Best World

Revenue and profit surged in Q4, attractive dividend, the worst seems to be over......but share price continue to drop! Interesting!

This one could do well if it can deliver Q1 profit, signalling a turnaround that is for real.

Meantime, just enjoy the 1 c final dividend (+1.25 interim) that is coming.....

For a 27 cent stock, the yield is pretty cool at 8.3%.

Despite a lousy year in 2010, the cash balance is fantastic at S$37 million which is unchanged from 2009. On top of that, they maintained their dividend payout in absolute terms and it was a huge jump relative to the profit.

This powerpoint does give an encouraging out look for the coming quarters

info.sgx.com/webcoranncatth.nsf/VwAttach...fing.pdf?openelement
 

I believe Q1 FY11 should be much better than Q1 FY10.....unless BW gives surprises again...which they are quite good at!!

sgvalue.blogspot.com/search/label/Best%20World

 We continue to like Best World International as a proxy to emerging Asian consumption, especially with its presence in Indonesia. Import regulations have hurt revenue in the near term, but we think that things will be substantially better in 2H10 with more product approvals granted. We like the business for its ability to generate strong cashflow, and the quality of management is decent.

Out of the blue (the blue yonder), after being absent for so long, Best World launched its buyback scheme, eating up 101,000 shares today and accounting for 53% of the trades done.

The stock at 26 cents is a bargain and I believe this is a signal of an improved 1Q result and beyond. provided, of course, that the buyback is sustained - instead of a fickle attempt to nibble now & then.

Last year Q1 was bad.......if this year cannot do better then last year....then not worth investing in it!!