price at 15% RR is $8.04 and at 13.5% is $8.58 The parameters used are shown on sheet.

This exercise was done without any real knowledge of company and is not investment advice .
I do not hold TRS.
Unfortunately I am unable to attach as I am told I have reached my 256kb limit.
File is only 21kb so if anyone can assist would be appreciated.

[LainieJean]

Pedro

email the spreadsheet to me and I will upload it to my webspace so members can download from there.

Thank you for your info Rogeratclime. Your contribution is very welcome.


added later

link to Pedros spreadsheet

http://www.lainie.com.au/sharesguru/TRS-Stockval.xls




Cheers

LJ

[Judy]

As Pedro mentioned above, he wasn't able to attach a file, so I'm doing it for him (I hope!)

[egilmore]

Judy , thank U for your post . could U please post a copy of which on the The Reject Shop ( TRS ) thread . Thanks and congratulations on your much improved IT skills ...cheers eG

[Judy]

LOL eG - thanks! Pedro taught me all I know, well, about attaching files to Sharesguru posts anyway. I'll attach it to the TRS thread.

[Pedro-Egoli]

Thanks to Judy and LJ for their ready assistance.

On original spreadsheet I did there were a few that did not match up with the spreadsheet from RM.

Have since rectified these and as Administrator has hopefully solved my problem with attaching files the new spreadsheet is attached.

The formulae in cells previously highlighted in red have been amended as follows
G16 =INT(G7+G14+H3-H4)

C19:G19 =C17/(C8+(C12*50%)-(C13*50%))
H19 =AVERAGE(C19:G19)