hello entdev: i have not been following this stock but its 2H rebound is impressive. The dividend payout has increased and the yield is generous at 8% based on the current stk price of 17.5 cents. Looks like a stock I would like to dig deeper into. Who knows it may really be a gem. What do you see in this stock?
Hi Dello, I like the stock for the following reasons :- 1)Attractive yield. ( about 8%) 2)Management\'s commitment to pay dividend to shareholders. They have done it consistantly for the last 4 years. 3)Confident of its new medical equipment manufacture business that its getting into. 4)Moving upstream in the manufacture of licensed products. Regards.
An OCBC research report says a fair value of S$0.32 for Valuetronics. Below is an except of the report:- Valuetronics Holdings: Sales order gaining traction Summary: Valuetronics Holdings (VHL) reported its 4QFY10 results last Tuesday. Both revenue and net profit were stronger than expected at HK$307.0m (+92.7% YoY) and HK$22.0m (reversing HK$2.7m loss in 4QFY09) respectively. The encouraging set of results, we note, came after several quarters of depressed margins from an unfavourable product mix, enlarged operating costs and impairments/provisions. However, 4Q showed firm signs of improvements, both in terms of demand and margins, and are likely to continue in FY11. As such, we are raising our FY11 forecasts by 5.2-11.5%. Our fair value is also lifted to S$0.32 from S$0.29 previously due to the earnings upgrade. We believe VHL is well-positioned to leverage the global economy recovery, considering its still healthy financial position. With an upside potential of 88.2%, we maintain BUY on VHL. (Kevin Tan)
The good dividend yield is enabling the stock price to stay firm at 17.5 cents, which is actually higher than the 17 cents at the start of the week. Good luck.
