(16-05-2014, 07:50 AM)dydx Wrote: (16-05-2014, 12:17 AM)BlueKelah Wrote: This stock is SAFE AND CHEAP
I hope you have also taken note of the loss-making printing plates business held under a PRC subsidiary. The problems there seem quite acute, and may necessitate an accounting write-down of the related fixed and other assets. Be aware and beware!
Thanks for highlighting this...
I didnt like this part of the business as print media is getting less popular so logically speaking demand for printing plates should be on a long term downward trajectory.. However seems like its not a major part of their business. Also according to annual report 2013 that was a trading part of the company so they should be able to just do a write off and stop trading in those plates unlike the contract manufacturing part which they cant stop as they are after all a manufacturing company with expensive factories...
Also as we move from print media to online media, we will need more devices, so they should be making more and more money from the global tech changeover from computers to laptop/mobiles and other smart devices.
Basically PNE is pretty "old" company run by conservative team so I am pretty sure they will sell off or shutdown the china business if its losing too much money. I also had a look at PNE Micron which run by the same family but seems that one the balance sheet doesnt look very attractive...
For me it was basically
50cents to the dollar NAV, 4.5% yield, 50%+ net cash, near floor price, profitable, management not paying themselves too much,
that make me start an initial indicator position which today is a bit profitable...
However I do think that 20 cents++ might be a possibility as NAV is after all 21cents and seems like the recent boost in EPS means more business coming online.
Anyways will update you guys if I do decide to accumulate more. So far the only other counter coming close for me to start accumulate is Fishcer tech but the net cash level is not up to my cutoff 50% yet