Fischer Tech

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The deal sounds too good to be true, probably things are getting bad in Suzhou.

But hey it's China so possibilities are endless. Lol

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Virtual currencies are worth virtually nothing.
For manufacturing, the low value add industries are getting hammered.
The traditional manufacturing hubs are not what they used to be.
Too many factories producing the same item with customers becoming increasingly harder to come by.
Add that to wage pressures. Many factories are moving further inland where wages are much lower.

But having said that certain high value add/ RnD intensive industries are thriving and becoming world class.
Think DJI, leader in drone technology.
Fischer has inched up further after the $0.03/share interim dividend - XD date: 24Nov16; payment date: 6Dec16 - to reach a new high of $1.60 since 7Feb17, and sellers/supply of shares seem to have dried up. Early signs of a coming GO?
Wow! Fischer just hit another new high of $1.86!

Either some crazy people are buying to push up the price for God knows what, or a possibly GO - likely by a 3rd-party at a higher price - is imminent.
Lol positive sentiment lifting all boats. Especially since it looks like china is still stable and growing and SG economy also looks stable.

I have trimmed some positions already.

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Virtual currencies are worth virtually nothing.
I have exited Fischer Tech entirely earlier due to pursue other opportunities and keeping a higher ratio of cash. But I still like it for a lot for many reasons. Ard $1.90 is still a reasonable price even though it is no longer considered a bargain.
Not many companies can provide a certain level of visibility, profit sustainability, high level of cash and decent dividends for the next few years.

Not all Plastic moulding firms are the same. Personally I think Fischer ranks above sunningdale and fuyu.(said the same thing more than 1yr ago i think)
Congrats to you Blue K, for realizing your gains on this one.
If it is a privatisation, it is unlikely to be a low ball offer as Univac (19.16%) would block it.

If it is GO by a 3rd party, it should be at least 1.5X NTA. Respectable 13% ROE (FY16), 85% contribution of revenue from automotive (a more resilient and sticky sector)

If a rising-tide-raise-all-boat scenario, $1.90 is not expensive. EPS 23.7cts (FY16) translates to PE 8.

All 3 scenarios call for a hold. Big Grin
Based on the last full year result, my computation of Fischer tech 4x EV/EBITDA will be $2.40

I believe Spindex is being privatized at 3.8x EV/EBITDA, which I believe one has to see it as cheap or at least attractive otherwise I would not privatise it if I am the Tans, when they are already the controlling shareholder
What is the 10% jump in price today about? Doesn't seem to have any announcement? Anyway no complain for those who are vested.
The toughest thing to do is have to wait for the opportunity patiently.

"Fischer Tech Ltd (the “Company”) wishes to announce that it has received a non-binding expression of interest from a third party relating to a possible transaction involving the shares of the Company. In connection with such expression of interest, the Company has been informed by certain shareholders that they have agreed to enter into exclusive discussions with the third party. The Company understands that the discussions between the Company’s largest shareholder and the third party are ongoing and there is no certainty that any transaction will materialise or that any definitive or binding agreement will be entered into."

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