ShareJunction - Stock Forum Messages

TeleChoice Intl Last:0.09 -

Telechoice

Monday: 12 APRIL 2010

11!39:23 S$0.240 120,000

BOUGHT frOm SELLER

With all things being the same and the price going at 0.36, I will be the first to sell it to you. :p

RIGHT PLACE

RIGHT TIME

RIGHT PRICE

TELECHOICE

TP S$0.360

TeleChoice

Symbol:
T41

Currency:
Singapore Dollar

Last:

0.24

+ 0.0050

Vol (K): 58.0

Corporate Action - Cum Dividend

Trading
Updated Time	08-Apr 16:59
Open	0.235	High	0.24	Low	0.235
Prev Close	0.235	Buy	-	Sell	-
Volume(K)	58.0	Buy Vol(K)	-	Sell Vol(K)	-
52 Wk High	0.235	52 Wk Low	0.2	52 Wk Avg Vol	376.395
All Time High	0.36	All Time Low	0.165
Comments	Near 52 wk high

*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	31 Mar 2010	Financial Year	31 Dec 2008
Current Year Profit (After Tax) $'000,000	14.187	Previous Year Profit (After Tax) $'000,000	14.179
Net Asset Per Share	0.14	Turnover $'000,000	2.51
Current Year EPS (After Interest and Tax)	0.03	Previous Year EPS (After Interest and Tax)	0.03
PE Ratio (After Tax)	7.7	Times Covered	1.6
Price (at update time)	0.23	Dividend Yield	0.09

*Technical Analysis Information is updated Daily

Technicals
RSI	58.37	Williams %R	-50.0
Comments (RSI)	No Info	Comments (W%R)	No Info

iNtrinsic VALUE S$0.281

KiLrOy ( Date: 18-Mar-2010 22:17) Posted:

one has to 'zoom' out to look at the big picture of this counter as to where its going.

Looking at the trend, the price action went up and consolidate for a period and now its trending up again so a UP - STAY - UP = UP. Smiley

its customer STAR HUB is very FAST

do note the business risk everyone. it is tied very closely with ST telemedia telco.

telco might still do ok in deflation scenario. but if capex down they will defo affected.

35% Guaranteed Returns Over next 5 years is Very Very NICE for CPF funds.

pharoah88 ( Date: 29-Mar-2010 18:40) Posted:

I sEE what yOu mEan.

Thanks

http://www.investmentmoats.com/money-management/dividend-investing/yield-watch-telechoice-revisited-dividend-payout-sustainable/

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

humblepie ( Date: 27-Mar-2010 15:30) Posted:

here is my take on the sustainability of its dividend

[Analysis here >>]