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?
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?
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
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!