UMS @ $0.575

Buy @ $0.575

A difficult decision as I'm buying back at a higher price than what I'd previously sold. My optimism is due to my just having checked that the latest Semicon Eqpt BB = 1.11 (Nov) which was released on 19-Dec-13 (>2 weeks back). Very likely, we'll see a continued BB >1 for Dec, which bodes well for UMS Q413 (Dec) results (released on 28-Feb last year) and the Div = 2ct will likely be at least maintained.

PE = 11.74 ; Yield = 8.621% @ $0.58. Yield is very attractive but biz is highly cyclical and there's no guarantee the Div payout will be maintained. PE is not too attractive for a mid-caps. The added attraction is they have zero debts and Cash = $30Mil (8.77ct / share). Main fear, I guess, is still the major shareholder cum CEO coming to sell down his stake… 😀

 

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