AUCT, the winner.

paulren's picture
Company Articles

Post its 2Q earnings release on Aug 8th,  UNION AUCTION PUBLIC (AUCT) showed us why I was max. bullish on this selections for many months already.

Here over the past few months I very favorably mentioned to contributing members AUCT (9.40) more than any other stock, even refusing to take it off my very short "keep it list", for all the right reasons.  This post view nailing down profits on June 5th, in my started early April here posted model portfolio.  I here posted to take profits on this model just when the SET peaked at 1434, in early June.  This viewed model portfolio rocked up 32% from April 5th to June 5th 2020.  And just since then (June 5th),  AUCT rocketed up 31%, while the SET index dropped -7.7% during this same time.  You can see this model-ending again, shown at the end here.

On Thursday Aug.6th I mentioned for early birds or over-exposed holders of AUCT to nail down some profits if it rocked up more on Friday, it sure did flirting with a near 3 year intraday high of 9.90.  Late on Friday AUCT reported a stellar 2Q. profit, rising 64% over the same Q. last year while total revenues increasing 25% as compared to the same 2Q. last year.  Here just below is a snapshot from their "Management Discussion and Analysis Quarter 2 Ending 30 Jun 2020", as released on August 7th.  A fabulous report, along with the announcement of a 20% increase in its interim cash dividend of 0.18 Baht per share, to holders of record (XD) on August 21 2020.

AUCT's stock price has soared up 31% in the past couple of months -just as the SET index corrected again, as I anticipated it would. Nothing is more rewarding then a winning position in a declining market!  My view now is a hold and return to a buy-view should AUCT correct in any way.  I can see AUCT earning 0.50 Baht per share this year and so the p/e is now around 18.8 with an expected 2020 dividend yield of around 4.4%, barely demanding for a high quality growth stock leading in a desirable sector of Auctioneer of cars/motorcycles and more -with no debt. In a sustained environment of just about no interest paid on cash in bank accounts.

Best Regards,

Paul A. Renaud.