Straco closed this week at 76.5 cts which is trading 18.5x PE and 14.5x PE backing out it's cash.
For Fy 2014 Straco if net profit increase by 25% or 50%:
Net profit increase by 25%:
It is price at 14.6x PE and 11.5x PE backing out it's cash.
Dividend pay out of 50% = 2.5 cts, yield = 3.2%
Net profit increase by 50%:[b/]
It is price at 12.2x PE and 9.7x PE backing out it's cash.
Dividend pay out of 50% = 3 cts, yield = 3.9%
As long as Straco able to grow it's revenue and net profit yearly, increase it's dividend it's share price will follow. Straco share price seen fairly price today but will becomes cheap tomorrow.
About 9 years after its 2004 IPO, Straco's share price was still trading at the same level -- ie 26 cents. Many shareholders would have suffered anxiety over the non-performance.
Around Jan 2013, NextInsight wrote its first article on Straco.
Today, about 1.5 years on, the share price has reached 77 cents. Many shareholders are suffering a different anxiety -- sell or don't sell? Will the price make a U-turn?
Non-shareholders ask: Is it too high to Buy now?
Haha....:woohoo:
Straco encouter some profit taking yesterday, selling down from 76.5 cts to 73 cts. Today there is hardly any profit taking, only 1 lot done at 73 cts.
Those focus on profit had sold out and those who believe Straco has much to offer will hold for long term.
Straco closed this week at 76.5 cts which is trading 18.5x PE and 14.5x PE backing out it's cash.
For Fy 2014 Straco net profit increase by 25% & 50%:
Net profit increase by 25%:
It is price at 14.6x PE and 11.5x PE backing out it's cash.
Dividend pay out of 50% = 2.5 cts, yield = 3.2%
Net profit increase by 50%:
It is price at 12.2x PE and 9.7x PE backing out it's cash.
Dividend pay out of 50% = 3 cts, yield = 3.9%
As long as Straco able to grow it's revenue and net profit yearly, increase it's dividend it's share price will follow. Straco share price seen fairly price today but will becomes cheap tomorrow.
My illustration above posted on 5th July 2014 shows Straco profit increase by just 25%, it is still price at 14.6x PE FY2014 & 11.5x PE FY2014 back out it's cash - share price at 76.5 cts. Dividend of 2.5 cts, yield = 3.2% is still quite attractive.
If we believe Straco can increase it's profit by more than 25%, Straco definitely has much to offer. To ripe the full potential of Straco we should focus on the grow potential rather than on share price increase. Share price will eventually catch-up with company performance.
I strongly believe Straco has much to offer. Seem over price today but tomorrow it will become cheap. Reason: Profit grow will soon catch-up. Straco is truly a gem.
Straco yesterday 279 lots selling are all mopped up by the buyers from 74 cts all the way to 78 cts and it last done at 77.5 cts. Smart money knows Straco have much more to offer.
Those already cash out had reqard their decision. I'm in no hurry to cash out and I'm enjoy the gradual ride up because I strongly believe Straco has more to offer.
