Utilising the dividend cover of a company, the current risk free rate of return available in the market e.g. the the 12 month NCD yield as well as an expected return above that of the risk free rate which will compensate the investor for taking the risk for investing in equities, it is possible to determine the potential, fair value of a share.
Using the above criteria, I'll post the results under this topic from time to time, focusing on shares where there is considerable upside versus the current price
Date,Share,Current Price©,economic value(E),Difference or upside=E-C(%).
10/03/2011,MMI,16.48,24.00*,48%
*Excludes special dividend
10/03/2011,AVI,29.89,43.51,47%
25/03/2011,Metair,13.99,18.57,33%
29/03/2011,VODACOM,77.40,103,33%
05/01/12,RACEC,0.45,0.86,91%
17/01/12,ELLIES,2.75,3.95,44%
19/01/2012,BSI,0.70,1.14,63%
15/02/2012.MND.68.50.93.00,40%
20/02/2012,One Logix,1.80,2.61,45%
24/02/2012,PAN,2.13,2.93,38%
13/03/2012,SOL,380,515.72,36%.
10/03/2011,AVI, 46.30, 55.95,21%
19/04/2012,DATACENTRIX,4.90,6.71,37%
08/06/2012,RACEC,0.40,0.89,123% (Up date)
27/08/2012,JDG,41.51,60.76,46%
27/08/2012,OLG,1.85,2.78,50%
18/01/2013,INVESTEC(INL AND INP),64.14,84.00,31%
25/02/2013,OLG,2.28,3.00,32%( Update)
Red =Not yet achieved
Opportunities are made up easier than losses.