The Motley Fool

Is there still time to buy Vmoto Ltd?

Vmoto Ltd (ASX: VMT) shares surged 12% on Monday after the company confirmed guidance of earnings between $2.5 million and $3.0 million for the 12 months ending 31 December 2014.

The scooter manufacturing and distribution group “continues to grow earnings, with normalised net profit (excluding one off expenses and impairments) after tax generated for the month of October 2014 of approximately A$537,000 (unaudited). Encouragingly, this is Vmoto’s best monthly profit to date, driven in part by increasing International sales where margins are higher than Chinese domestic sales, and highlights the positive growth path the Company is on.”

Vmoto specialises in the production of electric powered two wheel vehicles, as well as petrol scooters and four wheel all-terrain vehicles. The company has a global distribution network covering 27 countries in Asia Pacific, Europe, North America, South America and South Africa and is growing strongly. The question for shareholders is when they can start to expect dividends.

Earnings of around $3 million for the year would be a great first step, but I suspect the company will be looking for more acquisition opportunities in the short term.

NEW! The Motley Fool’s top dividend stock for 2015

Handpicked by our investment experts, this promising ASX stock boasts a fully franked yield of nearly 6%... putting term deposits to shame! You can get the name and code FREE in our brand-new report, “The Motley Fool’s Top Dividend Stock for 2015.” Click here now for your free copy.

Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.