HupSteel

[BlueKelah]

Ah I see. Thanks for the insight into what he is doing.

I agree that the company is boring but as long as it is generating cash that's not funded by debt, it should be fine. As in, if we compare say IBM, AAPL with this small fish, they are up to their necks in debt and will implode when the next big one hits (too bad they aint banks so bo bailout). This one, prolly just collect and collect and collect. 4% not too bad mah.

Well, that's my take anyway.

yup over long term this counter should be ok. But do look at the macro picture also which basically is the overproduction of steel in China. With slowdown in China and poor global outlook, steel is becoming overcapacity pretty fast and this sector could be poor for quite some time with little upside for maybe even up to next 5 years. China produces more steel than all the other top 10 steel producers combined!!!

Also note the GFC time lows were 10cents so there is a downside risk back to 10cents when things are bad.

But if you are happy with 4.7%+ yield then just treat it like a high yield FD loh