I first talked about 800 Super in my blog of 29 May 2016 when its price
was at 67 cents, but I started accumulating it when the price was at 48 cents. The
stock closed on 10 Feb 2017, Friday, at $1.09.
I will not sell it so soon even though my profit is more than 100% now.
The negative point of this gem is its liquidity or the lack of it --- trading volume is low or I would have bought more at its trough. But the negative point can also be its strength when the gem is uncovered as the price can go through the roof.
800 Super just announced its HY2017 result. The company declared a special half-year dividend of 1 cent this time and this shows that the management is willing to share its spoils with shareholders and is sharing more this time.
With the current price at $1.09, the forward p/e has shot up to about 11.95x. But its solid 65.2% earnings growth gives a superb PEG at only 0.1833. From past records, my assumption that the growth is sustainable with its strong management team has not wavered a bit.
I will keep this defensive stock until at least half a year after their S$31 m biomass waste-to-energy plant at Tuas South starts its operation at end of Q2 as I envisage another round of big percentage of growth is on the cards.
Keep this gem for the long haul. It is very hard to find an
equivalent in Singapore.
Superphang
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