i-CABLE: Watch the Dividend and the Upside

| About: i-Cable Communications (ICAB)

Don't feel bad if you've never heard of i-CABLE Communications Limited (ICAB). It's a cable company based in Hong Kong. The last few years I've been a bit rough for the stock; five years ago it was trading at $15, two years ago it was at $8, and now it's trading below $5. But it offers a solid dividend of nearly 6%, and I think the low share price only means you have a chance to make some real profit.

While ICAB's stock has been dropping over the past few years, the company has been setting itself up for a highly profitable future. In addition to offering pay-TV services and maintenance for satellite television subscribers, ICAB has been developing ways to make the most out of its cables. It is offering broadband service and voice-over-internet protocols to bring in revenues for telephone service.

Given the past couple years, this one is a bit uncertain, of course, but I think ICAB is poised for growth. It offers essential services to a wealthy market, and its low share price and solid dividend mean there's not a great deal of risk. It may not go up as I expect, but I think you'll make some money on the dividend in any case.

Type of stock: A Hong Kong cable and telecom company with room for growth.

Price target: As long as it's below $5 and you've got risk capital to play with, I think this is all about potential upside.

ICAB 1-yr chart