oil & gas plays have rallied a lot. Sembmarine, KepCorp, Ezra went up 31%, 17% and 39% respectively. However, Techinics (a Singapore company with mkt cap of $200m) which appreciated about 5% year to date and gives about 7% dividend yield seems to be a laggard. Ave analyst target price is $1.29 vs Friday’s closing price of $0.900. Current order book is at an all time high at S$141m, out of which an estimated 70% are higher margin contract engineering projects (GM:35-38%). The main bulk of the order books is likely to be recognised this year, translating to a potential record year. Analysts expect Technics to give out about 6-8 Sg cents for the whole of this year. Insiders have been buying back 2.3m shares in Dec @an estimated price of 0.845 and about 1.5m shares @$0.870 (rough estimation).
Caveat emptor. Not an inducement to buy, sell or hold. Pls view the full writeup + STI outlook here
www.ernestlim15.blogspot.com/2012/02/sti-week-ahead.html
All the best in your trading and investing.
Technics’ 51%-owned subsidiary, Norr Systems, awarded contract for turnkey construction worth S$13.1 million. As this is a subsidiary, Technics will book half of that = $6.68 m.
With a strong dividend yield of 9%, the stock is looking attractive. Unfortunately, am not vested. Will jump in if it falls to 88 cents.
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