July 16, 2010
Does anyone have any insights into NETCOMM LIMITED ASX code NTC as an investment?
By Planet Wealth
The stock is currently at 25c. They are running a share buy back and they paid a dividend last year. I can’t see why they are dragging the chain.
Topics: stock market | 2 Comments »
2 Responses to “Does anyone have any insights into NETCOMM LIMITED ASX code NTC as an investment?”
Comments
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July 16th, 2010 at 3:10 pm
All of the Telecoms are a bit slow, look at Telstra!
I would say that at 25c they are on a yield of 4%, and that is the first dividend since 2005. I would say they are priced about right at the moment, with very small upside for at least the next 12 months.
They also seem to be very lightly traded, so not many people know about them, that is a bit of a hindrance to the price as well.
They are obviously doing a bit of capital management at the moment, that can be a excellent and terrible thing, they will carry less spare cash, but will not have the opportunity to expand if a excellent expansion buy comes along, and would either have to go into debt or have a share buy plot.
July 16th, 2010 at 9:23 pm
Doing better than it looks, they could have paid 5c instead of 1c, but reserved some cash.
The review they talked about may be reallocation of capital from ancient to newer product lines. A capital raising would be weird as they have never wanted or needed extra cash. They are expanding into America so maybe there is something they want to buy there.
A high dollar hurts their profit. If the dollar falls a bit more, then historically they made a profit of 10% of revenue, so 10% of 60 to 100 is likely.