January 2019


Stock I'm watching this month:-

CSL - CSL Ltd

Sector: Healthcare
Market Cap: 88.99 Billion
Price/Earnings: 38.12
Price/Book: 16.12
Return On Equity: 48.57%
Return On Assets: 17.70%
Debt/Equity: 107.51%

Reasons to watch: CSL is a biotech company that manufactures and market biotherapies, predominantly derived from immunoglobulins, in turn extracted from blood plasma.It also acquired an influenza vaccine business end 2015. I have been watching this company since beginning of 2018. I was impressed that Australia had such a huge global biotech company as Australia is normally known more for its mining companies. Although the company is a global leader in its field, the stock price (circa  $163 at that time), was too expensive compared to my estimated intrinsic value. I am buying this stock based on my Momentum Strategy.

Risk: The stock price is over valued based on my intrinsic value estimation and purchasing it as part of my momentum strategy. As with any momentum pick, the price momentum can reverse direction at any time.

Sentiment: Buy
Disclosure: Held
Current Price: $195.2
My Strike Price: Market Price (Discounted Cash Flow Intrinsic Value: $73)



Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.



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