Segmental profits increased 33.1%
That was all that's announced via SGX. But it's good enough to let me know that their business is still stable (contracted) and their profits are still surging quarter by the quarter.
Since this stock is out of the radar for most investors, it's share price hasn't reacted according to their results.
| May-15 | Oct-15 | |
| Share price | $0.25 | $0.31 |
| Share price % change | 24% | |
| Profits % change | 33% |
This may be a smelly business, but I love it for its value it holds. Although Colex doesn't have a high dividend yield, which is contrary to what my other portfolio is, I'd find it hard to pass this opportunity to grab this value stock.
What do you think?
Even though this company is in a defensive sector, its survival depends on winning contracts. There is no guarantee that the contracts will be awarded to them. Competitors include 800Super and SembCorp. Revenue growth is very much dependent on the quotation of the contracts.
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