Sunday, August 12, 2012

Datapulse

You would recollect my previous post on Datapulse.
 
Here is a link to the company page.

http://www.datapulse.com.sg

Last year, they paid a dividend of 1.8 cents for the year.

Here is a look at the share price performance last year


The trading idea is this.

Datapulse is currently trading at 19 cents a share.

They are not likely to post a loss for the 2H of 2012 (From their 9 month report).

I expect Datapulse to declare a dividend of 1.8 cents for the year.

Once the results is announced, or leading up to the announcement, the share price will appreciate to around 22.5 cents.

You can buy in at 19 cents and get out around 22.5 cents to generate a return of 18% for a three month holding period.

Now, what is the likely risk, the risk is that they may not declare a dividend, in which case the price will collapse to around 10-12 cents.

Since it is an illiquid share, there is likely to be trading costs of around 5-6%, so, all in you can still gain around 10-12%.

Full Disclosure : I am neither long nor short Datapulse

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