Daily Stock Pick: Sega Sammy Holdings

Today I'm reviewing a small cap electronic gaming and multi-media firm named Sega Sammy Holdings Inc. Its ticker symbol is SGAMF. I last reported on this company last year on April 18th. Now for March 8.

Sega Sammy Holdings Inc. is a Japanese holding company of the Sega Sammy Group and operates in the amusement and entertainment business.

The firm’s segments include Pachislot and Pachinko Machines Business, which includes developing, manufacturing, and selling pachislot and pachinko machines; Entertainment Contents Business, which includes digital games, packaged games, and amusement machines; development and operation of amusement centers; production, planning, and production and sale of animated films; and development, manufacture, and sale of toys; and Resort Business, which operates and develops hotels and theme parks.

The company derives the majority of its net sales from the Entertainment Contents Business, which is followed closely by the Pachislot and Pachinko Machines Business. Sega Sammy also has overseas operations in the U.S. and Europe.

Sega Sammy Holdings Inc. was founded in 2004 and is based in Tokyo, Japan.

I use three key data points to gauge the value of any dividend equity-like Sega Sammy Holdings Inc:

(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.

SGAMF Price

Sega's price per share closed at $11.38 yesterday. A year ago its price was $15.41. Price fell $4.03 per share last year, or over 26%.

Assuming Sega's stock trades in the range of $9 to $18 this year, Sega's recent $11.38 price could rise by  $1.62 and go to $13.00 by early-March, 2020.

SGAMF Dividends

Sega's most recent Semi-Annual dividend was $0.177 declared September 25th and paid December 3rd.

That $0.177 SA dividend equates to a  $0.3665 annual payout and a yield of 3.22% at yesterday's $11.38 closing price.

Gains For SGAMF?

Adding the $0.37 annual estimated dividend to my $1.62 Sega's estimated price upside shows a $1.99 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little over $1,000.00 today at the $11.38 recent stock price would buy us 88 Sega Sammy Holdings Inc shares.

A $10 broker fee paid half at purchase and half at sale costs $0.11 per share.

Subtract that $0.11 brokerage cost from the estimated $1.99 gross annual gain leaves a net gain of $1.88 X 88 shares

= $165.44  or 16.5% net gain on a $1,001.44 investment.

Therefore, Sega Sammy Holdings Inc,  whose trading ticker symbol is SGAMF, now shows a possible net gain of 16.5% including a 3.22% dividend yield.

No brokers cover this stock:

So, no argument with my upside guesses.

Therefore, you can look at Sega Sammy Holdings Inc and see it has made money, is making money, and could throw a net gain of 16.5% including a 3.22% 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 Sega Sammy Holdings Inc is worth your time and money.

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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