I last wrote about the company here
Here here and here. I mentioned that the growth in share prices have yet to reflect the growth in the company's earnings. Well, a look at the table above will show that share prices seemed to be at fair value now!
Solid 1st half results again!
As the results are rather stable quarter on quarter, I've annualised their 2016 results in the table above.
Although their earnings is expected to slow down to "only" 24% growth for 2016 (from mid 30%), it is still fantastic by any measure. This is especially so in such economic environment that see so many large caps and blue chips reporting bad results.
Is this one of the safer options for investment in this current economic climate?
Gushing Free Cash Flow with potential increase in dividend again
Management has a lot of room for growth in dividends.
Low debt (almost no debt)
They entered in a finance lease arrangement for the purchase of their assets. Their total outstanding debt stands at $949k vs their cash pile of $10,394k.
Technically they can fully pay off their debt RIGHT NOW if they want.
In fact, their total liabilities is $9,389k vs the cash of $10,394k. Strong balance sheet anyone?
It's one of my STAR counter
Giving me a capital gain of 34%. Although Colex is not yielding "high" dividend, it was under appreciated back then and I love the fact that its business and balance sheet was so strong.
No longer attractive to accumulate more for now
YoY growth of 24% yet its share price soared 41%. This plays out when over a 5 year horizon though (30% CAGR of EPS vs 31% CAGR of share price)
It is fine if it continues to be unloved
It is fine if there are people who may think it's not a good business to invest in. The more Colex falls out of the radar, the better chances of its share price being unappreciated.
Remember how Raffles Medical started out, and became a monster now?
In the long run, the Market will act like a weighing machine. Share prices will eventually reflect its earnings and results.
Stay strong when people try to dissuade you. Have patience, foresight and trust!
Thanks for sharing.
ReplyDeleteYou're very welcomed
DeleteCongratulation. You did very well. It was on my radar. Unfortunately, I spread money too much and had nothing to invest in this stock.
ReplyDeleteHey there thanks a lot. Do remember to always keep sufficient war chest and deploy on those you're feeling the most confident, not the just most "hot".
DeleteWell, it is not the case for me. At that time, there were a lot of interesting investing opportunities - you will understand when you see what kind of stocks I look at.
DeleteCare to discuss further over e-mail - tonydelpiero10@hotmail.com?