Buy @ $0.225
Q3 results is expected by 15-Mar (last year) and I have decided to buy back some during their Blackout Period. No, I'm not expecting good results but at current prices, I'm betting it'd factored in bad results, similar to Q2 drop in EPS of ~-0.2ct. My thoughts about the EPS,
- Most Likely = aro' 1.2ct
- Hopeful = 1.2 to 1.4ct (similar to past 4 years)
- Dream >1.4ct
- Nightmare <1 ct (Not impossible as they may do a write-down for 8Raja since they'd been unable to sell…)
As I'd sold down my holdings quite substantially previously, I'll likely be buying more on any price weaknesses. At $0.23 close,
- PE (latest 4Qs) = 9.43 (can go above 10 if Q3 EPS < 1.2ct)
- Yield = 4.35%
- Cash = 12.4ct / share or Net Cash (minus Debts) = 7.1ct / share
Property continues to be a drag and is not expected to provide any lift to EPS soon… My estimate on a potential write-down for 8Raja,
- As of Q2, 'Properties Held for Sale' = $53,587,000
- Assuming a 10% Write-Down
- => $5,358,700 or 0.66ct / share
- => Reduction of 0.66ct to EPS
- => Previous Years' Q3 EPS = 1.2ct to 1.4ct becomes 0.54ct to 0.74ct
So, a potential shock for Q3 results… but, a non-cash item.. 😀
Still, mkt will whack down share price if that happens…