HeiTech Padu Bhd has secured a contract from the Government for the maintenance and services of computer systems for the data centre at the Immigration Department valued at RM19mil. According to a filing with Bursa Malaysia, the contract is for a period of two years from July 2013 to June 2015, and will only contribute positively to the future earnings of the group. (Source: The Star)
An over sold counter. Drop from RM1.30++, lowest for 5 years now RM0.705. A company that provided application system to several Government departments such as National Registration Department (JPN) and Immigration Department of Malaysia. The problems are, some big project (Direct Negotiotion) with Government and private company that need HTP system, HTP will establish(open up) a new proxy company to deal with that private company. Don't know the profit drop into whose pocket?
HeiTech Padu Berhad is a low quality company with a positive outlook. HeiTech Padu Berhad has weak business growth and is run by passable management. The trend in HeiTech Padu Berhad fair value exchange rate against its closest rated-competitor, Theta Edge Berhad, has been appreciating over the past 2 weeks. When compared to its closest peer, GHL Systems Berhad, HeiTech Padu Berhad shows greater overvaluation and is equally likely to underperform the market.
HeiTech Padu Berhad's registered activity is in the IT Services & Consulting industry. The company is a mid-cap stock currently trading at a multiple of 27.05 times earnings.
I once owned 300,000 HTPadu Shares. I think it gave out 14 cts dividend twice. Since then there weren't many Govt contracts.But PNB is a substantial shareholder. As such HT Padu will continue to receive Govt Related Projects.
The FOCUS Magazine (Always with unsubstantiated sensational news) said the HT Padu might be privatised at RM1.10 to RM1.30. Dato Hilmey has denied this as rumour.
There was a strong buying up of HT Padu at up to RM1.40 years back by ASB/PNB . At that time I thought PNB might take HT Padu private. But it didn't happen.
Price has retraced since then. At below 70 cents I called for a Strong Buy because Dato Hilmey bought back huge chunks of HT Padu above 70 cents years back. It is always safe to buy at Prices BELOW what Directors and Insiders are buying.
As I have said before I think OPCOM is now the Only Remaining IT Related Share That Has Not Moved Yet.
MyEG has secured E-GST project from Govt. Expect more Internet Connection in WHOLE OF WEST MALAYSIA, SABAH & SARWAWK. OPCOM is the No.1 Fiber Optic Provider in Malaysia.
Buy OPCOM before the Market discover it like HT Padu & MyEG
"Upon consultation with our Chairman Y.Bhg. Dato' Mohd Hilmey Mohd Taib, he informed that he has informally explored the possibilities of a privatization exercise about 4 months ago, which was premature and non –conclusive. The Chairman confirmed that there is no formal arrangement in relation to the aforesaid possibilities has been made at this juncture. The Chairman has also never held any discussion with Agathis Captial (Limited Partner"
I bought HTPadu from Dec06 to Jul07 & received good dividends from FY06 to FY10. However, earnings started dropping since FY11 & dividends stop from FY11. With the dividends received, my net cost in HTPadu reduced to RM0.45 from RM0.95.
Since the Chairman didn't deny the possibility of future privatisation, speculation may still be going on.
I'm now watching closely for a good exit price. :-)
With the good dividends I received from HTPadu in FY06 to FY10, my net cost was reduced from RM0.95 to RM0.45.
Imagine if the company didn’t give out the dividends then my net cost will stuck at RM0.95. The dividends not paid will turn into retained profit & increase the net asset of the company.
However, when the earnings started dropping, the price may drop the same amount since net asset of a company is something that you can see but you cannot touch. Then I will suffer losses. In Bursa, there are many stocks trading at a huge discount to their net asset per share.
I always think of dividends as automatic profit taking (without the hassle of constant trading). It will reduced the net cost of owning a stock & if something bad happened you’ll not suffer much. For my Bjtoto shares, the net cost is already negative years ago, hence no matter how Bjtoto drop, I won’t suffer any losses.
Not false hope. Tomorrow is last call for this counter. TP is 0.83. Friday will force selling. You can either stay diam diam & see. Or just do it. TP is very subjective. No 100%.
No need to thank me if u earn money & don't blame me if u lose. Because it all up to your decision. Just sharing. If trust u can buy it diam diam & take profit or lose. That's all. Again, tomorrow is the last wave for this counter, TP is 0.83
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....
Law Ge
5 posts
Posted by Law Ge > 2013-03-03 15:21 | Report Abuse
Dividend seems to dry up.No declaration in 2012.