Asked by Anonymous
Asked on 27 Sep 2018
Discuss anything about VICOM Limited SGX: V01 share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell VICOM Limited SGX: V01 on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in VICOM Limited SGX: V01
Vicom is a cash cow dividend stock at current stage and has limited growth potential. If you are looking for a stock that pays you consistent dividend then you might want to consider vicom. Of course you need to do your own due diligence and calculate your own entry price.
This is probably one of the most stable revenue/profit company through good and bad times in my opnion.
The singapore government is protecting the company by not issuing new licenceses into other companies into its car inspection industry. Its moat is basically being protected by the government. However, that said, the car population is plateuing, so what it did was increase its prices recently and a lot of car owners suck thumb still have to pay. Monopoly and an essential service, price hike consumer have to LL suck thumb too.
This is a true example of a moat company, except unfortunately it is because the Singapore government gave it the ability to be a part of a duopoly
It is definitely a good business but this stock is not as active as other stocks.
27 Sep 2018
Seems interesting as a business! I remember going to pay for my vehicle inspection also for the emissions and ERP stuff. Stable and cashflow businesses. That focuses on giving out dividends rather than agressive capital gains.
"As the market leader in the vehicle inspection business in Singapore, VICOM enjoys a stable, recurring stream of cash flow from the constant number of mandatory vehicle inspections performed every year. Beyond that, SETSCO gives its parent company an element of growth as it continually expands its presence in the TIC market.
VICOM is a solid, “boring” business that keeps going on and on and on — which is exactly the way I like it."