Straco -- gem?

But what is important is that the company is looking at expanding its business model. Management is aware that Straco needs to expand.

The limiting factor to Straco's 2 aquariums is the fixed capacity for visitors. At some point, it gets crowded and the revenue/profit cannot grow. Are they still far away from those limits?

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Straco Quarterly Revenue In 2013

1st Q 2013:
Revenue = SGD 11.3m

2nd Q 2013:
Revenue = SGD 23m

3rd Q 2013:
Revenue = SGD 30.5m

4th Q 2013:
Revenue = SGD 14.6m

Yeng, by looking at Straco 2013 quarterly revenue, 3rd quarter being the best season may be crowded during some days as you had point out. But looking at the revenues for the other 3 quarters it should not have over crowded problems except for public holidays or weekend. It should be able to cater for more visitors.

Some time last year I had visited RWS 'Sea Aquarium' during a public holiday with my family. It was very crowded and visitors had to wait for about 3 hours. We register as 'Special Visitors' by paying additional fee. That reduced our waiting times to one and a half hour. There are many visitors willing to pay additional fee too. It takes more than half hour just to register and pay additional fee.

By looking at the revenue, Straco should be able to growth its revenue & profit for the next few year.

Lotustpsll had point out "What is important is that the company is looking at expanding its business model. Management is aware that Straco needs to expand".

Struck 52 cents! I wonder where it will peak? 70 cents?
A very crucial development is the successful bid for a project unknown. Will it make good sense?

In another space, I think of Oxley's bold entry into various property markets --- and investors chased up the stock on news of new property projects.

5 Reasons Why Straco Is A Promising Stock For Value Investors

1. Straco over 6 years profit compounded at 40% from 2009-2013.

2. Straco able to increase its profit margin yearly, Fy 2013 increaced by another 12.6% to 48.6% which is one of the best stock listed in SGX.

3. Straco is debt free. It has a cash-generative business model coupled with strong pricing power, resulting in pretax margin of 68% and a cash pile of SGD130m. (15 cts per share)

4. Straco dividend paid over 6 years increased from 0.25 cts to 2 cts. Straco is an outstanding stock which can be classified as "Perpetual Dividend Raisers"

5. Straco expects to benefit from rising domestic travel as the Chinese government looks to balance its export-driven economy with higher domestic consumption, driving steady growth across its tourism assets.

Straco at 65 cts, dividend yield of almost 3.1% is still attractive, as compare to CPF rate of 2.5% and Bank rate of less than 1%. At 65 cts it is trading at 16x PE and backing out its cash, the stock is attractively priced at 12.35x PE. It is in the process of evaluating a bid for a new tourism asset that could further fuel its earnings growth.

Agree with Rock!
I think 80 cents is still too cheap to sell.

I missed out on the early run of Straco due to my screening parameter of minimum dividend yield of 6%. Glad I took position later and am currently up 25%.

Straco is a small cap growth stock with a cash-generative business model coupled with strong pricing power. Not easy to find such competitive advantage.

The challenge is to find another attractive asset to invest in - a catalyst to move price higher.