Monday, July 03, 2006

Stock News: GES on hopes to be taken over!

GES International, a maker of point of sales terminals, extended its gains on hopes it will eventually be taken over even though the company said there are no merger and acquisition proposals on the table, dealers said. Kim Eng Securities analyst Gregory Yap said GES had exploratory talks with Venture Corp before the latter bought a stake in DMX Technologies in January this year. "I think the Venture interest is there," Yap said. But whether Venture eventually buys GES or not, Yap said he remains positive on GES given its strong earnings prospects. "Its a buy... A takeover deal is a bonus," he said, noting that GES is currently trading at an attractive prospective year to June 2007 price earnings ratio (PER) of 11 times. For a company that grows earnings by over 20 pct annually, Yap said such a PER is undemanding. GES was up 0.03 sgd or 2.91 pct at 1.06 with 5.18 mln shares changing hands, while Venture was up 0.10 sgd at 0.94 pct at 10.70 with 68,000 shares traded.

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