As mentioned in a previous post, over the past 5yrs, the bad debts occurred were only a mere $20M. Once I realized this, the company looks ok. Their big (regular) accounts are all paying their dues on time, and their big cash hoard will help them to tie over the collection period.
So now is, their suppliers (payables) are also offering very good payment terms, albeit the huge size, which is needed for their cash to flow smoothly. As long as the suppliers do not pull the plug and demand immediate or shorter payment, things will be okay.
(06-12-2013, 08:17 AM)NTL Wrote: [ -> ]As mentioned in a previous post, over the past 5yrs, the bad debts occurred were only a mere $20M. Once I realized this, the company looks ok. Their big (regular) accounts are all paying their dues on time, and their big cash hoard will help them to tie over the collection period.
So now is, their suppliers (payables) are also offering very good payment terms, albeit the huge size, which is needed for their cash to flow smoothly. As long as the suppliers do not pull the plug and demand immediate or shorter payment, things will be okay.
I am not too concerned about the receivables because it has stayed fairly constant as a percentage of revenue
Also, if Philips accounts for >65% of revenue, I don't think Philips will start defaulting
Aside from the CCC which I m still trying to figure out, can anyone comment on the PER for manufacturers like valuetronics? Why does the market keep valuing it at a PER < 6? Foxconn PER is >10. of course they manufacture different things but is it expected to b that low?
Who are vauetronics' listed competitors?
Yes, find that low too. Other than that, it hold lots of cash, trade below NAV, and pay dividend around 40% of profit consistently. It should worth a re-rate. So why it stay low? There must be reasons why so.
You can find the list of peers in this old report from OCBC.
http://www.ocbcresearch.com/pdf_reports/...21-OIR.pdf
Since on the topic abt Valuetronics, is it correct to compare this co with Karin & Willas Arr?
Which of these 3 a real value-investing?
Note that Willas Arr dual-listing started in HKEx today - that why its share price shot up today.
Venture corp which is a mid cap stock that also does manufacturing
it usually trades at a higher PER of say 10-15 times
The reason why valuetronics is trading at a much lower PER is because of its management
they do not seem to be interested in increasing dividend payout and they tend to sell out their shares when the stock price has gone up a lot.
and also management tend to award themself with quite a lot of stock options...
so fundamentally if u look at the numbers, the stock may look very cheap but it does come with a price ^^
(06-12-2013, 12:46 PM)NTL Wrote: [ -> ]Yes, find that low too. Other than that, it hold lots of cash, trade below NAV, and pay dividend around 40% of profit consistently. It should worth a re-rate. So why it stay low? There must be reasons why so.
You can find the list of peers in this old report from OCBC.
http://www.ocbcresearch.com/pdf_reports/...21-OIR.pdf
Thanks for this!
Been looking for a peer analysis
(06-12-2013, 01:01 PM)hh488 Wrote: [ -> ]Since on the topic abt Valuetronics, is it correct to compare this co with Karin & Willas Arr?
Which of these 3 a real value-investing?
Note that Willas Arr dual-listing started in HKEx today - that why its share price shot up today.
Karin and Willas are into component distribution, not into OEM. They could be supplying valuetronics in the components needed though.
In fact, if Valuetronics do list in HK, their share price should be much higher too. Just wait.
(06-12-2013, 03:26 PM)felixleong Wrote: [ -> ]Venture corp which is a mid cap stock that also does manufacturing
it usually trades at a higher PER of say 10-15 times
The reason why valuetronics is trading at a much lower PER is because of its management
they do not seem to be interested in increasing dividend payout and they tend to sell out their shares when the stock price has gone up a lot.
Agree with all your points except "increasing dividend payout"
I think the main thing that has gotten investors interested is the dividend. It is generally >5%, and for some, as high as 10% if u got in at a good price
Payout ratio is consistently high at 40% so I don't know how much higher can it go.
If anything, the real problem is a lack of any new growth ventures. The licensing was the only real area of growth but that has failed
Any growth in revenue and earnings is organic, via doing more business with existing clients or attracting more clients
So the management hasnt identified or executed new growth strategies successfully yet
