Sep 7, 2013

Cory Diary : SIA Engineering

I am spending time to take notes this weekend due to recent "accidental venture" .... sigh ...( Stress )

So here i am today on my own on the need to conduct deeper investigation. Do take it with a pinch of salt on all the data shown here as i will likely be bias and from an untrained financial background.

This company has strong barrier, stable business, growing and dividends with negligible debt.

"The cash balance of the Group as at 30 June 2013 was $628.7 million, an increase of $105.8 million or 20.2% compared to 31 March 2013."

Low earning yield due to reasonable anticipated growth.
Staff Costs from $123.4 M to $128.7 M = $5.3 M or 4.3% increase

1. Last traded stock price = $4.66
2. The last two half years dividends total = 0.15 + 0.07 = $0.22
3. Last report quarter earning per share = $0.0616
4. Profit Margin above 20% - Historical
5. EPS around 6% - Historial
6. Annualized growth around 6% - Historical

Annualized returns of Dividend Yield based on item 2 = 0.22/4.66 = 4.72%
Annualized returns of Earning Yield based on last quarter earning  = 5.28%

If we consider capital growth element plus dividends, this is a 10% stock with a great business.

There seems to be a nice support around $4.64 from current dip. The next lower will be around $4.48 in my personal opinion. Normally i will get some batches first which account for my high trade frequency, and then go deeper .... sigh ha ha

Take note is just a blog diary. Thanks for reading.


Cory
7th Sept'13 (Vested)



1 comment:

  1. Today $4.89 seems to fibo 61.8%. Is a nice time to do some adjustment if you have too much or too little I feel ! :)

    ReplyDelete