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| TeleChoice to acquire NxGen Communications |
| WRITTEN BY THE EDGE |
MONDAY, 10 OCTOBER 2011 22:14 |
Mainboard-listed TeleChoice International, a subsidiary of ST Telemedia Pte Ltd, says it has agreed to acquire 100% of the share capital of NxGen Communications.
Under the deal, TeleChoice will acquire 100% of the share capital of NxGen in two tranches, comprising an aggregate of 600,000 ordinary shares for a total consideration of up to $11.3 million. TeleChoice intends to fund the acquisition through internal resources and borrowings.
Singapore-incorporated NxGen is a regional info-comm provider of managed services and system integration solutions which specialises in networking and unified communication solutions.
Andrew Loh, President of TeleChoice says, “The acquisition of NxGen, following our recent $18 million acquisition of integrated information technology solutions provider S & I Systems Pte Ltd, is another significant step we have taken towards reinforcing our market position to becoming a leading player in the ICT segment. NxGen’s healthy portfolio of clientele in the financial services, hospitality and other large industry segments, will also benefit the Group by offering us opportunities to cross-sell and upsell our services.”
| Fundamentally: |
TeleChoice (TLC SP S$0.23 BUY TP S$0.26) - A dividend stock for these uncertain times. Mix one portion of ultra-conservative management, one portion of highly net cash balance sheet and one portion of limited (capex) needs and wants. Voila, you get a strong dividend paymaster.
We initiate TeleChoice with a BUY, dividend yield being its key attraction.
|
WHY ?
W H Y ?
W? H? Y?
it dId nOt breAk
S$0.30 ?
Ooi!! Dont disturb my high div yield milk cow leh... 
| TeleChoice |
Symbol:
T41 |
Currency:
Singapore Dollar |
| Last: |
0.26 |
 + 0.0050 |
Vol (K): 2.0 |
Corporate Action - Cum Dividend
| Trading |
| Updated Time |
06-Apr 16:57 |
| Open |
0.26 |
High |
0.26 |
Low |
0.26 |
| Prev Close |
0.255 |
Buy |
- |
Sell |
- |
| Volume(K) |
2.0 |
Buy Vol(K) |
- |
Sell Vol(K) |
- |
| 52 Wk High |
0.265 |
52 Wk Low |
0.21 |
52 Wk Avg Vol |
325.024 |
| All Time High |
0.36 |
All Time Low |
0.165 |
|
|
| Comments |
No Info |
*Reporting Currency in SGD Important: ShareJunction obtains our finance data from a third party. Check financial year before use. EPS values are recorded up to two decimal points.
| Financials |
| Date Updated |
29-Mar-2011 |
Financial Year |
31-Dec-2009 |
Current Year Profit
(After Tax) $'000,000 |
11.412 |
Previous Year Profit
(After Tax) $'000,000 |
14.187 |
| Net Asset Per Share |
0.15 |
Turnover $'000,000 |
2.66 |
Current Year EPS
(After Interest and Tax) |
0.03 |
Previous Year EPS
(After Interest and Tax) |
0.03 |
| PE Ratio (After Tax) |
8.5 |
Times Covered |
1.4 |
| Price (at update time) |
0.255 |
Dividend Yield |
0.07 |
*Technical Analysis Information is updated Daily
| Technicals |
| RSI |
47.37 |
Williams %R |
-66.67 |
| Comments (RSI) |
No Info |
Comments (W%R) |
No Info |
Intraday Chart
Friday: 12 11 2010 2:48pm
QUEUE TRACK
Friday: 12 11 2010 2:43pm
TIME & SALES
Friday: 12 11 2010 2:41pm
TRADE SUMMARY
pharoah88 ( Date: 12-Nov-2010 14:38) Posted:
Friday: 12 11 2010 2:38pm
|
|
Friday: 12 11 2010 2:38pm
Friday: 12 11 2010 11:25am
How is the dividend payout? Is it sustainable?
Generally, if you are thinking of investing in Telechoice, you are looking for a good long term yield and Telechoice provides a long term of around 7-8%.
This is mainly because the
share price ends up not appreciating and that
the dividend payout remains the same!
