GTronic

Posted by bsngpg > 2013-08-04 16:12 | Report Abuse

Hi Faberlicious : Do not feel sad as at that time, there was no catalyst for the company business. If I were you, I would switch to others too. The company was only doing good lately after the return on its R&D initiative kicking in. When Cold Eye recommended this stock in Jan 2013 at RM1.70 (excluding div), I were convinced but has no bullet to buy. I recommended a good friend to buy during CNY gathering. In Mar 13, when I have some free fund, I bought some. After PIE’s dividend ex on 27 Mar13, I switched all my holding on PIE into GTronic. I made a very handsome return and I regretted that I did not more fund to buy. My cost was at RM1.84. I will not sell no matter up or down till 2016 as I buy the dream of its exe president to bring the company to RM1 bil mkt cap i.e RM3.70 per share. Thank you

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1 comment(s). Last comment by bsngpg 2013-08-04 17:02

bsngpg

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Posted by bsngpg > 2013-08-04 17:02 | Report Abuse

For sure, besides the (star 1) visible profit growth prospect, the (star 2) dividend yield is great too. My cost is 1.84, div for this yr is 0.13, yield=7%, much higher than FD. Even at the current 2.70, the yield is still 4.8%. One unprofessional and shallow thought which I have is that the owners are old thus they will continue high DPO so that they can get the money back. But as they are (star 3) good and reliable owners (to me), the high DPO is not jeopardizing the business which is attested by the (star 4) extra cash and sufficient re-investment in company. The products are highly demand by (star 5) new electronic gadget(tablets, smart phone) and I foresee the demand will keep on (star 6) growing.
On the other hand, I will not buy more at the current price as to me it is now traded at the price of Dec 2013. Why ? EPS for the 1st half is 8.86sens. I assume the best eps for the second half at 12 sens. The eps for FY13 is 21 sens. And I accord a good PE at 12, the TP should be RM2.52 at end of 2013. If the annual growing rate is 20%, TP at end of FY14 and FY15 are RM3.02 and RM3.62 respectively.
Thank you

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