Comments on: Telechoice 2007 Full Year Results: Does Dividend Yield Compensate Risks?

By: Yield Watch: Telechoice revisited. Dividend Payout Sustainable? | TheFinance.sg

Tue, 30 Mar 2010 01:02:14 +0000

[...] is a yield stock that i notice quite long ago. I recall blogging about its full year performance in 2007. Since then i have invested and divested with [...]

By: Drizzt

Drizzt — Fri, 14 Mar 2008 22:57:02 +0000

Hi SC,

Cashflow for these counters i feel, is determined by management and economic outlook.

It is very very easy for the cashflow to be hit when they hold too much inventory! Telechoice have this problem always. This also reduces the ability to pay dividends.

I’m sure you have better counters then telechoice for this. Do share with us if you can.

Cheers!

By: sc

sc — Fri, 14 Mar 2008 15:46:43 +0000

I don’t expect 2.5c dividend for every year, it’s simply unrealistic to get such high yield without taking risk. While I did not see any major issue in their cash flow. One good side of retail business is that generally their cash flow is strong. Look at local retail counter such as challenger, robinson and so on. Still optimistic on this counter unless the management is hiding something. Offloaded my $ on this counter due to market uncertainty, waiting for citibank to reach $15…

By: Drizzt

Drizzt — Sat, 08 Mar 2008 16:07:30 +0000

it is a competitive business and one that telechoice currently have some barriers due to their association to ST telemedia.

the problem is that if u are aiming it as a div counter, its stats don’t look real good for a sustainable div.

other than that it would really depend on the management, how they grow that distrubtion business.

By: sc

sc — Thu, 06 Mar 2008 01:12:23 +0000

Good point… I have been holding this for sometime and would post the question of the increasing inventory to their management Q&A. While I do think handset distribution is sustainable business, handphone usage is more fashionable and complicated these days, and become an important part of modern life. Do agree that it is a very competitive business with low margin, while there is still a successor in every business line.

Cheers,

By: TheFinance.sg » Stock Analysis

TheFinance.sg » Stock Analysis — Sun, 02 Mar 2008 04:07:16 +0000

[...] Telechoice 2007 Full Year Results: Does Dividend Yield Compensate Risks? From the report, the group expects its investment in TeleFortune (China) to begin contributing to the Group from the second quarter of FY 2008. I find no other portion of this section to be good information except this phrase: cautiously positive of the outlook. Read more… [...]