KING WAN CORP -- loads of cash

Steady steady at 33 cents, refusing to let me buy in more at 30 cents.

Why I luv King Wan: The dividend yield is a solid barrier to downside risks. The dividend will be supported by its strong operating cashflow. Just look at its operating cashflow track record of S$7m, 8 and 13 in FY2011, 12 and 13.

The annual dividend of 1.5 cents requires a core net profit of onlyS$5.2 million. And you know, their capex is minimal. That's the beauty of it.

If you accept that the 1.5 cents is quite assured, the dividend yield of 4.7% (stock price 32 cents) can be viewed confidently as a barrier to a sharp fall in the stock price .

Next, consider the KTIS shares that King Wan holds and which already are valued at nearly S$50 million. OSK DMG expects a 1.5 cent a share to be returned to shareholders a year over 10 years -- it's on average -- the yield gets bumped up to 8.5%.

Aside from this juicy yield, it's reasonable for investors to expect a double-digit capital gain as the stock price adjusts upwards and the yield gets compressed (for late-comers to the party ) in the next few months (?) or whatever period. Let's watch .

I have just stumbled on this CIMB report dated July 2012. At that time, King Wan was trading at just 18 cents. How many people got in for a 78% ride up till today? (not me )

research.cimb.com/index.php?ch=5014&pg=5021&ac=47091&bb=file

OSK-DMG put out another report today. I can't find it on www.remisiers.org but it's on nextinsight's thread
www.nextinsight.net/index.php/forum/3-sg...s-say?start=18#14469

The target price is 43 cents which will yield 7% dividend yield. Currently at 31 cents, the implied yield is 9.7%, since the touted dividend is 3 cents a share.

King Wan is absolutely resilient. Refused to be pressed down and it has stayed its ground at 31 cents. This validates my thesis that the yield is solid. 3 cents a year on 31 cents stock = 9.68% yield.

In fact, when this yield becomes more apparent, the yield will get compressed to around 7% and there is capital gain for the early birds. Just my 2 cents !

Cannot be budged. Holding at 31 c. Who are the buyers? If this doesn't come down, how am I going to get in?