I bought on the assumptions that:
the fundamentals look OK;
The P/E is attractive;
The downtrend is about to break;
The wedgie (or whatever the really technical people call it) is about to break to the upside;
But mostly I needed a 'fix' after a few weeks of cold turkey.
Best Wishes
Paper Tiger
Excellent news. A week back I was starting to wonder if my buying into this stock was a mistake as the price was not moving while the fundamentals seemed compelling. Now the price has risen and the smart money (PT) has joined the register.
Whether this proves to be smart money or dumb money (It was actually some Ringgit I found down the back of the sofa) remains to be seen.
But I look at it this way (assuming profit for FY14 & FY15 and 70% dividend payout, with full imputations or supplementary [for me ], as per the prospectus), being conservative on valuations and with future growth of 6%:
Dividends to be paid in FY15: 5c (final) + 4c (interim)
[6.1% net yield @ $1.48, 5.8% @ $1.56]
Dividends to be paid in FY16: 6.5c (final) + 5c (interim)
[7.8% net yield @ $1.48, 7.0% @ $1.65].
OK, the future is a little uncertain but I consider it probable that the market at some point will catch up with these dividend yields and raise the price above my valuations, and if it does not, well the the yields are good.
Best Wishes
Paper Tiger
FY refers to Scales Financial Year (and Malaysian Tax year) of 1-Jan to 31-Dec.
DYOR as usual.
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