Overseas Edu    Last:0.199    -0.006

Dividend play

Cold counter but paying good dividend. Bought some at $0.765 yesterday. The stock was up 0.5 cent yesterday after touching the bottom of the up-channel on Wed. Today up 2 bids to $0.775, but no volume. Only 13 lots done so far. $0.775 is the immediate resistance. Hope it can move to $0.80+.

 

DBS covering this gem..

We are initiating coverage on Overseas Education with

Buy recommendation and target price of S$1.03, which

implies 36% potential upside. OEL, a top international

school in Singapore, presents a highly cash generative

business with operating cashflow growing at 48% CAGR

over 2010-2013. The stock also pays 4% dividend yield,

backed by strong cashflow generation. We expect fee

hikes of about 6% to 10% to support near term earnings

while the new campus, ready in 2016, to accelerate

growth.

ozone2002      ( Date: 28-May-2013 09:16) Posted:   another great company in the making that  i spotted.. gd luck dyodd Overseas Education Ltd - Defensive earnings Overseas Education?s (OEL) earnings are resilient with little credit risk, we believe, due to its upfront collection of fees. A 50% dividend policy pays investors for waiting for the next step-up in its earnings on the completion of its new campus in 2015. We initiate coverage with an Outperform and S$0.91 target price, based on DCF (WACC 7.6%). Implied 17.1x CY14 P/E is in line with the average of regional peers. Re-rating catalysts are expected from the completion of its new campus.

 

 

another great company in the making that  i spotted.. gd luck dyodd

Overseas Education Ltd - Defensive earnings

Overseas Education’s (OEL) earnings are resilient with little credit risk, we believe, due to its upfront collection of fees. A 50% dividend policy pays investors for waiting for the next step-up in its earnings on the completion of its new campus in 2015. We initiate coverage with an Outperform and S$0.91 target price, based on DCF (WACC 7.6%). Implied 17.1x CY14 P/E is in line with the average of regional peers. Re-rating catalysts are expected from the completion of its new campus.

 

This one looks like going to cheong to 70-75cents

Based on 2.75cents payout at 75cents still got yield of 3.5%

Assuming no growth, that works out pe of 15.

Not too expensive.

At entry level of 60cents means 25% capital gain plus yield means 30% at ex dividend on 7may.

However the volume may drain down which make it illiquid if u buy too much.

But worth a bet as chart looks like a breakout at 60cents.

 

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