As you can see, since 3/1/11, volume has increased powerfully to about 1 million shares a day.
There has been furious buying pressure from SSH and insiders.
SSH Adrian Ho Kim Lee has increased his stake from 6.24% last year and has been slowly but steadily increasing his holdings to 10.1%. Poh family holding companies, similarly, have been buying up the stock like there's no tomorrow. Poh Tiong Choon Holdings Pte Ltd, Poh Sin Choon Pte Ltd, Poh Choon Ann Pte Ltd ad nauseum have been buying up the stock.
This stock has been a high yield dividend star for the past 10 years, paying out dividends regularly every half year since it's listing in 1999.It is a profitable company, well run with moderate debt of $35 million, contrasted by profit level of $15 million in 2009.
In fact, last 3 years dividend yield has been 12%, 15% and 9% from 2007 to 2009 respectively.
This generous dividend yield is no doubt influenced by the fact that the Poh family and it's holding companies own much of the company.
It is also fairly priced at PE 7x, Price/NAV= 1.86x. Granted, this is a low growth stock.
Did a DCF valuation, based on it's FY2009 FCF of SGD21,000,000, 10% discount rate and 0% growth, assuming the company survives for 15 years, Intrinsic Value is at $0.80.
It's financial results for FY2010 will be coming out mid to late February 2011.
This year is it's 60th anniversary.
With the incredible buying up of this counter by insiders, I suspect there might be some good news ahead.
Hence, I bought a small position in this counter.
As Peter Lynch said, "insiders sell for a multitude of reasons, but buy for only one: they think the price will increase."
Opinions?
Disclaimer: Vested at $0.48.
Hi issac,
ReplyDeletenot sure if you are buying long term or short term? if short term, i'm not sure if it is the right price to enter now? with today having a long upper candlestick and technicals overbought and considerable selling pressure on stock today.
nonetheless, based on what you said about the fundamentals of the stock, it sure looked attractive. With insider buying making the stock even more attractive...
btw, what is poh tiong choon core business?
cheers
ming
Hi ming,
ReplyDeletethe div yield for this counter is higher than the average REIT level, even at the price i bought, at 7.2%.
There was considerable selling pressure on this counter today, so I'll see how tomorrow. I made a mistake by queueing too high.
But I suspect there's some good news coming up soon, as insiders are furiously buying up this counter.
If prices jump, I'll sell, but if drops/stagnant, I'll keep this counter as a small cap gem, with a high div yield.
PTC Log does logistics for freight, cargo, transportation and shipyard management. You might sometimes see their trucks on the roads.
It's sort of backed by the government, with the govt grooming it to become a homegrown MNC.
How did the government groom this company?
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ReplyDelete