Shares & Derivatives
Netlink Trust Finally Proved Itself- Free Cashflow Now Able to Sustain Dividends.
By Investment Income for Life  •  January 7, 2020
During my last review of Netlink Trust after its Q1 FY2020 results announcement (Netlink Trust- Stable Cash Cow Or Just Another Time Bomb Waiting To Explode?), I was disappointed that its free cashflow was insufficient to sustain dividends and seems to be using bank borrowings to fill the gap. But with the announcement of its Q2 FY2020 results, Netlink Trust has shown an amazing 17% increase in quarterly net profit relative to FY2019 on the back of the switch by many customers of Starhub from cable to fibre services. This is an awesome delivery of results considering the previous quarters of mediocre financial performance which lead to the prolong lackluster unit price since IPO. I have re-run the free cash flow testing using 3 scenarios:1. The first one is using Q1 FY2020 net operating cashflow and CAPEX and then annualized the results to assess yearly impact on dividend sustainability.   There is...
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.
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