Low budget (and healthy) dinner.

This was what I had for dinner just now:

Home cooked. Healthy for the body. Healthy for the wallet. Delicious too.

Related post:
AK71 bought healthy lunch!

Old Chang Kee: Almost 70c a share.

On 30 May, I mentioned that Old Chang Kee's shares at 56c a piece were not expensive and that with a PER of 11.29x, I thought Old Chang Kee fairly valued.

Today, Old Chang Kee's shares hit a high of 69c before closing at 67.5c. It is now 20.5% higher than where it was on 30 May and 160% higher than my entry price.

At 69c, PER is 13.9x. This does not sound cheap to me. However, chatting with someone who is vested in Breadtalk recently led me to wonder if I have been too conservative in my valuation of Old Chang Kee's stock.

Breadtalk's full year EPS in 2012 was 4.263c. At 90c a share, its PER is more than 21x! Even though its EPS improved some 14.8% in 1Q 2013, annualised, we could still be looking at a PER of more than 18x. If we were to compare with Breadtalk, Old Chang Kee seems relatively cheap.

Assuming that Old Chang Kee's EPS stagnates, to reach a PER of 18x, its stock would have to trade at 89c per share. Is that going to happen? Your guess is as good as mine.

Related post:
Old Chang Kee: More free curry puffs on the way.