Lim & Tan Sec. is upgrading their  recommendation on Venture to BUY as

 we believe that the company can sustain a 50 cents dividend payout this year, translating to an attractive yield of 6.9%



 the restructuring of Hypercom will likely be completed by mid-2013 and we expect incremental contributions to Venture in 2H2013

 since the company’s listing 20 years ago, the company had not bought back any shares until late last year when it bought back 100,000 shares between the $7.70-8 level and given its consistently strong free cash flows and net cash position of $294mln as at 1Q ‘13, representing 15% of its market cap, we believe further share buy backs could support the stock

 its 13x PE and 6.9% yield is uindemanding relative to its historical average of 15x and 5-6%.1Q ’13 will likely be the trough in terms of business performance as new customers and products start to contribute in 2Q ’13 and pick up steam in 2H 2013 as the seasonally stronger period kicks in