Current Report: Venture Corp. (VEMLF)
Venture Corp Ltd, bearing the ticker symbol VEMLF, has been mentioned as a candidate for my Viking portfolio. I last talked about VEMLF February 3.
Venture Corp Ltd is a Singapore-based electronic components industry company that provides technology services, products and solutions. It offers solutions such as supply chain management, product refurbishment, and 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, as I mentioned, is headquartered in Singapore. It employs more than 10,000 people and has a market cap well in excess of $3B.
Three key data points gauge Venture Corp Ltd or any dividend-paying firm. They 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
Venture’s price per share was $11.41 at Thursday’s market close. In the past year, its share price decreased about 32% from $12.65 to today’s $11.41.
If Venture’s stock trades in the range of $10.00 to $14.00 this next year, its recent $11.41 share price might get up to $12.00 by next year. Of course, Venture’s price could go down about the same $0.59 amount, or more.
My upside estimate of $0.59 is about the average of VEMLF’s average of price increases over the past ten years.
VEMLF Dividend
Venture Corp Ltd's recent $0.377 semi-annual variable dividend equates to $0.55 annually to yield 4.86% at Thursday’s closing price.
VEMLF Returns
Adding the $0.55 projected annual dividend to my estimated $0.59 price upside, reveals a $1.14 potential gross gain per share for the coming year.
At Thursday’s $11.41 closing price, a little over $1000 would buy 88 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.
Subtract that maybe $0.11 brokerage cost from my estimated $1.14 gross gain per share makes a net gain amount of $1.03 X 88 shares = $90.64 or a 9% net gain.
In the next year our $1K investment in shares of VEMLF could generate about $48.60 in dividends. Furthermore, a single share of Venture’s stock at Wednesday’s $11.41 closing price is over one-quarter the income estimated from $1000.00 invested.
So, by my dogcatcher ideal, this is a prime time to consider Venture Corp Ltd based on its estimated dividends for 2023. The dividend from $1k invested is 4.25 times greater than VEMLF’s single-share price. Consider yourself alerted.
This may be time to pounce on VEMLF. But beware, its price is volatile, and is nearly $8.00 below its $19.35 all-time high posted in May of 2018.
The foregoing article is based on past history of Venture Corp Ltd. The only true measure of future performance is from active investment in the company.
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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
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