Further investing metrics to support my view:-
Trailing PE = 6.4, adjusted PE = 3.2 (net off cash holdings)
Trailing DY = 7.6%, DPS = 3.2 cents
FCF per share = 12.6 cents
Company has the right to reward deserving employees with share options and I have no problem with that. On the other hand creating shareholder value should also be the management's priority. I see Valuetronics as delivering on both fronts for FY15.
(22-06-2014, 07:24 AM)lotustpsll Wrote: [ -> ]Interesting going through the recent threads. Valuetronics is my core stock which I started investing at about 20 cents (there were no research houses covering this stock) and still vested. I recently checked its quarterly revenue figures over past 2 years and came away with positive feelings on its CE and ICE business. My findings are -
ICE – rising sequential Q growth in revenue (since Q3 13), better margins than CE (17% against 10%).
ICE/Total Rev = FY13 - 28.4% FY14 - 32%
CE – though seasonality trend is evident with weaker 2H, however, seasonality impact is lesser in FY14 with stronger 2H14 sales (up 15.5% y-o-y). 2H13/1H13 = 73% 2H14/1H14 = 87%
Overall, supported by 2H14 revenue strength, I expect revenue growth, for both segments, to continue into FY15. Lower seasonality trend for CE will ensure better distribution of quarterly revenue. Strength in ICE revenue looks set to maintain with record revenue for Q4 14 and positive growth trend since Q4 13.
I see Valuetronics as a small cap gem. Recent target price was raised to 60.5 cents by Phillip Capital.
Previously they included a 25% "discount" to reach their valuation of $0.43. I wonder why they do not apply the same "discount" this time round?
Valuetronics had been covered by Phillip Capital, and previously also by OCBC, since 2009. You must had been a long follower of this company.
Phillip started covering when the price was about 33 cents. My guess is that the discount was removed after talking with the management of its business prospects. Looking at Valuetronics one is investing not only on a financially sound company but a potentially growing business model. Even at today's price it is cum > 7% dividend yield. Difficult to find such stock and the coverage by Phillip Capital only adds to its allure.
I am essentially a value investor and this has been one of my best finds since I started investing in SGX in 2011.
Looks like a mutual fund has been selling into the rally..........but it went under 5% so wont hear from them anymore......
My point of view is that I invested early and am enjoying the dividends, the market will have to offer a lot more meat to pry this baby away from me........
Selling is not the problem, finding the next gem/idea is
(23-06-2014, 10:29 PM)newborn1000 Wrote: [ -> ]Looks like a mutual fund has been selling into the rally..........but it went under 5% so wont hear from them anymore......
My point of view is that I invested early and am enjoying the dividends, the market will have to offer a lot more meat to pry this baby away from me........
Selling is not the problem, finding the next gem/idea is
Hi newborn,
Take a look at Spindex. The company attracted my attention based on their financial statements, and thanks to PhillipCapital for pointing it out. I have placed a little vested interest in the company while I study it further.
(23-06-2014, 04:19 PM)lotustpsll Wrote: [ -> ]Phillip started covering when the price was about 33 cents. My guess is that the discount was removed after talking with the management of its business prospects. Looking at Valuetronics one is investing not only on a financially sound company but a potentially growing business model. Even at today's price it is cum > 7% dividend yield. Difficult to find such stock and the coverage by Phillip Capital only adds to its allure.
I am essentially a value investor and this has been one of my best finds since I started investing in SGX in 2011.
The reasons for the low coverage by broker firm is due to its historical low volume, and also the low capitalization. Maybe if the price can somehow double in the future, and give a capitalization of over $300M, then maybe it is more worthwhile for broker firms to talk more about it.
Phillip Capital has now provided the visibility to this stock and that is good. Agree, capitalization needs to go up to attract more interests.
What makes Valuetronics exciting is that it is an established group with more than 20 years history and the management has experienced both the ups and downs of the economic cycle. Based on my analysis of its quarterly revenue data for past 2 years, it supports the view that FY15 would be a better year for both sales and profitability. The last 2 Qs were particularly strong and the momentum may carry on.
(25-06-2014, 05:02 PM)NTL Wrote: [ -> ] (23-06-2014, 10:29 PM)newborn1000 Wrote: [ -> ]Looks like a mutual fund has been selling into the rally..........but it went under 5% so wont hear from them anymore......
My point of view is that I invested early and am enjoying the dividends, the market will have to offer a lot more meat to pry this baby away from me........
Selling is not the problem, finding the next gem/idea is
Hi newborn,
Take a look at Spindex. The company attracted my attention based on their financial statements, and thanks to PhillipCapital for pointing it out. I have placed a little vested interest in the company while I study it further.
It would had be my cup of tea during 2012........but not at current levels, great margins though
AMFraser also join in the rank of recommending Vakuetronics, with a target price of S$0.69!
"We initiate coverage on Valuetronics with a high conviction BUY rating with a DCF‐based price target of S$0.69 (upside of 73%). Valuetronics is an integrated electronics manufacturing service (EMS) provider based in Hong Kong, with manufacturing facili?es in Guangdong, China. Unloved by the market over the last few years, Valuetronics has demonstrated that it is rising back from the ashes. Right now it is still trading at valuation levels associated with its darkest hours; this should not be the case in our view"
http://www.remisiers.org/cms_images/rese...g_Buzz.pdf
electronics quite hot.. especially recently some US semi con price surge... hmm..