this bull run on luxchem is only started today. Before the market correction last week , luxchem is trading at price 1.54 which is yesterday closing price. Therefore, we can consider the bull started to run today.
Luxchem IPO price in 2008 was 1.10 . Listed during the 2008 market crash and the price crash to 60 cents. Now , have to show revenge. BULL RUN DURING MARKET CRASH !!!!!!!!!!!!!!!!!!!!! THERE IS MORE UPSIDE TO COME!!!!!!!!!!!!!! BUY !!!!!!!!!!!!!!!!!!!!!!!!
Compare to PWRoot this is still very cheap. The dividend per share for PWRoot and Luxchem are almost the same, 8 sen per share and both business are steady. EPS also very similar, with Luxchem 3 sen per share higher than PWRoot. PWRoot is 1.70 now and therefore Luxchem should be at least 1.70 too with higher EPS.
Yes, very good quarter. 3Q14 Revenue jump 30.4% YoY and Net profit surge 39.4% YoY. Next quarter could be even better as the new 'Unsaturated Polyester Resin plant in Melaka' ramps up production to 75% utilisation and should contribute further to the top and bottom lines. Bear in mind that this new plant was only just completed earlier in the year.
Hi Eftee, the effect should be neutral. Hope for higher dividend payout as it seems to me the company does not need money for capital investment. Hoping for 5 sen dividend per share or ore after the split. Projected annualized EPS base on latest quarter result is close to 9 sen per share. It should be very easy to pay 5 sen per share.
Before 1:1 bonus issue, EPS was16 sen per share and dividend is around 8 sen per year. Latest quarterly profit is around 4.5 sen and if this is sustainable, EPS could increase to 18 sen per share. It doesn't seem that this company requires a lot of capital expenses so I think it has the potential to increase the dividend pay out. That's why I think a slight increase of dividend per share is not impossible. I believe that the management is fair and sincere to the minor shareholders. They have been trying to keep the price at a level to reveal the share's intrinsic value but not to a level distorting the value. This create opportunity for original minor shareholders to quit at a fair price if they need money and at the same time not risking new investors who buy the shares from them. Otherwise, I don't see what benefit they actually get through the bonus issue since they are not selling any. I think this show that the management is caring for minor shareholders.
If I'm a business owner, and not ready to get any benefit from bonus issue, I'd think of the bad sides of it. For example, shareholders may ask for more dividend after the bonus issue. If I'm not ready to do it, then I might be creating some trouble for myself for nothing. If the purpose is to get the price to reveal something that is undervalued, to make it fair to the minor shareholders, this cannot be done by giving some "support". This is how I come to a conclusion that there might be a slight increase of dividend from 8 sen per share to 10 sen per share before bonus issue or from 4 sen per share to 5 sen per share after the bonus issue.
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....
yfchong
5,883 posts
Posted by yfchong > 2014-10-21 11:35 | Report Abuse
nicely achieve.