Vicom, the name that is ubiquitous with all car owners in Singapore. Recently, its share price has been falling due to worries of the lopsided ageing of the private cars and thus, the massive de-registration of the vehicles at the end of their 10 year lifespan. Why then did I decide to take a small position in Vicom today? Excellent Balance Sheet

1. Massive Cash holdings that is increasing year on year 2. Constant free cash flow generated (refer to point 1) 3. ZERO debt 4. Constant increase in dividend payouts

Market Leader Like SATS , who is the market leader in its own industry, Vicom commands more than 70% of the Vehicular testing in Singapore. Massive De-registration? Owners may choose to extend their COE instead of bidding for a new COE when the prices are sky high. If that happens, these vehicles would require more frequent testings and this ......