Design Studio - exploded!

neontet
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14 years 2 months ago #3144 by neontet

Replied by neontet on topic Re:Design Studio - exploded!

good set of results - within expectations. PE as expected now about 6X based on 10 cent EPS. Dividend a bit disappointing - cos only 1.25 cent, was thinking of 2 cents. Anyway, next time just follow the big boys early and enjoy capital apprecation. Prudential Asset Mgt was buying Design Studio, now has 13 million shares, according to what i read here www.nextinsight.net/content/view/1927/79/

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Dongdaemun
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14 years 2 months ago #3146 by Dongdaemun

Replied by Dongdaemun on topic Re:Design Studio - exploded!

Design Studio\'s PE is 6X based on EPS of nearly 10 cents. However, if u take out its cash hoard, the PE is really low. Design Studio has very little debt, btw. Quite a solid business.

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mokooi
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14 years 2 months ago #3151 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

drop nearly 4% !!! :blink: what gives?? results not good enough for everybody ?? :laugh:

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newbie123
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14 years 2 months ago #3153 by newbie123

Replied by newbie123 on topic Re:Design Studio - exploded!

Think the 1st three quarters result are too good. That\'s why ppl expect too much in the final 4th quarter. If quarter 1 and quarter 4 result were to swop, then perhaps, the expectations would be different... I also vested in DS too... Hope it can cheong to at least 0.80 cents

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sumer
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14 years 2 months ago - 14 years 2 months ago #3162 by sumer

Replied by sumer on topic Re:Design Studio - exploded!

I understand a foreign broker was buying 1-2 days ahead of the results, pushing the stock up from 60 to 63 cts, and yesterday, they sold on the news. This was a short term trade, and I would not be too worried about it, unless fundamentals for the company have changed, which they have not. Having said that, some stock charts (esp leaders) do look worrying (eg Genting\'s breakdown, CityDev sitting precariously on support line, etc), so it is probably not a good time to buy too aggressively, irrespective of stock fundamentals, as mkt risk could be the overriding concern.

Last edit: 14 years 2 months ago by sumer.

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Mel
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14 years 2 months ago #3168 by Mel

Replied by Mel on topic Re:Design Studio - exploded!

Musicwhiz gave this interestin comparison in CNA forum: DS gave 1.25c interim and now 1.25c final dividend. That\'s 2.5c full year. Dividend yield is about 4.13% based on last done market price of 60.5c. Cash Balance is about S$36.3 million as at Dec 31, 2009. Issued share capital is about 255 million shares. This means a payout of S$3.19 million, or about 8.8% of current cash balance. Cash flows from ops are very healthy at S$18M. Comparing to Kingsmen (KC), KC gave 1.5c interim and proposes 2c final dividend, making it 3.5c for full-year. Based on last done share price of 59.5c, that\'s a yield of 5.88%. Cash Balance is S$22.8 million as at Dec 31, 2009. Issued share capital is about 189 million shares, so payout is about S$3.78 million or 16.6% of cash balance. Operating cash flows were weak at just S$1.3M, but we have to account for the unbilled revenues from Universal Studios, so the impact is not fully certain. One has to ascertain a few factors in this simple computation:- 1) Can the dividend be sustained for each company? I note DS has paid 1c for FY 2008 and 1c for FY 2007, so this represents a jump of 150% in terms of dividend. KC has paid 3c for FY 2008 and now 3.5c for FY 2009, so the increase is just 16.67%. Consistent dividends have been paid by both companies, and their businesse are also improving. 2) Is one buying for the yield or potential growth? If buying purely for yield, KC may seem a better bet. But if DS can be viewed as a fast grower which can grow earnings fast while retaining more cash, then capital appreciation may seem a more attractive proposition than dividend yield. It\'s for the investor to decide and evaluate. 3) Is the company encountering a \"peak\" and are growth in top/bottom line sustainable? It will be prudent to ask this of both companies and evaluate the industry they are in, and the potential business they can capture, in order to ascertain the long-term benefits of buying and holding. A weak business with an easily scalable moat may not be able to hold on to market share and can be challenged by competitors.

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