Dear Investors & Traders, PLEASE READ AS WE TYPE TILL COMPLETION
Last Friday Gpacket share price suddenly gone Limit Up to a new high of Rm1.27 (maximun upside 30%)
That piqued my interest in Redtone
From experience I know if one Stock in an industry goes up the best course of action is to find similar identical stocks in the same industry which have not moved as yet. Like the Dot.Com bull run in year 2,000 AD at the turn of the millenium when US Tech stocks went up in a bull run. Malaysia Tech stocks like MPI also followed. MPI went up from Rm5.00 to Rm50,000 for a 1,000% increase
Early April Calvin saw Glove Stocks started to move so he bought Comfort Glove at 88.5 sen & Supermax at Rm1.73. THen both moved up. Knowing that Top Tier One Gloves have moved and then Tier 2 like Comfort glove also moved Calvin started to search for Tier 3 laggards like Adventa,
See, Aventa buy call at 57 sen jumped to over Rm1.30 in a very pent up bull charge. Others like Es_Ceramic, Luxchem, Mtag, Prolexus also followed moving up in the health care bull run
So Greenpacket Limit Up is a signal that NFCP stocks might now come into focus
See how similar Gpacket & Redtone businesses below
Green Packet Bhd is engaged in the business of investment holding, research and development, marketing and distribution of wireless networking and telecommunication products, networking solutions, communication services, and other high technology products and services. The business of the company operates in various segments that include Solution, Broadband Services, Communication Services, and Elimination. The Solution and Broadband service generate maximum revenue for the company. Geographically the company exports its services to the United States of America, Taiwan, Hong Kong, Bahrain, and Singapore.
REDtone International Bhd is a digital infrastructure and services provider that offers services under three categories that are Telecommunications Services which offers data and voice services to government, enterprises, and small and medium enterprises (SMEs), Managed Telecommunications Network Services (MTNS) which includes building, maintaining and operating large scale WiFi hotspots, radio access network (RAN) infrastructure and fibre optic infrastructure, and Industry Digital Services (IDS) which includes data centre services, internet of things (IoT) services, cloud services and applications, and healthcare solutions to enterprises, government and the healthcare industry. The company’s Telecom services generate maximum revenue for the company.
If you read more carefully you will notice that Redtone Business is more comprehensive & solid.
Now last quarter Redtone was positive while Gpacket was negative. Redtone also pay a dividend while Gpacket was nil. GreenPacket has high borrowings while Redtone has a Net Cash of over Rm40 Millions
From here we see Redtone is the laggard to buy since Gpacket already run up so high and so fast.
We don't chase high and hope to sell higher. We take the defensive course of buy low. And then wait for it to rise.
Now let's dig deeper into Redtone's prospects
1st Can expect Redtone to increase its dividend
Redtone already gave 1 sen dividend last year. Could REDtone give out more dividend in future?
Yes, very possible.
The answer is this.
REDtone has been giving out yearly loan interest to REDtone loan stock without fail for the last 10 years at 2.75% interest.
|KLSE: REDTONE-LA (0032LA)||REDTONE INTL - ICULS 2010/2020|
Now if REDtone increase its dvidend from 1 sen
to 2 sen?
Then at 47 sen its yield will be 4.2%
If 2.5 sen? Then its yield will be 5.3%
If 3 sen then 6.3%
With little need for Capex an IT company like REDtone could easily scale up its dividend payout
2) REDtone Already Secured Job in Sri Lanka