VICOM

[pianist]

Director Heng Chye Kiou Disposed his shares through private placement. His deemed interest decreased substantially from 1.454 % To 0.318 %.
Seems like some big fish want to get a bigger bite of the shares and yet couldnt get enough of them through the market.

[shanrui_91]

No wonder why there was a 1m share bought at $3.98 yesterday. In fact, he is not just a Director, he is the CEO. He was appointed executive director in 1995 and CEO in 2003.

Could it be that he is retiring? Really looking forward to the AGM...

[Musicwhiz]

No wonder why there was a 1m share bought at $3.98 yesterday. In fact, he is not just a Director, he is the CEO. He was appointed executive director in 1995 and CEO in 2003.

Could it be that he is retiring? Really looking forward to the AGM...

Two ways of looking at it:-

1) A big buyer was interested in accumulating 1,000 lots and could find no seller in the open market; therefore he contacted the CEO and requested for a married deal of shares at $3.98. The buyer may see long-term potential in holding on to VICOM shares.

2) The CEO thinks the current price is fair for him to divest a portion, and he plans to use the proceeds to enjoy a possible retirement. 1 million shares @ $3.98 is, after all, a tidy sum of $3.98 million, so it can probably pay for a very very good holiday!

I am more inclined to put my faith in Scenario 1, though.

[brattzz]

waos! it went all the way to $4.24 today!! :O

[Drizzt]

this is the stock that make me look so stupid

[vicom76]

Should I enter at $4.25?

[Musicwhiz]

Full year yield is 4.15% based on last done price of $4.24. And that is including the special dividend. Unless they can continue to grow the business, otherwise looks quite fairly valued.

[shanrui_91]

Should I enter at $4.25?

At 4.25, this will be at a price of 4.15 after discounting the dividend that's priced into it, which represent a P/E of 14.3 with 46m of cash net dividend.

Net profit has been growing at a compounded rate of 12% for the past 7 years.

If you are holding it for at least 5 years and you believe that net profit can continue to grow at the same rate for the next 5 years, then definitely.

However, if you are not going to hold it for 5 years and neither do you have an understanding or strong faith as to how and why its profit can continue to grow at that rate, then it will be a no.

Price is merely a function of what you pay for the value. Pay too much for a good business and there can never be a good stock. It simply makes no sense to me why one chooses to go in at 4.25 when he could have went in at 3.80 just because the stock has been rising for the past few weeks. Even if one waited for Fy 2011 result, it was only trading at 3.93 the next day morning.

Never get tempted to enter into a stock just because the price seemed to rise non-stop. At least try to understand why it did so.

[kaykay]

It is too expensive for now. You should wait. Though you may need to wait for a really long time or it may not fall back to its historical average PER.

I noticed that this counter has been trading at a trailing PER of low teens to single digits for years. This counter is trading above its usual PER. Has the market fully realize and price this counter at its correct valuation or is it a case of a rising tide lift all boats ?

[Drizzt]

It is too expensive for now. You should wait. Though you may need to wait for a really long time or it may not fall back to its historical average PER.

I noticed that this counter has been trading at a trailing PER of low teens to single digits for years. This counter is trading above its usual PER. Has the market fully realize and price this counter at its correct valuation or is it a case of a rising tide lift all boats ?

thats what people are saying at 3 bucks haha!

if the PER is larger market is appending a higher growth rate. do u believe in that growth rate?