Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Thursday, April 7, 2011

Hap Seng Consolidated. A Relook

Hap Seng Cons. share price has dropped to low of 6.16 and is deemed attractively cheap wrt. dividend yield, (with 22 sen due in May pending announcement of ex. date, bonus shares and thereafter RI @ RM1.46 + free warrants). Ex. price after the exercise should be around RM1.96

Assume simply for comparison:
Current price RM6.18/3 = RM2.06
Typical dv 7c + 6c = 13c tax exempted (13/206 = 6.3 % dy)

Contrast:
THP dv 12.5c/217
TDM dv 13.5c/290
HSP dv 13c/290

3 comments:

CP said...

Hi

Thanks bro. Will consider her.

TEH

Remnant 613 said...

Do punt into MHC (nta 290, EPS 295). Taiping land valuable. Has decent PE, so so dividend yield.

Propose free bonus shares issue 2000 for every 3000 exist. Date TBC.
Buy levels 208 and 228 or what yr TA suggests.

They invested very early in 2005 abt 32% into Cepat bf Cepat recent price surge. So correlate the two.

Remnant 613 said...

Have taken a long position in Hap Seng Cons.
Decent earnings, PE and DY..
Like their biz model..

Share prices may slide short term but med to long term, I still opine it's positive and will perform better than FD's and unit trust...

Don't buy if you're not convicted of the potential in HSC or prep to ride the possible slump in share price (as advocated by Alex Lu).

HS boss still holds 69 to 71 %.