Take a look at this chart of Dividend payout yield vs FCF (Free Cashflow Yield). For those that seldom come across free cashflow, it is
the operating cashflow telechoice collected minus the capital expenditure needed in the year. This shows how much dividends a company like telechoice can payout, out of its normal operations.
Dividend yield have been consistent at 7-9% or so, but the free cashflow is wild. When the Red FCF is less than the Blue Dividend yield it means the profits from business are not able to fund the dividend after capex.
So how are they funding the dividend payment in those years? Judging by the balance sheets, its definitely not by long term debt.
There are 3 years where dividend payout is more than FCF. these are 2006,2007 and currently 2009.
In 2oo6, they fund that by using their 44 mil in cash holdings (see Cash from 44.6 mil to 28.9 mil)
In 2007, observe that there is a build up in current liabilities increase quite substantially (see current liabilities 46 mil to 85 mil)
The puzzling one is in 2009, because both liabilities have decrease and cash have increase. I did some digging and it would seem there is a divestment of a subsidiary perhaps thats why they have additional cash that goes to paying the dividends.
So is dividend sustainable? Hard to say. At current share price of 23.5 cents they always pay out around 9 mil for dividend. Their current cash holdings allow them to pay out for 5 years even if they are not earning money.
I feel even if they want to sustain it they can take on some long term debts, but they probably won’t do that. In these cases, if you are looking for consistent 7% for 5 years, i would say it can definitely take it.
However, what i normally look for in my investments is
a sustainable free cashflow greater than the dividend payout. A good example are the telcos in Singapore [
Analysis here >>]
In that aspect i would rather invest in Starhub then this.
Let me know what you guys think.
http://www.investmentmoats.com/money-management/dividend-investing/yield-watch-telechoice-revisited-dividend-payout-sustainable/
N E X T
DiViDEND
EX-DATE
3rd MAY 2011
Telechoice is a yield stock that i notice quite long ago. I
recall blogging about its full year performance in 2007. Since then i have invested and divested with it.
A note to all: All figures used in this analysis can be found in this spreadsheet here [
spreadsheet here >>]
What does it do?
Its a stock that ties up with its parent ST Telemedia to offer Personal Communication Services to mainly ST Telemedia’s pet Telco Starhub and other engineering and network service to it.
What it means is that should Starhub sells more handsets or engage in more capex, it bodes well for Telechoice. Personal Communication Services (PCS) is VERY low margin. Although you can see that it earns quite a fair bit of revenue, its PCS profits are quite small.
Very Strong Share Price through Economic Crisis
Click to see bigger chart
The surprising thing is that every tom dick and harry corrected big during that crisis but telechoice is still range bound. Even now during the recovery, it is range bound as well.
This is likely attributable to the demand for handsets and capex required by starhub for 3G infrastructure remaining strong.
What this means that although it came out of the economic crisis strong and relatively ok (if you are a shareholder holding the shares), a change in business condition might increase its business and profit risk
StarHub, M1 shares up on broadband optimism
Shares of StarHub and M1 propelled higher yesterday buoyed by optimism following the launch of fibre-based broadband services on Tuesday.
StarHub gained 2.03 per cent to close at $2.51 — its highest level since September 2008.
Analysts were bullish on StarHub’s prospects when Singapore’s high-speed Next Generation Nationwide Broadband Network comes into full play, citing its potential to capture the corporate market that has been dominated by SingTel.
Japan-based brokerage firm Daiwa upgraded StarHub to Outperform and raised its target price to $2.65 from $2.17.
StarHub will unveil its suite of new broadband services today.
M1 shares raced higher, up 1.84 per cent to $2.21. DBS Group
Research said M1 is the only telco to gain from the rollout of the network and expects M1’s share price to benefit as the market becomes confident in its execution.
Meanwhile, SingTel shares were unchanged at $3.08 a day after it announced a slew of high-speed broadband packages for consumers and businesses.
Analysts at Nomura noted that SingTel’s offerings were about 15 per cent to 25 per cent higher compared to existing digital subscriber line (DSL) and cable plans.
