Singtel share price recently saw red as the telco announced a set of dismal full-year financial results and slashed its dividend pay-out. But it is definitely not the end of the road for Singtel as it primes itself for the next big thing in technology – the rollout of 5G. Should Singtel join forces with the new “King of Technology” in SGX – AEM holdings? How would this even affect AEM share price?
While Singtel share price has been singing the blues lately, AEM share price stormed to high heavens amid the circuit breaker period. Trading at $3.10, AEM share price has risen 100% above the level seen on 23 March 2020. Investors must have regretted for missing the train or selling too early.
Indeed, the rise of AEM is one of the rare fairy-tales in SGX. AEM share price used to trade at penny stock level. However, the epic success of its test equipment for Intel in 2016 – High Density Modular Test (HDMT) semiconductor test handler platform – changed AEM’s destiny forever. The volume ramp and higher sales led to surging run of AEM share price for the past four years.
This counter used to trade at the $6.00 bandwidth. Following the bonus issue of three-for-one shares exercise in March 2018, AEM share price fell off the cliff. But if investors had kept faith with the management, they would be laughing their way to the bank now. While AEM share price has stalled lately, I foresee plenty of potential for this counter to entrench its status as a blue chip tech stock like Venture Corporation.
Much ink has been spilled on the need for AEM to diversify its customer base and reduce its reliance on Intel (about 94% or $303 million of its revenue came from Intel). In the coming years, things would change because of its R&D projects and acquisitions. It is more of executing these projects successfully to unlock the value of AEM share price. In this article, I will share how a potential partnership with Singtel on 5G will further strengthen its position in the semiconductor test equipment industry.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. As of 11 May 2020, I am vested in this counter (holding 10,000 shares at $3.35).
AEM share price in revelation
The explosive form of AEM share price caught many investors by surprise as it took place in the midst of the devastating COVID-19 pandemic. For sure, nobody could have predicted that the virus could have led to the buoyant of AEM share price. Of course, shareholders are not complaining as the rise of AEM share price has created much wealth for them.
Despite the strong momentum of AEM share price, the biggest concern among shareholders must be whether the form of AEM share price is sustainable. A lot will hinge on the successful execution of the expansion initiatives. Three projects will help to ensure the longevity of AEM share price after [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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