My initial price target of 87 cents (set last month)is almost met.
Is there further upside on UMS?. I am holding on to my holding as I believe that there is further upside to go. The bonus issue will add to liquidity of the stock which is currently cum dividend of 3.5 cents.
I do not discount the possibility of Applied Materials raising its current stake of 6% - would be a strategic move to strengthen its partnership further.
UMS continues its breathtaking run and it hits 93 cents yesterday. Its 1Q2014 results were strong with 63% net profit increase and 63% jump in FCF. Management expects its business momentum to continue into 2Q and possibly into 2H14.
AMAT reported impressive 2Q results this morning - net sales up 19%, EPS rose 75%, business orders up 16% and operating margins at highest level in 3 years. This reinforces the outlook on UMS.
Currently, UMS is on cum bonus and dividend. At current price, projected dividend yield is about 7.5%.
In my view, there is still upside on the stock price.