Daily Stock Analysis: Venture Corporation
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Venture Corp Ltd (VEMLF) is a Singapore-based company that provides technology services, products, and solutions. It offers solutions such as supply chain management, product refurbishment, technical support, product and process engineering, and others.
The company's two reportable segments are (1) Advanced Manufacturing and Design Solutions, and (2) Technology Products and Design Solutions. It generates a majority of its revenue from the Advanced Manufacturing and Design Solutions segment.
Geographically, the company generates a majority of its revenue from Asia excluding Singapore.
Venture Corporation Limited was incorporated in 1984 and is headquartered in Singapore.
Three key data points gauge Venture Corp Ltd or any dividend-paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
VEMLF Price
Over the past year, Venture’s share price fell about 2.2% from $12.02 to $11.75 as of Thursday’s market close.
If Venture’s stock trades in the range of $10.00 to $15.00 this next year, its recent $11.75 share price might rise to $12.35 by next year. Of course, Venture’s price could drop about the same $0.60 amount or more.
My upside estimate of $0.60, however, is just under the $0.61 average annual Venture Corp gains over the past ten years.
VEMLF Dividend
Venture’s most recent variable dividends have been paid semi-annually. Its most recent dividend, paid May 23, was $0.38. Venture’s Semi-Annual dividend payout has varied between $0.18 and that $0.38 amount in the past three years. The average of those six payouts is $0.56 which I used as my guess for the next likely annual dividend
VEMLF Returns
Adding the $0.56 anticipated annual dividend to VEMLF’s estimated $0.60 price upside reveals a $1.16 potential gross gain per share for the coming year.
At Tuesday’s $11.75 closing price, a little under $1000 would buy 85 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.12 per share.
Subtracting that maybe $0.12 brokerage cost from my estimated $1.16 gross gain per share makes a net gain amounting to $1.04 X 85 shares = $88.40 for about an 8.8% net gain.
This may be the time to pounce on Venture Corp Ltd shares. But beware, of its 2017 to 2019 dividend payouts. However, the estimated $56 dividend from $1000 invested comes in at almost 5 times above the recent single share price. The choice is yours.
The foregoing article is based on past history of Venture Corp Ltd. The only accurate measure of future performance is from active investment in the company.
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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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