Towards Financial Freedom
The Day Ahead... - NeraTel
Scoop of the Day: The mandatory cash offer for NeraTel (BUY, TPS$0.66), a leading Telco equipments and retail payment system provider, will close at 5.30 p.m. on 8 January 2013 (next Tuesday). We believe that the privatisation will most likely fail in view of the poor valuation (7.0x T12M P/E vs. its peer's average of 11.8x) with the group's management as well as independent financial advisor (IFA) saying no to the offer. With a much stronger parent - Northstar on board, NeraTel is in a favorable position to capitalise on the strong Telco spendings in the MENA region as well as robust demand for retail payment system in ASEAN market. We believe that the stock is grossly undervalued with the upcoming catalyst possibly being a record FY12 performance along with a hefty 4.0S¢ dividends, translating to an attractive yield of 8%. The counter remains as the top pick for our Singapore Tech coverage with 1) long and established track record, 2) zero borrowings with solid cash hoard, 3) profit growth of 56.3% and 4) an impressive ROE of more than 30%. (Edison Chen)
Source: OSK
Source: OSK
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
