LIFETIME MEMBERSHIP On 24 February, Russia sent global markets into a devastating turmoil following the full-scale invasion on Ukraine. Yet on that fateful day, Global Testing share price stunned Singapore stock market when it took off like a rocket, surging an eye-popping 130% within a week to hit a high of $1.42. The incredible surge of Global Testing share price confounded many investors. Due to this, a Lifetime Member has requested a coverage on this interesting counter.
For background, Global Testing provides testing services such as wafer sorting and final testing for mixed-signal and logic integrated circuits to the semiconductor industry. Its testing services include test program development and conversion. In addition, they also help their customers to convert single-site testing to multi-site testing to shorter their turn around time. Being listed in SGX, the company’s main testing facilities are based in Taiwan. Its customers include Taiwan Semiconductor Manufacturing Company Limited (TSMC) and United Microelectronics Corporation (UMC).
Although Global Testing has been listed in SGX Mainboard since 2005, the market capitalization is very small – at about $43 million. The market capitalization would have been even much lesser if not for the meteoric rise of Global Testing share price lately. The total number of outstanding shares stood at just 35 million and 45% of the stakes are held by Yageo Corp, Mr Chia Soon Loi (Non-Executive Chairman of Global Testing) and Mr Chen Tie-Min (Chairman of Yageo Corp).
Due to the fact that most of the shares are held by a few major shareholders, the counter suffered from an extremely poor liquidity. Average 3-month volume amounted to just 930,000 shares. Against this backdrop, a question is whether Global Testing share price will do an AEM Holdings, which rose from the ashes like a phoenix to become a leading technology stock in Singapore? In the stock market, anything can happen, so never say never!
To be sure, the supersonic form of Global Testing share price was not just due to its stellar FY2021 financial result. In my opinion, the counter hit heavens because of the proposed $0.20 dividend, which was quite amazing as Global Testing share price was trading at just $0.60 on the date of the announcement. This represented an incredible 33% dividend yield for investors! Needless to say, investors rushed to buy in the shares, sending Global Testing share price to a high of $1.42 on 2 March 2022.
It remains to be seen if Global Testing share price would crash following the book closure date on 29 April. In this article, I will share my insights on Global Testing share price outlook in FY2022.
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. Furthermore, I am not vested and have never invested in Global Testing before. Whether Global Testing share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Global Testing share price to explode with AEM merger?
Looking back, it has not been a bed of roses for shareholders as Global Testing share price plummeted from $2.80 in 2015 to a low of $0.25 in March 2020. The past few years had been challenging as the company sustained consecutive losses in 2018 and 2019. The current semiconductor boom, largely driven by the pandemic, had led to a revival of Global Testing’s business.
As the semiconductor industry is highly cyclical, the current form of Global Testing share price may [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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