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CorporateSTOCK: WELLCAL (7231)
Blog 08 Jun 2015, 2:47:59 AM
That is not "fundamental analysis", you are just making a bunch of assumptions. In the financial industry we call that "rubbish in, rubbish out". You are making a guess on what the company will be earning 3 to 5 years from now, And from that you try to calculate the correct share price from discounted cash flow etc. All guesswork and imaginary figures. On top of that you cut and pasted some commentary from the CIMB report. That is not deep analysis.

Look at the facts instead. The dividend is rising every year and is almost 5% now. ROE is above 40% and has risen every year for the last five years. Return on Assets is close to 25% and has risen over the last five years. How many other companies onb Bursa come close to that?

Wellcall can easily afford to carry-on its generous dividend policy. It has strong cash reserves and can afford any borrowing for higher dividends and capex.

Earnings will also remain above forecast because of the weaker ringgit. Its biggest market is the USA, and the dollar will keep rising vs ringgit. This share is rock solid share and still undervalued. RM 1.88 is cheap. Dividend yield is almost 5%. Buy on Monday and can pick-up the dividend as well.
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