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Sunday, 25 January 2015

Banking on Small Cap - Marco @ 0.17 - Hugh Cash Balance Sitting Idle

P/E :  10.64
Forward P/E : 8.7 (0.17/0.0195) - PASS
[(Q1 2014~ 0.47 + Q2 2014~ 0.37 + Q3 2014 ~ 0.62)/3] X 4 = 1.95
P/BV : 1.17 - Acceptable
Dividend per share : 0.008 (2013)
Dividend Yield : 4.7% - PASS - Estimate for 2014 around 0.008 as well
Current Ratio : 5.72 – PASS
Quick Ratio : 4.94 – PASS
Debt/Equity Ratio : 0.17 - PASS

Looking at the numbers above, Marco is a good company in good health. A quick check in their latest P&L, it is stated they have a cash balance of RM77m (2014) vs RM39m (2013). This is mainly due to the monies received from exercising the warrants. With not much of Business Expansion activities, we believe Marco might declare a good dividend for 2015. At price 0.17, we made an entry.

The old saying 'Cash is King' may holds well for Marco.

Happy Trading !

Regards,

Humble Pie  



  

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