Falling Knife of the Week: CSE Global

CSE Global (SGX: 544), a global technologies company, fell 28.6% so far this week, closing at $0.75 on Thursday. S$154.8 million is market capitalisation was wiped off in the span of three days.

The company provides cost effective and integrated solutions to industries in the automation, telecommunications and environmental sectors. It has international presence in areas such as the Americas, Asia Pacific and Europe. More than 95% of the revenue is generated outside Singapore’s shores.

On 27th December 2013, the company announced that its subsidiary, CSE-Hankin (Singapore) Private Limited, had subscribed to 1,000 new preference shares with a par value of US$1,000 each in its wholly-owned subsidiary, CSE-Hankin Inc. This totals up to US$1 million. The transaction was funded by internal resources of CSE Global.

The company also went ex-dividend on Monday, 30th December 2013. It paid out 28.0 Singapore cents per ordinary share as special dividend from the divestment of Servelec Group PLC, an operation in the United Kingdom.

The company is now trading at a historical PE ratio of 8 and has a dividend yield of close to 6%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.