VADS is a small-cap company with a paid-up capital of 61,178,000 shares of RM1 each as at
Going by its track record, I see fantastic growth in this counter, not only in its share price but also in its revenue and profits. It was first listed in the 2nd board in August 2002. I had bought some of the shares at 2.38. Last Friday, which is also the last trading day of 2006, the share closed at 6.40.
So far it has declared a bonus issue of 1 for 2. Taking this into account, a layout of RM2380 has appreciated to RM9600 without including the dividends, in 50 months. This is better than the world’s most successful investor, Warren Buffet’s 25% compounded growth rate.
With the advent of income tax e-filing, e-banking and other services based on self-service becoming more common, VADS is confident that its services will continue to be in great demand. Also of benefits to VADS will be the WIMAX factor. After its onset, computer demands and internet services demands are bound to increase. All these will benefit VADS in no small measures.
VADS has paid an interim dividend of 10c tax free in Sept 06. The final dividend should be about 15c.
Writer disclaims all liability for his comments or advice. He holds a sizable stake in VADS.