I am pleasantly surprised by the 2 US cents interim dividends declared (before tax) this evening which will be paid on 27 Dec 2012.
http://info.sgx.com/webcorannc.nsf/Annou...endocument [Book Closure Date]
With the recovery in the India diamond manufacturing sector, we could see a much improved 4Q results. Sarin carried 11.2 US cents worth of cash per share and has no debt. Any buddies vested in this Israeli tech company ?
As always, this is not a buy or sell call.
(Vested)
I have been watching this stock for months but just can't find a favourable entry price to initiate a position. Quite surprised that no one has started this thread so far.
Sarin is the market leader in the field where it manufacture machine that helps to increase the productivity and yield of diamond by mapping, planning or grading through the entire process from rough diamond to polished diamond. These enhancement of yield is very important for the margin of the diamond processor. However, as the diamond industry is very cyclical, Sarin's sales follow the cyclical industry as well.
Since then, it has come up with the Galaxy series which allows it to generate recurring revenue based on annual maintenance contract as well as per usage basis. The profit margin is also much higher for this recurring segment though I am not sure how high it is. Currently, the recurring revenue account for ~20-25% of its revenue and will still be growing. More than 80% of its revenue comes from India which explain the drop in profit and price not too long ago.
The company has really high ROE and balance sheet is strong. FCF has also been pretty strong for this comapny. Chartered Asset Management is also a long term shareholder in this company just like their stakes in boustead and cse global.
(Not vested)
(12-12-2012, 03:11 AM)Nick Wrote: [ -> ]I am pleasantly surprised by the 2 US cents interim dividends declared (before tax) this evening which will be paid on 27 Dec 2012.
http://info.sgx.com/webcorannc.nsf/Annou...endocument [Book Closure Date]
With the recovery in the India diamond manufacturing sector, we could see a much improved 4Q results. Sarin carried 11.2 US cents worth of cash per share and has no debt. Any buddies vested in this Israeli tech company ?
As always, this is not a buy or sell call.
(Vested)
Minor difference, mine shows 11.1 US cents...
Hee... where there's cash and little debts, I'll be interested...
Yes! A pleasant surprise, especially since they were not even announcing their quarterly results. Further, Dividend Policy (something they only started recently) was US 1.25ct on a semi-annual basis (of course only if profitable) means there ought to be another payout for FY12 (Dec) close. This ought to bring yield to a more respectable (by my own yardstick) to 4%+ for FY12 (FY11 = 3%+ @ Div = US 3.25ct).
shanrui_9 Wrote:I have been watching this stock for months but just can't find a favourable entry price to initiate a position. Quite surprised that no one has started this thread so far.
A very illiquid counter most of the times, so not surprising not much interest here. There were some periods of price weakness recently due to strife at Gaza strip (Sarin had to announce they were not affected) + after Q2 results when they gave a weaker forward guidance....
But, it'd previously surged up a lot after their 1-for-4 bonus issue, so, my guess is your target price is based on prior to bonus levels. At current PE of ~12, it's not exactly cheap unless they can continue to show growth...
<Vested>
This stock definitely worth a second look, with vesting and special attention of astute investors e.g. Nick, Shanrui_9 and KopiKat
I have log it into my watch list.
Nice Xmas surprise indeed.
Am cautiously watching closely on their venture towards front end (ie. providing value added services to diamond retailers).
These services are DAS, Sarin Light & Sarin Loupe.
Borsheims of Bershire was signed on to DAS in May 12.
The venture outcome is unknown at the moment, of course their track record in such was not decent (refer to diamond exhange investment writeoff).
But I do believe the venture will contribute substantial amount to recurring income if successfully carried out (BIG IF).
Diamond Brightness the Focus of Litigation Between Major US Diamond Retailers
http://info.sgx.com/webcoranncatth.nsf/V...2002CE45E/$file/Press_Release_Litigation_Between_US_Jewellery_Retailers_on_Diamond_Brightness.pdf?openelement [SGX Announcement]
The litigation between the US-based jewellery retailer will have no direct impact on Sarin Technologies but the Management is hoping the lack of a clear definition or measuring parameter for a diamond brightness will catalyze the adoption of Sarin Light technology among retailers. Previously, Management had mentioned that they wished to close commercial agreement with major industry players by the end of 2012 - hopefully more details will be mentioned in the upcoming 4Q result on its progress.
(Vested)
Sarin Launches DiaMark™ Atom for Smallest Rough Stones – 0.01 to 0.25 Carats
Sarin extends usability of rough planning system to bottom of size range with enhanced cost-effectiveness - more speed less cost!
http://info.sgx.com/webcoranncatth.nsf/V...9002BF6F8/$file/Press_Release_Atom.pdf?openelement [Press Release]
This instrument will replace the previous DiaExpert Nano system due to its lower cost and superior capabilities. The COO expects to deliver several hundred systems this year. If he is right, this will positively impact the larger equipment manufacturing division in FY 2013.
(Vested)
Capital Expenditure... moving international.
Sarin Closes on International Gem Tower Office Space on New York City’s Diamond Way
...closed on the purchase of approximately 500 square meters of office space at a cost of approximately US$ 5 million in the new International Gem Tower, dedicated to the diamond, gem and jewellery trade, now being completed in New York City on 47th Street (Diamond Way) between Fifth and Sixth Avenues. The Subsidiaries have initially paid the above-noted sum from the Group’s internal resources, but expect to finance up to half of the purchase via bank loans.
http://info.sgx.com/webcoranncatth.nsf/V...9003EBDF6/$file/Press_Release_IGT_Closing.pdf?openelement
<vested>
Sarin’s FY2012 Results Release - February 17
Management Discussion and Conference Call - February 18, 2013.
http://info.sgx.com/webcoranncatth.nsf/V...80034E7F0/$file/Press_Release_FY2012_Results_Webcast.pdf?openelement [Details]
Sarin closed at $1.190 on Friday giving rise to a market capitalization of US$325 million. Can Sarin earn in excess of US$32 million in the next few years once its products gain full commercial acceptance (9M 12: US$16.9 million) ?
(Vested)