OPCOM – Better than putting monies in Bank F/D

Buy OPCOM better than putting money in FD for safety. 3% interest is no use due to high inflation .

Author: calvintaneng   |   Publish date: Tue, 6 Dec 2016, 10:39 PM


Why buy Opcom better than putting monies in Fixed Deposit for 3% to 3.5% bank interest?

Answer:

Because in times of inflation putting money in bank is no longer safe due to debasement of all paper currencies.

And why OPCOM of so many other counters?

Answer:

OPCOM at 55.5 cts is selling at a very attractive price now!

It has 52 over cents NTA and in Rm35 million Cash Position. Only a small Rm5 million in borrowing.

With such sound finances OPCOM is able to give regular dividends over the years.

The bonus is this. OPCOM gives Special Tax exempt dividend from time to time. Especially after it secures a Big Project

Last time OPCOM secured a Rm359 Million project from TM

And from the accumulated profits OPCOM later gave 2 Special Dividends

1) 22.5 cts

2) 11 cts

So Rm359 mil project generated 33.5 cts dividend!

That was in the past.

What’s in Store for now?

The good news is this!

Last year OPCOM secured a combined project awards of Rm280 millions.

Calvin expects OPCOM to give a generous offer of between 20 cts to 25 cts this round.

What does that mean for lucky share holders?

Say a conservative 20 cts?

So 20 divides by 55.5 = 36%

Ha! if you take 6 cts dividend per year at 55.5 cts you will get 10.8% yearly for the next 6 years till year 2012! Total is 64.8%!!

Putting the same amount in Bank FD at 3.5% will only get you a total of 21% (43.8% less)

So buying OPCOM is a no brainer if you think of putting money in Bank FD for safety.

 

In year 2007/2008 I owned over 100 stocks. I sold all except OPCOM because OPCOM is isolated & insulated from Crisis – A Real Tsunami Sheltered Stock

Of course 10.8% per year dividend for the next 6 years is my lowest estimate. It could be much more if OPCOM secures more projects for fiber optic cables.

 

Look at what past i3 forumers wrote about OPCOM

Posted by leslieyong77 > Sep 3, 2012 07:06 PM Report Abuse 

Special div of 11cts net

Posted by kcfan > Sep 3, 2012 07:59 PM Report Abuse 

Yes ! Another special high dividend announcement.Good to hold.

Posted by kl foong > Sep 3, 2012 09:39 PM Report Abuse 

Return on equity is very impressive –
2008 – 6.94%
2009 – 8.92%
2010 – 13.18%
2011 – 23.23%
2012 – 26.4 %

 

Posted by kcfan > Sep 26, 2012 08:37 PM Report Abuse 

Opcom declares special dividend of 11 sen
Opcom Holdings Bhd, a fibre optic cables manufacturer, declared an interim special dividend of 11 sen per share, making the total payout for the year 12.5 sen, so far. “At 12.5 sen, it works out to be a 15 per cent return. So, Opcom shareholders will find this payout to be much, much better than putting their money in fixed deposits that is currently only yielding 3.5 per cent,” said executive director Eric Chhoa Kwang Hua. (Source: Business Times)

Ha! Did you notice the words of Director Chhoa Kwang Hua

He said, A 15% return from OPCOM is much, much better than putting money in fixed deposits currently only yielding 3.5%. This was posted by kcfan on sept 26 2012.

And Director Chooa Kwang Hwa has been buying and buying OPCOM shares on weakness (Calvin spotted this chun chun and now tell all i3 forum members to load up!

See