Tuesday, September 13, 2016

The Dividend Series - Lee Metal Group Ltd

This will be the 3rd post for the Dividend Series. This stock is requested by a reader.

Having so many steel companies in my portfolio, I have always tried my best to ignore this stock. So now, I guess its time to test Lee Metal Group Ltd against my Enhanced Triple S Scorecard with Dividend Scorecard Portion.

Profile In Short


Established since 2000, Lee Metal Group Ltd is a distributor and fabricator of steel products as well as a recognized international trader of steel and steel related products in the region. The company employs over 200 employees and has presence in Singapore, Thailand, Malaysia, Australia, and Hong Kong.

Based on the Dividend Scorecard Portion (Based on Present Price of $0.285 and the latest 2nd Quarter 2016 financials):
It PASSsss!

This meant that the stock will be able to continue to produce at least 5% of dividend yield for the next year.

One of the main reason it passes seems to be the fact that Lee Metal Group Ltd passes the Value Stock Score with flying colours.

In Short

As stated previously, I completely ignored this stock because I had too many steel related stocks in my portfolio. In addition, this stock always had high leverage over the last few years and it had always require significant additional purchases to its property, plant and equipment.

High Leverage, esp Bill Payables in 2014 and 2015

High Purchase of Property, Plant and Equipment
Nevertheless, it seems that the company had strengthened its balance sheet and debt level had decreased significantly (Only left about $44 Million as of Q2F16).

However, the only "con" I found in the latest 2nd Quarter Report of 2016 is the lack of direction from the management.

In the comments, it state that "The operating environment for Steel Merchandising remains challenging due to volatility in steel prices and foreign exchange rates. Thus, the Group will continue to reduce business volume for this segment."


This lack of information or direction is an obstacle for me to part with my limited funds as of now, and also due to the significant steel related stocks in my portfolio.

BUT I COULD BE WRONG. After all it passes my Enhanced Triple S Scorecard and the Dividend Scorecard Portion.

Current Price: $0.285 as of 13 Sep 2016.

Please do your own due diligence before you invest in this stock.

Do note the author is not vested in this stock/company.

For those who are interested to find similar quality value stock that can produce at least 5% dividend yield, you can come to 3rd Sharing Session with T.U.B! If you are interested to attend, do not hesitate to contact me directly.

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1 comment:

  1. http://sgstocksandshares.blogspot.sg/2017/03/lee-metal-at-least-6-dividends-since.html

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