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Saturday, 25 February 2012

LHT double digit increase on revenue and profit


LHT Holdings full year revenue improved by 16.5% but gross profit margin rate stays constant at 26%.

Excluding the $3.07 million investment property revaluation gain, its profit before tax is 55% higher than 2010 which brings about a healthy operating cash flow before working capital.

Current ratio is almost 4.5 times.

LHT Holdings offers value for money as investment.  With just a small investment amount of $112, an investor can get back gross gain of $5 and this means that the ROC is at 4.5%.  No bank and finance companies are able to offer such generous interest income at this low deposit amount. Anyway, this is just an illustration.  To cover brokerage costs for both buy and sell, a retail investor like myself invest a minimal of $1140 for 10 lots then a price spread of $0.006 is required to break even.  The lesser the number of shares, the bigger the price spread in order to break even. 

Its share price is really undervalued as LHT is truly a gem.

Unless its stock gets a push higher from its last done of $0.112 and with only $0.008 away from its 52 weeks high and a cautious current share market, will its share price moves higher this coming Monday?  I reckon that  LHT can easily climb above  its 52 weeks high this coming Monday but strong resistance will set in after that. 

For me, l will not chase up the stock price but am willing to wait for its share price to be lowered  before investing into it.  There is plenty of time till its ex-dividend date in mid May month.  

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