Penguin International *Official* (SGX: BTM)

Shion

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Since they are debt-free and has enough reserves, do you feel they should issue higher dividends?
 

Paul Lee

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Since they are debt-free and has enough reserves, do you feel they should issue higher dividends?

No lah. This is not a dividend stock to begin with. I think you barking up the wrong tree if you harping for dividends.

Remember that Penguin is in a capital intensive business. Frankly I'm a little amazed they are debt free. A little puzzled too why they dun take on some debts - especially when cost of capital is near historic low.

I guess that is a hallmark of a conservative management. Just maintaining an even keel and not rock the 'boat' too much.
 

hakkinen

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Since they are debt-free and has enough reserves, do you feel they should issue higher dividends?
Since we know that penguin management is relatively conservative. The 1 cents payout is reasonable. Saving more for raining days is the way to go as this year could be tough run. Nevertheless with strong balance sheet, and zero debts, they will sail through this year with ease. Continue to vest and will vest more if it drops to 20 cent and below.
 

stephen hao

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FY 2014 results have been out for sometime and the price still remain stagnant trading around 0.205-0.220. 7 Million shares exchange after the day of announcement, although the price was push down, i am sure Mr market knows more than me. Surely this counter is out of the radar of many investor, it definitely lack analyst coverage on this counter to push its recognition. However bring vested in this gem for nearly a year, I would say that this is no ordinary penguin. Seeing its earning growth through out the years with a strong balance sheet to weather the "stormy" weather am quite confident that FY 2015 penguin will be a great performer but maybe not as great as 2014. I would expect its FCF to increase to 15-20m in 2015.

I am also pleased with the management for finally doubling its dividend ! Great news to long term investor like me, at the current price of 0.210 it is a good time accumulation for many and for me to average up my holdings.

It currently trading with Low PE and decent EPS, i am sure that if you dig in deeper and and understand their business, its definitely a gem. Hopefully there is wider analyst coverage on PENGUIN so that penguin will fly and not swim!
 

Shion

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Overall, investors are not so enthu in this stock at all, perhaps...

The price didn't increase but instead went down after the earnings announcement.
 
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