Millet Enriquez
India hikes rates to tackle inflation
MUMBAI
The Reserve Bank of India (RBI) opted for a 25-basis-point increase in its repo rate, the rate at which it lends to commercial banks, and a 50-basispoint rise for the reverse repo, the rate the RBI pays to banks for deposits. The rates now stand at 5.75 per cent and 4.50 per cent respectively. The hikes were the second increase this month and designed to tackle surging prices that had been driven by high food costs, rising wages and an expanding economy forecast to grow 8.5 per cent this fiscal year.
The Congress-led government has been under relentless attack from opposition parties for its inability to protect the poorest from surging food prices. Despite strong economic growth, India has about 450 million people struggling below the poverty line.
India’s inflation rate is now the highest among the Group of 20 economic powers. The wholesale price index, the main cost-of-living measure, stood at 10.55 per cent last month, well above the central bank’s preferred 5.5-per cent level, putting pressure on the RBI to act. “The domestic economic recovery is firmly in place, strengthening, and steadily reverting to a pre-crisis growth trajectory,” RBI governor Duvvuri Subbarao said yesterday.
But he added that “inflationary expectations are elevated and persistent”.
The RBI also said yesterday it would halve the gap between monetary policy decisions, aligning the frequency of the central bank’s meetings closer with others in the world’s biggest economies. The central bank will now release monetary policy statements every six weeks, compared with once a quarter previously. The next announcement will be on Sept 16. Angel Broking economist Vaibhav Agrawal said: “We expect more rate hikes in the coming months. We don’t expect the rate hikes to impact growth as we are still well below peak interest rate levels.”
— India yesterday raised its main interest rates for a fourth time this year in a fresh bid to tame double-digit inflation that had soured the experience of economic growth for hundreds of millions of poor citizens.
AGENCIES
Using EXCHANGE RATE
to CONTROL INFLATION
is a FLAWED CONCEPT
EXCHANGE RATE
can ONLY TRY TO CONTROL
EXTERNAL INFLATION
HIGH INTEREST RATE
is THE ONLY CONTROL
on INTERNAL INFLATION
LOW INTEREST RATE
is THE PRIMARY DRIVER
for INTERNAL INFLATION
INTERNAL INFLATION
IMPOVERISHES the CONSUMERS
ESPECIALLY THE
- FIXED DEPOSIT SAVERS
- RETIREES
- UNEMPLOYED
- LOW INCOME EARNERS
Can Consumer in SiNGAPORE pay CASH in USD ? ? ? ?
199 USD
299 USD
iPhone 4G is made in CHINA
iPhone 4G is shipped in CHINA
Singapore is much MUCH NEARER than USA
Singapore pays much MUCH lower FREIGHT RATES than USA
Singapore uses STRONG EXCHANGE RATE to eliminate EXTERNAL INFLATION
Americans' Income is HiGHER than SINGAPOREANS' Income
Americans' Salaries are HiGHER than SINGAPORE foreign labour's wages
US sell iPhones at USD 199 and USD 299
SiNAGPORE sells iPhones at
S$480 [=USD 350.00] and
S$680 [=USD 496.35]
W H Y ? ? ? ?
^cOrrectiOn^
1 USD = S$1.3700 [Round UP]
100 USD = S$137.00
199 USD = S$272.63
200 USD = S$274.00
299 USD = S$409.63
300 USD = S$411.00
SINGAPORE SALE PRICES
USD 199 >>> S$480 [>76.06%]
USD 299 >>> S$680 [>66.00%]
1 USD = S$1.3700 [Round UP]
100 USD = S$137.00
199 USD = S$272.63
200 USD = S$398.00
299 USD = S$409.63
SINGAPORE SALE PRICES
USD 199 >>> S$480
USD 299 >>> S$680
pharoah88 ( Date: 28-Jul-2010 13:53) Posted:
| 1 USD |
SGD |
1.3638 SGD |
1 USD = 1.3638 SGD as of 7/28/2010 |
| 100 USD |
SGD |
136.38 SGD |
100 USD = 136.38 SGD as of 7/28/2010 |
| 10000 USD |
SGD |
13,638.01 SGD |
10,000 USD = 13,638.01 SGD as of 7/28/2010 |
| 1000000 USD |
SGD |
1,363,800.61 SGD |
1,000,000 USD = 1,363,800.61 SGD as of 7/28/2010 |
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