Lately, Wingtai has increased it's stakes in USI holdings. So SGDividends decided to see whether this company's management was mad or not and whether it is overly expanding...and run the risk of not being able to pay their loans, just like Ferrochina. Take note that Wingtai is in the property development business and retail lifestyle business, which will be hit hard in recession...
See the balance sheet above, current liabilities is way less than current assets. Good.....and WOW..it has a CASH WARCHEST which by itself can even pay off 2 times its current liabilities!
See their Cash Flow above.Its cash flow from operations is also consistently making positve flows, even after deducting from their expenditure needed to sustain the business...its still positive....Good.
And look at its Net Asset Value ( what the company is worth per share)....$2.03. And how much is a share now? $0.73. ( But then again most companies are cheap now...aren't it?).And guess what..nearly everyday from 1 Sep 2008, they have been consistently buying back their shares.....why not..they are Cash Rich!Definitely in our watchlist!!We give it 5 chilli padis!
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team