VICOM

VICOM very good business so many cars on the road the higher price of COE the longer people will tend to keep their cars and go for more inspection rain or shine, good times bad times market boom or bust cars will still need to go for inspection that's recession proof.

vested

Anyone checked how their revenues are co related to the construction industry? Believe they derive quite a bit of profits from inspection works and other regulatory tests.

Can't quite believe the hit on vicom

Even good companies get beaten down due to sentiments. It's actually an opportunity to get the solid company at a cheaper price.

(27-09-2011, 10:08 PM)Zip113 Wrote: Can't quite believe the hit on vicom

You make it sound like it got assassinated (i.e. hitman)!

PE is over 14 when it's parent is under 13. Div yield below 4%. At 3.25 it's somewhere in the middle between 52wk high and low, where many including it's parent are much lower. I say it has more room to fall (before I'd decide to add more).

(28-09-2011, 09:29 AM)violinist Wrote: Div yield below 4%.

Using interim dividend for 1H 2011 of 6.9 cents and last year's final dividend of 6.9 cents, total projected is 13.8 cents. Based on last done price of $3.25 per share, yield should be around 4.25%.

May I find out which numbers you used to compute yield? Thanks.

(28-09-2011, 09:39 AM)Musicwhiz Wrote:

(28-09-2011, 09:29 AM)violinist Wrote: Div yield below 4%.

Using interim dividend for 1H 2011 of 6.9 cents and last year's final dividend of 6.9 cents, total projected is 13.8 cents. Based on last done price of $3.25 per share, yield should be around 4.25%.

May I find out which numbers you used to compute yield? Thanks.

Let's not forget the usual payout of special dividends if the Management doesn't seek to retain 50% of the profit. Last year, 16.1 cents was declared (63% payout ratio).

(28-09-2011, 09:39 AM)Musicwhiz Wrote:

(28-09-2011, 09:29 AM)violinist Wrote: Div yield below 4%.

Using interim dividend for 1H 2011 of 6.9 cents and last year's final dividend of 6.9 cents, total projected is 13.8 cents. Based on last done price of $3.25 per share, yield should be around 4.25%.

May I find out which numbers you used to compute yield? Thanks.

I haven't update, just use previous 12 cents. I can see from past 2 years that dividends/earnings could be on the uptrend, but we are never sure. Anyway, when so many blue chips dividend yields are above 6%, it is far from attractive (to me).

(28-09-2011, 02:30 PM)violinist Wrote: Anyway, when so many blue chips dividend yields are above 6%, it is far from attractive (to me).

I'm quite surprised - you mentioned there are "many" blue chips yielding >6%? Maybe you'd like to name a few?

My personal understanding is that for blue chips like SIA Engineering and ST Engineering, the yield is just 5+% currently. Only Starhub is yielding around 7+%.

Thanks.