It is remarkable that Jaycorp been embarking on many new business lately, but the cost of investment is prudent so I am comfortable with its expansion path. Its gearing is still low at 0.28 after taking in the latest acquisition. However it remains to be seen whether all this ventures will turn out fruitful to determine any outlook change.
No debt. Net cash per share of 5.6sen. It will gives a first and final single tier dividend of 3.5 sen per ordinary share for the financial year ended 31 July 2014. At share price 69 sen per share, it's a good 5% yield.
EX-date 16/12/2014 Entitlement date 18/12/2014 Entitlement time 05:00:00 PM Entitlement subject First and Final Dividend Entitlement description First and Final Single Tier Dividend of 3.5 sen per ordinary share
****USD appreciation. **** Expect consumer sentiment to improve in the US and Europe as--- lower oil prices--- and ---key economic indicators remain positive----. This trend to carry over into many Asian economies. This bodes well for the furniture business and will likely increase demand for furniture products.
As US economy is in the process of recovery, this will benefit Jaycorp in the near term. Next quarter's result should be much better due to higher orders for better margin products, strengthening of USD against RM.
Tylertan, I think the answer to your question would be as per my Concluding Remarks as set out at the end of Part 2 :-
"Concluding Remarks
(1) Anybody who buys into Jaycorp probably likes its high dividend yield of 4.8% (3 years in a row). PE wise, the stock doesn't look undervalued (approximately 12 times).
(2) However, upon closer inspection, the group's profitability has been dragged down by the renewable energy division. Improvement of this division's performance will quickly increase the group's overall profit.
(3) The company has just acquired 51% equity interest in a sofa manufacturing company (ISSB) through subscription of new shares.
I am positive about the transaction. ISSB's size of operation is quite respectable. Instead of starting from scratch, the acquisition will allow Jaycorp to scale up its operation quickly to take advantage of business opportunities presented by the existing favorable operating environment.
By leveraging on its resources, expertise and marketing network, Jaycorp should be able to turn ISBB around pretty quickly. This new asset could be a material source of growth for the coming few quarters.
(4) Last but not least, the Ringgit is now at 3.73 vs the US dollars. The coming quarter results (to be released over next two weeks) should reflect the positive impact of the strong US dollars."
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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....
nighthood
52 posts
Posted by nighthood > 2014-04-03 11:33 | Report Abuse
min35 perhaps you can take some profit somewhere near its NTA price