He's on his way home

He's on his way home

Friday, May 9, 2014

Added a little Challenger

Added a little at SGD0.53, average purchase price now SGD0.505, total 18 lots.

It dropped quite a lot today due to a poor Q1 showing.

What's worrying to me is that its revenue seems to be growing slower than before, with narrowing margins.

The fact that I am still adding instead of selling means I remain optimistic that its earnings is still on a uptrend, although on a slower growth path.  I also remain confident in the management, based on its solid track record.

A net cash company, PE11, ROE 30% with an excellent earnings record, dividend yield around 5% and likely still room for a little more dividend growth, I decided to take advantage of the current price weakness to accumulate sufficiently to now consider it part of my 'core' portfolio.

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