What I feel is that management is hoarding the big pile of cash in the balance sheet
and its not making any good returns at all
would be a lot better if they pay some of it out as dividends
just hoping they dun blow off the cash on acquisitions
(06-07-2013, 09:17 PM)felixleong Wrote: [ -> ]any views on the valuetronics as a value buy?
Currently at 20.5 cents
PE about 6, yield about 6%
net cash position and a pretty decent discount to its book value of 28 cents
I think its fair value is probably around 30 cents
an entry at 20 cents could mean a very conservative margin of safety of 10cents (50%)
please correct me if any info in my post is wrong thanks
Been a good run from
20 cents to now, over 50% returns! Time to cash out ^^
(No longer vested)
(11-02-2014, 10:14 AM)felixleong Wrote: [ -> ] (06-07-2013, 09:17 PM)felixleong Wrote: [ -> ]any views on the valuetronics as a value buy?
Currently at 20.5 cents
PE about 6, yield about 6%
net cash position and a pretty decent discount to its book value of 28 cents
I think its fair value is probably around 30 cents
an entry at 20 cents could mean a very conservative margin of safety of 10cents (50%)
please correct me if any info in my post is wrong thanks
Been a good run from
20 cents to now, over 50% returns! Time to cash out ^^
(No longer vested)
Mind elaborating rationale of sale?
reached fair value so exit position loh.
Sometimes can sell when hit fair value, sometimes sell when hit over-valued, up to personal preference of investor.
Ya you are correct.
I think valuetronics is very near its fair value. I wrote about valuetronics in my blog in detail and I gave it a fair value of 30 cents 7 months ago.
Thus at the current price all the positive news is already factored in and there's little to no margin of safety.
I see 2 potential events that might cause the stock price to be adjusted
1) management blowing off the cash on a acquisition (if they are not paying the extra cash as dividends what else can they do with it?)
2) management selling down their stakes (they previously sold at 24c so 28-30c would be juicy for them)
As such, maybe its better to move your $$ to something more certain, especially when blue chips have taken a beating and are selling at decent valuations.
Investors who also when in 6 months ago are sitting on around 40% in paper gain (refer to chart attached), 40% is a very good return for less than 1 year!
(11-02-2014, 02:02 PM)felixleong Wrote: [ -> ]Ya you are correct.
I think valuetronics is very near its fair value. I wrote about valuetronics in my blog in detail and I gave it a fair value of 30 cents 7 months ago.
Thus at the current price all the positive news is already factored in and there's little to no margin of safety.
I see 2 potential events that might cause the stock price to be adjusted
1) management blowing off the cash on a acquisition (if they are not paying the extra cash as dividends what else can they do with it?)
2) management selling down their stakes (they previously sold at 24c so 28-30c would be juicy for them)
As such, maybe its better to move your $$ to something more certain, especially when blue chips have taken a beating and are selling at decent valuations.
Investors who also when in 6 months ago are sitting on around 40% in paper gain (refer to chart attached), 40% is a very good return for less than 1 year!
Current p/e of 5.6 (28 cents to 4.9 for 9mths ended dec13) or
Current p/e of 4.2 (28 cents to 6.6 ( assumption for fy2013) (also assuming hkd to sgd 6:1) both seems to be lower than your earlier valuations , in this case shouldn't the price of the share be still considered cheap ?? ( apologies for the calculation may be incorrect here since this is more like a back of the envelope figure)
Company is still net cash , but like you have mentioned earlier the management seems rather reluctant to pay out its large cash horde as dividend or they might further par down their stake i do agree that these two issue remains as a downside risk.
Valuetronics historically trades between 4 to 8 times earnings, so i tend to value it more towards its dividend payout and nav. Using dividend yield and nav, it looks fairly price but reasonable for me. Hold or sell is fine but at this price better to not buy anymore.
(11-02-2014, 05:00 PM)felixleong Wrote: [ -> ]Valuetronics historically trades between 4 to 8 times earnings, so i tend to value it more towards its dividend payout and nav. Using dividend yield and nav, it looks fairly price but reasonable for me. Hold or sell is fine but at this price better to not buy anymore.
Thank you for the explanation.