Current Analysis: Exco Technologies
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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
Exco Technologies Ltd (EXCOF) is a designer, developer, and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries.
The company reports in two business segments namely, (1) the Casting and Extrusion segment and (2) the Automotive Solutions segment. It generates maximum revenue from the Automotive Solutions segment which produces automotive interior components and assemblies for seating, cargo storage, and restraint for sale to automotive manufacturers and Tier 1 suppliers.
Geographically, the company derives a majority of its revenue from the United States and also has its presence in Canada, Europe, Asia and other regions.
Exco Technologies Limited was founded in 1952 and is based in Markham, Canada.
Three key data points gauge
Exco Technologies 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.
EXCOF Price
Over the past year, Exco Technologies' share price fell about 4.29% from $5.83 to $5.58 as of Thursday’s market close.
If Exco trades in the range of $5 to $7 this next year, its recent $5.58 share price might rise to $5.90 by next year. Of course, Exco’s price could drop about the same $0.32 estimated amount, or more.
My annual upside estimate of $0.32 however, is in line with the average annual price increase for Exco over the past 15 years.
EXCOF Dividend
Exco Technologies Ltd has paid variable quarterly dividends since June, 2004. Exco’s most recent Q dividend of $0.08 was declared January 31st to shareholders of record March 13th. The payout is to be made March 28th.
A forward-looking $0.31 annual dividend yields 5.6% at Wednesday’s $5.58 share price.
EXCOF Returns
To put it all together, add Exco’s estimated annual dividend of $0.31 to the estimated price upside of $0.32 to find a $0.63 gross gain.
At Thursday’s $5.58 share price, a little under $1000 would buy 179 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us $0.055 per share.
Subtracting that likely $0.055 brokerage cost from the $0.63 gross gain produces a net gain of $0.575 X 179 shares = $102.93 for a 10.25% estimated net gain.
You might choose to pounce on Exco Technologies Ltd. It is a 72 year old dividend paying Canadian-based automotive components company. Furthermore, the estimated $56.00 of annual dividend income from $1k invested is over 10 times greater than Exco’s recent $5.56 single share price.
The exact track of Exco Technologies Ltd's ongoing future price and dividend will be determined by market action.
Remember the true value of any stock is best realized through personal ownership of shares.
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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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