I believe you are a working individual, this is the type of shares you should hold. Check the annual reports, 5 year charts, perhaps it will help you to understand more,.
Fb2, i notice the substantial shareholder consist one fund called Mondrian markets small cap fund(what fund is this,you have any idea?) and lots of it foreign funds but no local big fund like EPF,PNB,etc
Yes Ironbull, Mondrian I think US equity fund but not so active lately, not buying or selling actually. Local funds no support also, but this company business will do well I think. Oversea business, diversified regionally, and products. Unlike construction business, this one can keep longer term, try check out the 5 yr charts and annual reports.
About Future After completing the new plan in mid of 2014, there will be a 70% jump in its current production volume. So, i am expecting at least 50% improvement in the revenue & profit after the new plan commence. Below are the simple calculation to project its future prospect based on the latest quarter result (Q3 of 2013). **Some post i sought out in the net
WELLCAL is a very good fundamental company, it has a lot other plus points as below: 1) Dividend Policy 50% 2) Product for niche market (O&G, F&B, weld & mining and chemical) 3) Recurring business as the industrial hose average life span is around 6-12 months)
Back to 2011, the reason i bought WELLCAL is because of its business has been growing up well when i first noticed it in 2011. The revenue was growing strongly, but profit didn't grow at the same pace. As a serious investor, we should always try to find out the reason if there is something we are not sure. And, you will be rewarded at the end. I found out that the reason behind of it, it was because the rubber price has been going up drastically in 2011 and it caused the margin profit of WELLCAL dropped since the rubber is the main raw material of WELLCAL. The good news is, the rubber price was dropping when i decided to buy it. So, i am quite sure that the profit will be improved in near future if the revenue can be maintained.
My Investment Result
I gained more than 100% from initial capital, this is not included the dividend that i received over past few years. The most wonderful fact is that i'm receiving more than 13% dividend yield from WELLCAL this year. This is the beauty for being a real investor.
About Future After completing the new plan in mid of 2014, there will be a 70% jump in its current production volume. So, i am expecting at least 50% improvement in the revenue & profit after the new plan commence. Below are the simple calculation to project its future prospect based on the latest quarter result (Q3 of 2013).
Current Quarterly Net Profit = RM6.8mil New Quarterly Net Profit = RM6.8mil x 1.5 (50% jump in revenue & profit) = RM10.2mil New Annually Net Profit = RM10.2 x 4 = RM40.8mil.
This is also equal to earning per share of RM0.30. With its dividend payout for past few years, there is a very good chance to get 25-30 cents dividend after commencing the new plan.
Ironbull, thumbs up, very good article. Also I read that this new factory will produce mandrel hose which have a higher profit margin. A lot of people still not aware yet that they can buy cheap now.
yah,thumbs up to you too, you asked me to search for their reports...and this is what i found...hahaha...hopefully it's help all who wants to invest in this company
"This is also equal to earning per share of RM0.30. With its dividend payout for past few years, there is a very good chance to get 25-30 cents dividend after commencing the new plan."
current dividend just 2cent.. 10 times of current dividend?? or i misunderstand something..?
HI Guys, Good to see so much interest in Wellcall now.
I agree with aunloke. The forward EPS of Wellcall in FY2016? will at best in the region of 10-15 sens. I think Ironbull divide the New Annual Profit by the no of shares before Ex-split.
Good to note that Vol picked up today
Hi FB2, Back to office from Tomypak AGM, trying to create a new gmail account now
Hi DC,, good morning,, glad to see you here today. Yes, looking at number of participants here, it has increased. and happy to see their investment bear fruits.. maybe cross 1.50 first. No worries... I wait for your gmail. did sent a email to you Hotmail.
Understand from sources closed to the company, the award of construction contract will be this week and work to commence mid June. In the meantime, the company is running near maximum capacity.
I'm here patiently awaiting good news from the 3rd factory.There is a ready market for the mandrel hose. The 3rd factory will be 100% focus in producing high profit margin mandrel(with specific specs). In the mean time 8 cents div a year is enough to quench my thirst =)
~Trust in a business and ride the wave but always be vigilant~
Don't understand, suppose ESOS is for employees but don't know why suddenly cancel the scheme and eventually acquired by director. Any experts can help to explain???
I'm not expert, just overall of his market share capital increase but the beneficial person that get ultra cheap price is only for his director not you or me nor his employee.
estimate new factory can be start operate around june 2015
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Posted by Firebird2 > 2014-05-22 12:56 | Report Abuse
I believe you are a working individual, this is the type of shares you should hold. Check the annual reports, 5 year charts, perhaps it will help you to understand more,.