Sell @ $0.54, $0.545, $0.55, $0.555
Q415 Results were out last night,
- Q415 Revenue ($21.88Mil) Slightly Lower YoY (Q414 = $22.05Mil), Much Lower QoQ (Q315 = $30.7Mil)
- BUT, Q415 EPS = 2.32ct Much Higher Yoy (Q414 = 0.86ct), Also Higher QoQ (Q315 = 1.99ct)
- Although mgmt highlighted Better Profitabilty & Lower Expenses as the Main Reasons, the Bulk is Coming from "Changes in Inventories"
- Looks like Income Smoothing / Financial Engineering to Me!
- FY15 EPS = 7.99ct vs 6.94ct (My Projection) ; FCF = 7.29ct vs 6.93ct (My Projection)
- Div = 3ct Maintained (+1ct was Highly Possible but Not Given)
- 1H16 Guidance to be Weak but 2H16 to be Strong
Despite an excellent set of results being announced plus UMS continue to have Strong Profitability, FCF Generation and Strong Balance Sheet, I have stuck to my decision to pare down my holdings… My original target was 52.5ct but I'm adjusting it upwards during this period of cd.
At $0.555 (today's close),
- PE = 6.95
- Yield = 10.81%
- Cash = 9.07ct / Share
- Debts = ZERO
- FCF = 7.29ct / EPS = 7.99ct> Div 6ct
What's there not to like about UMS??
- 1H16 is Expected to be Weak
- Andy (CEO) has a history of selling down
- Reliant on one customer (AMAT), altho' they bought into a small Malaysian co. last year (Target Aerospace Customers)
- AMAT Contract Expiring in 2017
Lastly, I'm low on Free Cash, High on UMS and I'd like to Average Down some of my other beaten down stocks… 😀