INNOTEK

jinraidx
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14 years 2 weeks ago #3588 by jinraidx

Replied by jinraidx on topic Re:INNOTEK

Mgmt buyback is due to better yields vs keeping the cash or distributing as dividends. If the firm is able to earn a return that is higher than 20% on invested capital, why would he buyback shares? He will just throw all the capital to continue making his products and selling them. The yield for price of $0.595 is 8.4%. However, assuming he can pay for another 4-5 yrs, one can get back at most $0.2 - $0.25 per share of cash. Thats not even 50% of invested money one puts into the stock over 4-5 yrs. Mgmt stated 2010 will improve but less than 2007. If stock price goes up much more, do you think management will pay at the same yield as promised? I think they will rather up the buyback mark to 15% of total capital. What I am saying is at current price, one needs to be careful what price one buys the stock at. Clearly at $0.595, there lies some potential risks. Let me know your thoughts on this. More than happy to discuss this issue.

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Punter Lim
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14 years 2 weeks ago #3597 by Punter Lim

Replied by Punter Lim on topic Re:INNOTEK

yoh jinraidx, Name me 1 blue chip that pays you dividend equals to 50% of your invested money in 4 years. beside 4 years who dare to ensure you8 anything.... nowadays people have shorten their investment period. 8.4% for a year is already very good... look at soildbuild trading at $1.50 paying the same amount of dividend as Innotek... Anyway it up to the smart investor to guage where to put their $$$..... ;p

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Mel
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14 years 6 hours ago #3671 by Mel

Replied by Mel on topic Re:INNOTEK

Going

tomorrow .... 5-cents a share in dividend. Pay date is May 26. Stock goes to 57.5 cents when it\'s

. Then in a few days/weeks time, comes the Q1 results. Chances are it will be solid results. Stock price goes back up to 62.5 cents. Just my guess! :laugh:

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myhyip4me
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14 years 3 hours ago #3673 by myhyip4me

Replied by myhyip4me on topic Re:INNOTEK

Shouldn\'t it be 0.565 as it closed at 0.615 today ?

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Joes
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13 years 11 months ago #3722 by Joes

Replied by Joes on topic Re:INNOTEK

Innotek closed at 48.5 cents, after it went ex-dividend on Tuesday. Adding back the 5 cent dividend, the stock is something like 53.5 cents. Kevin Scully in his blog has written the following: Innotek is in a very unique position as a tech stock. It has a very strong balance sheet with gross cash of more than S$100mn. Its NTA is S$0.85 and its set to have a good Q1 and Q2 and also 2010 in terms of profits for its remaining stamping business. On PER, dividend yield and price to book, the stock is attractive. So even though its gone ex-dividend, it still warrants a place in my portfolio and will review my price target once its Q1-2010 results are released. But tech stocks are always vulnerable to the cyclical nature of their business and earnings. For the next two quarters at least and unless otherwise guided by management, the outlook remains good. www.netresearch-asia.com/netresearchV4/R...blog_no=518#comments

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Joes
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13 years 11 months ago #3735 by Joes

Replied by Joes on topic Re:INNOTEK

Innotek is now 51 cents (+2.5 cents) which adds up to 56 cents if you include the 5 cent dividend for those people who continue to own the stock. The company has not done a share buyback during the current blackout period (which is 2 weeks before the Q1 results announcement). After that ....... hehehehe.... :woohoo:

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