I value Straco at 65 cts, dividend yield about 3.1% is calculated base on FY2013 result. When by the time Straco 1st Q or 2nd Q 2014 result is out, Straco at 65 cts should not be a problem.
Yeng, your target for Straco at 80 cts is possible. Just take Straco profit for FY 2014 increase by only 25%, EPS will be 5 cts per share. Dividend at 50% pay out will be 2.5 cts per share. At 80 cts it is trading at 16x PE and backing out its cash, the stock is attractively priced at 12x PE. Dividend yield is attractive at 3.125%.
Lotustpsll, your parameter of minimum dividend yield of 6% for Straco is way to cautious. Glad you finally decided to take position.
It very difficult to find a Stock that is as promising as Straco with dividend yield of more than 4%. I was like you very cautious even when it was trading at 30 cts. I was very bullish on Straco before the announcement of 3rd Q 2013 result. Straco is now my top holding, over 15% of my porfolios.
Going forward this year any increase in interest rate will in fact benefit cash rich company like Straco.
Rock == yr point on interest rate is something I have not considered! However, I think one has also to weight that positive against the weakening yuan (vis a vis SGD).
Sana, you are correct in pointing out weakening yuan (via a vis SGD). Straco 3rd Q 2012 result was hit by currency lost. I believe Straco management shall have plan in hatching currency risk by now.
Inportant is, Straco able to continue to increase it's revenue, generate net cash from operation and cash balance. In other words Straco real business on the ground is fantastic.
This was probably the 1st coverage of Straco on nextinsight. Jan 2013, at that time Straco was 26-28 cents. If I could rewind the clock, I'd sell the house and buy the stock. Haha...dreaming only
Straco high free cashflow since the report in January 2013 now had increase to SGD 130m. Net margin inprove further to to 48.6%.
At January 2013, price at 28 cts and dividend of 1.25 cts = dividend yield of 4.46%. After FY 2013 result, it was trading at 50 cts. With dividend of 2 cts = dividend yield of 4%.
Straco share price had already increased by 20% to 60 cts, it is trading at 15x PE and backing out its cash, the stock is still attractively priced at just over 10x PE and dividend yield of 3.3%.
Val, if you miss the opportunity and if you will to see beyond the next few quarterly results, its performance will be the catalyst for the next share price to rise further. But very inportant; manage your risks. Straco in my porfolio has increase to 20%.
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