E&E - Charts & Valuation

Historical chart, 1994 - 2008

Historical low - 30/01/1995: US$0.451

Historical high - 29/09/1997: US$3.799

Unconditional offer to minority shareholders by Kingboard during its acquisition of E&E in 2004: US$2.85.

Stock price plunged below major trend lines during the crash in Sep-Oct 2008. ='(

1-year chart, 2008*

*Up to 26 Nov, 2008

Recent low - 30/10/2008 : US$0.810
Recent high - 13/04/2007 : US$2.674

During the year, Kingboard has acquired a total of 679,000 E&E shares at an average price of US$1.423 (with the bulk of transactions in October), raising its total interest in E&E to over 71%.

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Basic Share data

Number of shares in issue as at 30/09/08: 178.9m (excluding treasury shares)
Free-float: 18.8% (ie. 33.6m shares)

Last traded price as at 26/11/2008: US$0.870
Market capitalization: US$155.6m

(As at 30/09/2008, cash per share: US$0.392m, NTA per share: US$2.04)

My Valuation

Using PE ratio

Current PE (based on FY2007 fully diluted EPS): 4.51

Current PE (based on YTD 3QFY2008 fully diluted EPS): 4.15

Assuming PE of 8, base on YTD 3QFY2008 fully diluted EPS, price = US$1.677

Using Gordan's Dividend Discount Model

Dividend yield (based on dividend of US cents 20.5 paid in FY2007): 23.6%

(Interim 8.0 US cents + Final 4.5 US cents + Special 8.0 US cents)

If divdend rate = 12.5 US cents per share, dividend yield: 14.4%.

Number of years to recover investment through dividends: ~ 7

Assuming dividend rate at 12.5 US cents with 0% growth rate and required rate of 9%,
Price = US$1.389 (very conservatively, I would add.)