Market does not give high PE to SAM just like to other technology stocks, and I wonder why ? Maybe the reason is it has aerospace division, apart from semiconductor division. Market mainly appreciates semiconductor division as it will ride on 5G wave ?
SAM is indeed selling at cheap valuation based on its earnings capability.
Sam generously on its dividend payment partly due to its biggest shareholder at Singapore hold almost 70% total shares. This is good to invest in for the dividend. But I am not sure why its traded volume is so little until the market forget it.
why market does not give SAM high pe? look at their margin. Dufu =19% UWC = 23.4% greatech =30% MI = 25.6% SAM = 9.3% ,
i am not saying SAM is not going to be a good pick it's still growing comfortably but look at those semicon exposure business they are so lucrative and most are still growing and expected to grow more 20%. its just an opinion of mine
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> To arrive at Target Price, I will leave it to you to decide what PER to apply. For comparison purpose, its peers Dufu, UWC, Greatec, MI Technovation etc are all trading at PER of more than 25 times.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
value88
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Posted by value88 > 2020-03-01 13:19 | Report Abuse
Market does not give high PE to SAM just like to other technology stocks, and I wonder why ?
Maybe the reason is it has aerospace division, apart from semiconductor division. Market mainly appreciates semiconductor division as it will ride on 5G wave ?
SAM is indeed selling at cheap valuation based on its earnings capability.