After its IPO at price of 30c, BWI was traded under water for almost one year. Until recently it went up like a rocket to 62c. If counting in bonus shares, the price actually reached 74c. What can we learn from it?
(1) Of course, firstly, the good financial results back it. It released 100% up net profit for 1H 2005 on July 28. But its price started to rise as early as June 15. So is there anything that hints us it will release good result?
(2) The board of directors is generous. Last year when issuing interim result, they didn't recommend dividend. But later they declared 0.625c interim dividend. Perhaps they wanted to boost share price by distribution. Good yield shares are always welcomed by investors.
(3) Another import event is that strategic investors, Dr Derek Goh and Mr. Goh Tiong Yong, had entered the game. Dr Tan & Dr. Hoan described them as friends.
(4) Last but not least, I think its share had peaked. I concluded this by: (1) Goh Bak Heng is selling his shares; (2) The Price Earning ratio is over 10 based on 62c; (3) The return is not attracting too, standing at 1c interim plus 2c final ( i guess ), that is 5% only.
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