Straco -- gem?

Dongdaemun
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10 years 6 months ago #16738 by Dongdaemun

Replied by Dongdaemun on topic Straco -- gem?

I hope no one dismisses casually the 37.5 -cent level that Straco has now climbed too just because there are only 18,000 shares done. It's a gem and some fund manager must be paying up for it.

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Rock
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10 years 6 months ago #16765 by Rock

Replied by Rock on topic Straco -- gem?

Straco had break past 35 cents strong resistence and it is done at all time high of 37 cents. Although the volume done is low there are 52 lots queueing to buy at 37 cents. Low volume is more contributing to lack of sellers.

I believe buyer interest are anticipating a good set of 3Q 2013 result which is in early November.

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Dongdaemun
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10 years 6 months ago - 10 years 6 months ago #16817 by Dongdaemun

Replied by Dongdaemun on topic Straco -- gem?

Hey Rock, you are into this stock too? Well done. What do you reckon is the fair value ? Today closed at 37 cents on 70,000 shares traded. It should touch 40 cents before long, as some fund manager must be quietly accumulating. :cheer:

Last edit: 10 years 6 months ago by Dongdaemun.

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Rock
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10 years 6 months ago #16827 by Rock

Replied by Rock on topic Straco -- gem?

Hi garl, personally if Straco able to perform yearly and increase its dividend yearly, I would like to hold onto this stock. Maybe I will target Straco at max PE 20X.

What I like about Straco are:
1) Resilence business
2) Able to grow its profit yearly
3) Good profit margin (49%)
4) Cash-rich & no debt
5) Paying out perputual dividend ( over the years dividend increased from 0.25 cents to 1.25 cents)

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Dongdaemun
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10 years 6 months ago #16978 by Dongdaemun

Replied by Dongdaemun on topic Straco -- gem?

Rock,

If PE of 20, the stock price = 60 cents!

For this solid almost zero-risk business with high free cashflow, PE of 20 is fair and even cheap.

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Rock
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10 years 6 months ago #16985 by Rock

Replied by Rock on topic Straco -- gem?

Straco 3Q2013 result is around the corner. I have scan through the past few years result, Straco 3rd Quarter is the best quarter in term of revenue and profit.

For this coming quarter result I expect a set of good result added by the strong RMB.

For Straco PE of 15 is fair & if able to trade at PE 20 is bonus.

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