Monday, September 12, 2016

The Dividend Series - Nam Lee Pressed Metal Industries Ltd

This will be the 2nd post of the Dividend Series. Read the previous write up here.

The 2nd usual suspect is... Nam Lee Pressed Metal Industries Ltd! It is another stock that is generally known to give out regularly dividend. But will it pass my Dividend Scorecard Portion of the Enhanced Triple S Scorecard?

Profile In Short


Nam Lee Pressed Metal Industries Ltd is a one-stop specialist offering complete service in the designing, manufacturing and supplying of metal products and solutions for diverse industries in building, shipping container and infrastructure etc. It is currently one of Singapore’s leading providers of fabricated metal products and cutting edge metal solutions.

The company also manufacture aluminium frames for container refrigeration units and is the only world-wide third party supplier of aluminium frames for container refrigeration units to a reputable multi-national corporation (some say Carrier..?) which is the world leader in container refrigeration.

Based on the Dividend Scorecard Portion (Based on Present Price of $0.370 and the latest 3rd Quarter 2016 financials):


It FAILS... Why?

1. Similarly to Powermatic Data System Ltd, the Value Stock Score is less than 6. This is due to the test by the Enhanced Triple S Scorecard. At its current price, the stock does not seem to be a value stock that is able to produce a score higher than 6 points. Thus, it fail this criteria.

2. Again similar to Powermatic Data System Ltd, Dividend Yield for the last 2 years, based on the current price, is less than 5% . Thus, it fail this criteria too.

So how?

To determine at which price the stock will pass as a Value Stock that is able to produce 5% of Dividend Yield for the next year. We reduce the share price to determine the price to enter if we want at least 5% of dividend yield next year.

The final result is $0.295.

A special note is Nam Lee Pressed Metal Industries Ltd passed the Enhanced Triple S Scorecard at $0.305. Thus, do note your objective prior to purchasing the stock. 

Based on the Dividend Scorecard Portion (Based on Present Price of $0.295 and the latest 3rd Quarter 2016 financials):


In Short

The conclusion will be similar to the one I had with Powermatic Data System Ltd. 

Nam Lee Pressed Metal Industries Ltd had already been "discovered" as a value stock and the recent 1 year price rise has resulted in it failing the Enhanced Triple S Scorecard as well as the Dividend Scorecard Portion.

To achieve a 5% dividend yield, you may need the share price to fall till $0.295.

For those already holding the stock, especially 1 or 2 years back, I congratulate you on finding a gem. For those that are intending to enter into this stock, please wait. After all, patience is a virtue.


Current Price: $0.370 as of 12Sep 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.

Oh... and do remember, please like our Facebook page - T.U.B Investing.

7 comments:

  1. Hi, will you be able to do a write up on his competitor - Lee metal. Thanks in advance

    ReplyDelete
    Replies
    1. Hi Unknown,

      Thanks for your support. Understand this is another dividend play within the metal industries.

      Will do that in the next few post.

      Regards,
      TUB

      Delete
    2. Hi Unknown,

      Have written on Lee metal. Take a look!

      Regards,
      TUB

      Delete
  2. Nam Lee Pressed Metal is a boring stock. I held it once for its dividends. Price rarely moves.

    ReplyDelete
    Replies
    1. Hi Sweet Retirement,

      It is. But if you look from other angle, it is a stable stock that provide you with stable gains.

      If your risk profile is higher, then it is better that you go for other stocks.

      Regards,
      TUB

      Delete
  3. nam lee is currently my top performer in my portfolio, wish i had bought more in the start haha

    ReplyDelete
    Replies
    1. Hi kkelviin,

      Thanks for dropping by.

      Congrats on your gain!

      Regards,
      TUB

      Delete