Daily Stock Pick: DeNA Co Ltd

I'm now looking for a second technology sector representative for my new Ivy portfolio.

That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.

Today I'm reviewing a mid-cap internet content & information firm, named DeNA Co Ltd Its trading ticker symbol is DNACF.

DeNA Co Ltd is a provider of social media and internet marketing services worldwide. Its ancillary businesses include operation of e-commerce websites, travel agencies, payment collection, data sharing, insurance, and service sharing.

It operates Mobage, a platform that hosts free-to-play mobile games; and AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account.

DeNA Travel is an online travel service; Mobaoku allows users to manage auction items and bids from their mobile phones; Paygent provides payment collection services to e-commerce companies; Everystar is a mobile Website for user-generated novels; Manga Box, is a weekly manga magazine app; Showroom, is  a virtual stage where fans see artists perform live; MyAnimeList, a Website for anime fans; and Hacka Doll, a news aggregation app.

Further, the company offers Mycode, a direct-to-consumer genetic testing service; KenCoM, which supports health insurance societies to manage their members' health data; Shumee-to Club, a social networking Website; and Mirrativ, a live streaming app. Additionally, it provides Anyca, a mobile app for peer-to-peer car sharing; and Robot Shuttle, a driverless and shared transportation service.

The company was founded in 1999 and is headquartered in Tokyo, Japan.

I use three key data points to gauge the value of any dividend equity-like DeNA Co Ltd (DNACF):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

DNACF Price

DeNA's price per share closed at $17.19  yesterday.  A year ago its price was $21.10.  So price dropped $3.91 per share last year, or 18.5%.

Assuming DeNA's stock trades in the range of $15 to $22 next year,  DeNA's recent $17.19 price could move up by $0.81 and grow to $18.00 by mid-January, 2020.

DNACF Dividends

DeNA's most recent annual dividend was $0.3032 declared May 11th and paid June 25th, 2018.

That $0.30 annual payout yields 1.76% at yesterday's $17.19 closing price.

Gains For DNACF?

Adding the $0.30 annual estimated dividend to my estimated $0.81 annual price upside estimate for DeNA Co Ltd (DNACF)  shows a $1.11 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Just under $1,000.00 invested today at the $17.19 recent price would buy us 58 DNACF shares.

A $10 broker fee paid half at purchase and half at sale costs $0.17 per share.

Subtract that $0.17 brokerage cost from the estimated $1.11 gross annual gain leaves a net gain of $0.94 X 58 shares

= $54.52

for about 5.5% net gain on a $997.02 investment.

Therefore, DeNA Co Ltd whose trading ticker symbol is DNACF, now shows a possible 5.5% net gain including a 1.76% dividend yield.

No brokers cover this stock:

That means there's nobody to argue with my estimates (except the company).

Therefore, you can look at DeNA Co Ltd (DNACF) and see it has made money, is making money, and could rise to net a 5.5% annual gain including that 1.76% estimated dividend yield. It could be more, it could be less.    

The above speculation is based on past year performance. The actual results remain to be seen to determine if DeNA Co Ltd (DNACF) is worth your time and money.

 

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James Hunter 5 years ago Member's comment

Not too shabby.