Vicom -- another good set of profits

Can't find a thread on Vicom so I felt I must start one to chat about this excellent business which has been highlighted by NextInsight.

[url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/4101-vicom-a-5-bagger-in-5-years-but]VICOM: A rare 5-bagger in 5 years but....Would you buy it now?[/url]

Made $5.949 million in 2Q....The increase is not exceptional, at 5.3%, but this business is a true cash cow. Low capex, assured cashflow, etc.

Compare that with SBS Transit, its major shareholder. Kana whacked by higher fuel & electricity costs. Also, ticket prices cannot rise enough to keep pace becos of political considerations.

Pity the stock price of Vicom has gone up so much. If only it were still at below $1..... Not vested (yet).

Have just realised that Vicom is not just about vehicle testing/inspection, tho that's what it is largely known for. This biz segment accounts for only 30% of its revenue in 2010. Vicom has a division called SETSCO (which deals with non-vehicle testing and inspection) and handed in the lion's share of 61% of its revenue.

Now what exactly does SETSCO do and what are its margins? What is its competitive edge? There must be strong points ..... Who can shed more light?

I have just read that Musicwhiz has added Vicom to his portfolio. He likes the stock but agrees it is not cheap at S$3.40 .  see sgmusicwhiz.blogspot.com/

Like Reck, I am curious to know more about the non-vehicle segment of Vicom's biz. Little light has been shone on this segment even tho it is the biggest revenue contributor. How confident can we be that this segment will grow ?

Heng, the long time CEO, has disposed of 1m Vicom shares that he has a deemed interest in. Left with 280K shares only (deemed interest).
Wonder who actually is the direct owner.

While some retail investors appear to be piling into the stock, the CEO is leaving. Seems like the peak.

Hi Yeh, if Musicwhiz hasnot sold his Vicom, it would be a 40% return in one year for him. Vicom has touched $4.80 now. Fantastic result, despite misgivings of buying it after a long run up. Looking at the characteristics of Vicom prior to its sizzling run, I would say that Straco is a strong candidate for a similar re-rating. Check back with me in 1 year, and tell me if I am dead wrong -- or handsomely right.
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[yeh 28-08-2011]:

I have just read that Musicwhiz has added Vicom to his portfolio. He likes the stock but agrees it is not cheap at S$3.40 .  see sgmusicwhiz.blogspot.com/

Like Reck, I am curious to know more about the non-vehicle segment of Vicom's biz. Little light has been shone on this segment even tho it is the biggest revenue contributor. How confident can we be that this segment will grow ?

Vicome's a rarity indeed but I wouldn't touch it now at $4.80. There are better deals elsewhere