UMS HOLDINGS

UMS closed out this week strongly at 72.5c, up 11.5% against last friday. Volume of shares traded was significantly better.

Projected dividend yield for FY14 is at 9.6%. Still very attractive value play.

Latest BUY call on Applied Materials:-

UPDATE: Nomura Initiates Coverage on Applied Materials on Multiple Positive Factors

March 20, 2014
In a report published Thursday, Nomura analyst Romit Shah initiated coverage on Applied Materials (NASDAQ: AMAT [FREE Stock Trend Analysis]) with a Buy rating and $30.00 price target.

In the report, Nomura noted, “The Street is preoccupied with the company's outlook for WFE spending of $37bn in 2017 and, in our view, underestimating earnings power over the next two years. We believe Applied Materials and Tokyo Electron could generate $2.00 in EPS by 2015, above consensus of $1.35 (excludes TEL merger), based on WFE spending of $33-35bn. Additionally, we see operating synergies and a lower tax rate should meaningfully boost FCF from ~60% to roughly 75%-80%. Our TP of $30 is based on 15x our 2015E EPS of $2.00 (AMAT+TEL).”
Applied Materials (AMAT) closed on Wednesday at $19.47.

AMAT broke through usd20 on close of trading this morning.

Semiconductor company Applied Materials (AMAT) reached fresh multiyear highs as AMAT stock powered higher on the back of positive comments out of Nomura.

UMS's price broke through 70 cents convincingly and is in clear skies territory. With the positive outlook for AMAT, I expect UMS's price trend to move in lock step (on up trend channel) with AMAT.

For UMS's shareholders, you would need to stay close to research reports and commentary on AMAT. Furthermore, quarterly results from AMAT are usually released a few days earlier as compared to UMS. We have a timing advantage here.

For those who are not vested, suggest you take a look at UMS. Good luck.

UMS rose to 76 cents today on relatively good volume.

UMS just announced a bonus issue of 1 share for every 4 held.

Stock closed firmly at 77 cents today.

Rationale of the bonus issue is explained by UMS as follows - "to increase the issued share capital base of the Company to reflect the growth and expansion of the Group’s business".

This is a good step to reward shareholders and reflects well on the positive trend of the semi-conductor industry and its close business partnership with Applied Materials - the leading global semiconductor equipment manufacturer.

The increased liquidity will be good for the stock and will likely to attract more investors.