Some friends of mine was asking: Does it still worth to invest?
My answer is YES. It's still have room of growth as its current price. The following are the reason:
- Pantech P/E is relatively low compare to other O&G industry
- There are a lot of upcoming major O&G projects that going to be announced in coming years. Pantech will get benefits from that.
- ROE is increasing for the stock in this recent year. Foresee the growth will be sustained.
- The company management keen seeking outside opportunity. UK-based Nautic Steels is a succeed acquiring story for the company. They are trying to explore North America market as well.
- Good dividend yield. With the current price, it still have 4-5% dividend yield a year. Foresee the coming year the distribution of dividend will grow if the business is good.
- Bullish in Malaysia market is on-going now.
With those reason, I couldn't find any reasons for me not to invest in Pantech. To be more aggresive, I focus on its warrant share with (pantech-wa) with the maturity year at year 2020. Currently the price stay at 0.4x.
Last but not least, my personal target price for Pantech is RM2 per share and pantech-wa is RM1.45 per share. Target date to achieve is year 2015.
Enjoy the bullish run... Investment is amazing.
