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Blue chips on OTC market remain good investments

In Uncategorized on December 16, 2010 at 10:08 am

Despite most of shares on the official stock markets slumping, some on the over-the-counter market, known as OTC, remain bullish thanks to their healthy earning rate, brokers said.

Some blue chips with good earning reports remain at high prices on the OTC market, while most of shares on the official markets decline (Photo:Minh Tri)

Among winners on the OTC market are unlisted companies in retail sector, with a limited amount of issued shares.

The pillow maker Everpia Vietnam (EVE), known as Everon, made a high net profit of VND90 billion (US$4.5 million) from a revenue of VND490 billion in the first 11 months of the year. The profit is equal to 92.8 percent of 2010’s target.

Analysts expect the firm’s profit will likely to be more than VND100 billion ($5 million) thanks to a strong demand for cushions, blankets and pillows at yearend.

The Hanoi-based company will list more than 15 million shares at the starting price of VND55,000 per share on the Ho Chi Minh Stock Exchange on December 17th, according to a report on the bourse’s website.

Everon, which Korean investors hold more than 49 percent stake, is one of the biggest pillow maker in Vietnam with more than 25 percent market shares. The firm’s share price closed at VND43,330 on the OTC market with this year’s price-on-earnings ratio of 8x.

Another blue chip on the OTC market is the alcohol producer Halico, which earned around an after-tax profit of VND100 billion last year.

The Hanoi-based firm announced it would pay this year’s dividend rate of 94.33 percent, of which shareholders will get 10 percent in cash and the remainders in shares.

Halico made a net profit of VND87.45 billion ($4.4 million) from a revenue of VND594 billion in three quarters of the year. The liquor maker’s share price is VND81,430 with an earnings-per-share rate of VND4,372 for one share.

The firm’s listing plan on the Ho Chi Minh Stock Exchange this year was changed to next year as the stock market is gloomy.

The biggest fish source supplier Massan Food is exchanging hands at a high price of VND90,000 with low trading volume, brokers said.

The Noi Bai Cargo Terminal Service JSC (NCTS) remained unchanged at VND50,000 per share for many days as the firm announced it would raise the dividend rate this year to 100 percent from 75 percent.

The Hanoi-based company also raised its projected pretax profit by 37 percent to VND133.3 billion ($6.7 million) this year.

Trading on the OTC market remained quiet as investors are hesitate to sell shares with good earning reports, brokers said. “They are patiently waiting for a strong recovery on the market,” said a broker, who asked not to be named.

Source: SGGP

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