TA and DCF of Bogdanka

Hi,

Just started an August. So I think that is a good time to have a second short analysis of a public company from WIG30 Index.

Lubelski Wegiel "Bogdanka" SA is one of the leading producers of coal in Poland, outstanding against the industry in terms of financial performance, efficiency coal mining and investment plans assuming making of new fields.

Sold by the Company Coal energy is mainly used for the production of electricity, heat and cement production. The Company's customers are mainly industrial companies, especially companies operating in the electricity industry located in the eastern and north-eastern Poland.

August 20th, the company will publish the financial statements for the first half of 2014.

chart 1. quick liquidity ratio, 2014-08-01

The value of this ratio should oscillate in the region of 1.00. This means that in this case the company does not cover in 100% of its obligations as they fall due.

chart 2. current liquidity ratio, 2014-08-01

Indicator calculates the ratio of total current assets to current liabilities.

chart 3. the rate of recovery, 2014-08-01

Non-current assets + long-term liabilities to non-current assets. The level of this ratio should not fall below the level of 1.00 The lower level indicates that the financing of assets by current liabilities.

chart 4. debt to equity ratio, 2014-08-01

Growth rate is greater involvement of external financing in relation to the sources of their own.

chart 5. cover liabilities by equity, 2014-08-01

This ratio shows what the company's dependence on foreign capital, as well as compares debt companies with capital invested by shareholders. It shows how the size of the debt attributable to shareholders every zloty contribution. Since this index is well illustrated by the company's ability to repay liabilities. Too low index values ​​may indicate a high risk of loss.

chart 6. ratio net debt/EBITDA, 2014-08-01

calculated as the ratio of net financial debt to operating result with amortization and depreciation (EBITDA) for the last 12 months.

chart 7. TA of Bogdanka, 2014-08-01

At present company's share price is a lateral trend with a slight downward slope. In connection with the appearing negative attitudes on the market can be expected to achieve yet another wave around in 98 - 100 PLN where wy will should buy stocks.

My DCF Model indicates 144 - 152 PLN with probability of 79-81%.

So, my recommendation now is WAIT

When reaching the higher level than the 121 - 123 PLN, change the recommendations LONG.

regards,

oscarjp

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