Daily Stock Analysis: Globe Telecom Inc. (GTMEY)

Globe Telecom Inc. is known by the trading ticker symbol GTMEY and is a member of the communication services business sector as a mid cap telecom services enterprise. This is my second report on Globe Telecom Inc. for this Vista portfolio. I last reported on GTMEY on April 23rd. 

Globe Telecom Inc. is a telecommunications company that provides mobile, voice, and broadband services. 

gray metal tower with accessories

Image Source: Unsplash

It operates through two segments: mobile and Fixed Line & Home Broadband. Mobile involves traditional mobile services and contributes to the majority of company revenue. Within the mobile division, the majority of subscribers are considered prepaid customers. The Fixed Line and Home Broadband segment provide wireline communication services, fixed-line voice services, corporate data, and Internet for its customers. 

The company generates the vast majority of its revenue in the Philippines.

It has over 76.6 million mobile subscribers, both prepaid and postpaid, and approximately 3.8 million home broadband customers. 

The company was incorporated in 1935 and is headquartered in Taguig, the Philippines.

Three key data points gauge dividend equities or funds like Globe Telecom Inc. (GTMEY):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

GTMEY Price

Globe Telecom Inc.'s price per share was $38 as of yesterday's market close. One year ago its price was $42.52. So GTMEY's price has dropped about 10.6% in the past year. 

If Globe's stock trades in the range of $35 to $45 this next year, its recent $38.00 price might rise by $2.50 to reach $40.50 by July 15, 2022. My estimate is based on the average annual price upside over the past three years. 

GTMEY Dividends

Globe's most recent regular quarterly dividend payout of nearly $0.565 was paid May 10, 2021, and added to the previous quarterly payments, projects an $2.28 annual payout yielding 6.01% based on yesterday's $38 closing price. GTMEY has paid quarterly dividends increasing annually for 5 years.

GTMEY Returns

Adding the $2,28 annual GTMEY forward-looking dividend to my $2.50 price upside estimate shows a $4.78 potential gross gain, per share, to be reduced by any costs to trade Globe Telecom Inc shares.  

At yesterday's $38 price per share, a little under $1000 would buy 26 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.38 per share.

Subtract that maybe $0.38 brokerage cost from my estimated $4.78 gross gain per share results in a net gain of $4.40 X26 shares = $114.40 for an 11.4% net gain on a $988.00 investment.

So it is that Globe Telecom Inc. shows a possible 11.4% net gain including a 6.01% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Globe Telecom Inc. could generate $60.10 in cash dividends alone. And a single share bought at yesterday's closing price was $38.00! Thus, GTMEY's share price is about 78% of dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up Globe Telecom Inc shares because the dividend from $1k invested exceeds the single share price by about 22%. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Globe Telecom Inc. (GTMEY). Only time and money invested in this stock will determine its true worth.

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 solicitation, ...

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