30-03-2015, 03:45 PM
Starting a new thread here as I did not find anything on ISDN Holdings so far.
http://www.nracapital.com/research/sgxre...1503z5sbuc
http://infopub.sgx.com/FileOpen/ISDN-Sli...eID=340229
Read a very recent report on ISDN with target price of $0.29 and saw some analyst briefing slides and did some of my own basic research on the stock.
Pricing wise, I got attracted by it as I noticed that it has been beaten till its really blue and black and I am always attracted by these unloved "dogs".
Dividend wise, good thing is that it has paid out dividends for the last 9 out of 10 years although the yield cannot be considered attractive at 1.95% now. Certainly not one for dividend stock lovers.
After the severe beating, it is currently trading at a pretty steep discount to asset value of $0.316. Company has a healthy balance sheet with net cash of $23.8m or $0.067 per share. Pretty attractive in my view and its core business has been generating pretty decent cash flow over the years.
Insider buying is positive as between 14 May 2014 to 9 June 2014, ISDN's Managing Director bought a total of 1,682,000 at prices between $0.393 - $0.415. I guess he is sitting on quite a big paper loss now
Adding to the above, the company was also buying back shares aggressively late last year at prices of around $0.24 - $0.25.
PE Ratio is an undemanding 10x now and clearly, the catalyst for its share price is dependent on how it executes its pipeline of energy projects in Indonesia and Myanmar.
In my opinion, I think the current beaten down share price has already factored in a complete disaster which I feel is a bit too harsh considering it has teamed up with China Huadian in China and managed to secure investments of US$6.4m from investor Robert Alexander Stone and US$8m from listed co. See Hup Seng Ltd (now known as SHS Holdings).
Whilst I do not have a crystal ball to predict how well ISDN's energy projects will pan out (contributions supposed to kick in 2HFY16), I do think that with the core business providing steady income coupled with its beaten down share price, the risk-reward ratio is rather attractive in my opinion now as I feel downside is pretty much limited.
http://www.nracapital.com/research/sgxre...1503z5sbuc
http://infopub.sgx.com/FileOpen/ISDN-Sli...eID=340229
Read a very recent report on ISDN with target price of $0.29 and saw some analyst briefing slides and did some of my own basic research on the stock.
Pricing wise, I got attracted by it as I noticed that it has been beaten till its really blue and black and I am always attracted by these unloved "dogs".
Dividend wise, good thing is that it has paid out dividends for the last 9 out of 10 years although the yield cannot be considered attractive at 1.95% now. Certainly not one for dividend stock lovers.
After the severe beating, it is currently trading at a pretty steep discount to asset value of $0.316. Company has a healthy balance sheet with net cash of $23.8m or $0.067 per share. Pretty attractive in my view and its core business has been generating pretty decent cash flow over the years.
Insider buying is positive as between 14 May 2014 to 9 June 2014, ISDN's Managing Director bought a total of 1,682,000 at prices between $0.393 - $0.415. I guess he is sitting on quite a big paper loss now
Adding to the above, the company was also buying back shares aggressively late last year at prices of around $0.24 - $0.25.
PE Ratio is an undemanding 10x now and clearly, the catalyst for its share price is dependent on how it executes its pipeline of energy projects in Indonesia and Myanmar.
In my opinion, I think the current beaten down share price has already factored in a complete disaster which I feel is a bit too harsh considering it has teamed up with China Huadian in China and managed to secure investments of US$6.4m from investor Robert Alexander Stone and US$8m from listed co. See Hup Seng Ltd (now known as SHS Holdings).
Whilst I do not have a crystal ball to predict how well ISDN's energy projects will pan out (contributions supposed to kick in 2HFY16), I do think that with the core business providing steady income coupled with its beaten down share price, the risk-reward ratio is rather attractive in my opinion now as I feel downside is pretty much limited.