Sadly sentiment on UMS has been seriously damaged by heavy insider selling (by its CEO) and AMAT. Bonus shares were credited today and expectedly more selling in store.
I have cleared most of my position. Investors would unlikely not forget this matter and would stay away from UMS for a long long time.
UMS is still a good company as long as they continue to give 4c to 6c dividend per annual (7% to 10% dividend yield) and AMAT carry on give UMS the business. I doubt the positive semiconductor business sentiments from company first quarter commentary should not suddenly change 180 degrees. Should be a good chance to accumulate on price weakness as long as the dividend holds.
Investors should compare ums to the dividend play stocks that give dividend per quarter like lee metal and silverlake axis. Currently these stocks are traded at much lower dividend yields. Either these stocks should correct downwards or ums should get a re-rating.
