KING WAN CORP -- loads of cash

Joes
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10 years 10 months ago #14345 by Joes

Replied by Joes on topic KING WAN CORP -- loads of cash

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

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Rich
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10 years 10 months ago - 10 years 10 months ago #14427 by Rich

Replied by Rich on topic KING WAN CORP -- loads of cash

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 .

Last edit: 10 years 10 months ago by Rich.

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Joes
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10 years 10 months ago #14440 by Joes

Replied by Joes on topic KING WAN CORP -- loads of cash

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 :angry:

)

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

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Rich
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10 years 10 months ago #14483 by Rich

Replied by Rich on topic KING WAN CORP -- loads of cash

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.

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Rich
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10 years 10 months ago #14536 by Rich

Replied by Rich on topic KING WAN CORP -- loads of cash

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 !

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zane
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10 years 9 months ago #14727 by zane

Replied by zane on topic KING WAN CORP -- loads of cash

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

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