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| Baker Tech ytd price chart. Source: Bloomberg |
Last August, I discussed Baker Technology ("Baker Tech"). Back then, Baker Tech traded near its 52-week low of 24 cents per share. Today (17 Apr), the last traded price is 32.5 cents, representing a run up of 35%.
The investment thesis for Baker Tech was very simple back in Aug.
At 24 cents per share, Baker Tech was trading at 18 times P/E (based on 1.3 cents EPS excluding one-time gains), 10% discount off book value, with a sustainable dividend yield of around 7%.
The balance sheet was conservatively financed with zero long-term liabilities & zero borrowings. The balance sheet mainly comprised of cash which stood at 22 cents per share or 92% of market price!
The huge cash hoard further enhances the likelihood of a special dividend which was already a possibility given the significant gain in disposal of an ...
