19-02-2014, 07:17 PM
(19-02-2014, 06:04 PM)felixleong Wrote:(19-02-2014, 05:13 PM)Investmentrealm Wrote: I bought this counter at 20 cents last aug after I studied the first quarter report. However, at current price of 28, I still think it has not reach its full potential. Anyone has a target price for Valuetronics? I am expecting dividends of at least 3 cents this year with the cash pile they are holding.
I value it at one times its book value, however S-chips historically tend to trade at a discount to book.
Yeah the dividends is very attractive.
Is Valuetronics considered a S-chip? If I'm not wrong, it's a HK based company.
I would value it slightly above book value. Although for most manufacturing companies, they normally trade below book value. Main reason is because Valuetronics has zero bank debt and has almost 18 cents per share of cash on hand.