Avi-Tech Electronics

[BlueKelah]

avi tech has not really experienced a turnaround per se.

Their core Burn in boards business has been a steady cash generative business for quite some time already. losses over past few years were just due to failed venture into non core business that drag on the profitable core business.

So they return to profitability and looks like a turnaround, but really the core business did not go down in the first place unlike other turnarounds where core business was not doing well and company gets turnaround by cutting costs and streamlining and getting more sales.

for PNE Indus, the last run up was not due to business improving or growing a lot but rather a one off gain from sale of most of malaysian subsidiary and concurrent possible buy in of a major shareholder at a premium price. Would consider that run up having a speculative component, which of course could not be sustained after the buyer went away.

historically Avitech has had a good core business and steady div. payout and there is no reason it wont continue making more money so long as its core business sector remains good.