Re:market correction... by MacGyver30th, Jul. 04:11 PM Market is bullish again.. Good trading period from now to early-m...
Re:Map Technology - ... by happin30th, Jul. 03:16 PM MAP is now at 6 cents. Noticed that yesterday's last trade was 1...
Re:Rokko-An Explosiv... by neontet30th, Jul. 07:41 AM all these semicon companies are doing really well.
congrats on s...
market correction by pathfinder30th, Jul. 12:10 AM With all US company result good news ending in 2 weeks time & no ...
Re:Rokko-An Explosiv... by MOSBY29th, Jul. 11:49 PM http://www.remisiers.org/research//dailyex2307.pdf
TP :$0.30...
KEVIN'S TAKE on ... INNOTEK (dividend yield of 12.5%)
Written by Kevin Scully
Monday, 01 March 2010
Kevin Scully, executive chairman of NRA Capital, wrote the following article in his blog on Saturday. It is reproduced here with permission.
YESTERDAY (Feb 26), Innotek reported its 2009 full year results. Turnover for Q4-2009 fell 17% to S$111.5mn while net profit was S$3.59mn compared to a loss of S$10.36mn in 2008.
For the full year, Innotek reported a decline in revenue of 14.3% to $361.5mn and net profit of S$9.4mn compared to a loss of S$6.3mn in 2008.
InnoTek is a precision metal components manufacturer, serving the consumer electronics, office automation and automotive industries.
The company is proposing a final dividend of 5 cents (same as 2008) which at S$0.40 gives you a dividend yield of 12.5%....this is more than its EPS of 3.24 cents.
Shareholders are literally being paid to wait for the company to unlock its value. NTA of the company is S$86 cents, while gross cash in the company is S$109.3mn and net cash of S$79.3mn giving net cash per share of S$34 cents.
The company's market capitalisation at S$0.40 = 234.5 x S$0.40 = S$93.8mn, ie it's almost backed entirely by cash.
Management is guiding for a better 2010 with Q1-2010 being better than Q12009.
EPS = 3.24 cents
PER at S$0.40 = 12.3 times
Dividend yield at S$0.40 = 12.5%
I still like the stock and because I have been selecting companies with strong balance sheets for my Stock Picks such as AEI, Armstrong and Hock Lian Seng and Innotek - you will notice that the dividend yields of these stocks have ranged from about 5.5% to up to 21%.
This is what I called being paid to wait for the market to recognise the company's value.
It remains in my Stock Pick list - with the utilisation of its surplus funds through acquisition, a special dividend (my speculation) or even a possible takeover by an investor (dont think its likely) at NTA being events that will lead to a rerating of the stock. Please refer to my Stock Pick section on how much I think the shares are worth, ie my price target.
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