Ban Leong Tech

[camelking]

Was looking at Ban Leongs's last financial report, ie. 1H FY11/12, which was lodeged in Nov 2011.
Looks interesting: Revenue flat, PAT improved 33%, slight improvement in gross and net profit margins, EPS 1.09 cents (looking at past reports, BLT earns more in the 2nd half of the FY- usually 60% of their earnings, presumably over the Dec and Jan festive seasons and the various IT fairs- hence annualised EPS should be in the region of 2 cents or more), NAV around 20 cents.
Worrying observation is their increase in trade receivables and inventory turnover and decrease in cash and cash equivalents.
At a price of 12 cents, PE should be about 5- 6 (projected-taking into the possible annual EPS of 2 cents). If it gives out a div or 0.5 cents or 1 cent, yield will be between 4- 8%. This however is a very illiquid stock and the computer business is highly volatile.
Anyone any thoughts on this counter?

Been investing in equities for a number of years. And ALL of my losses came from investing in the below categories of companies
1. Small cap company (less than $200m)
2. Overseas companies
3. Electronics related companies

1.Illiquidity is one thing, small float of shares which allow manipulation is another reason.
In addition, being small means that they will find it more difficult to recover from recession,changes in industry landscape and lost of a major client.
2. I am refering to Hong Kong and China companies. They can report huge profits for a year to be followed by huge losses the next year.
And "why are they listed in Singapore?"
3. Electronics. The industry changes so fast. What do we know about the industry really? There is no cycle to follow unlike shipping and property. The general economy can be doing well but if the electronic company u invested has not adapted to the rapid changes in the industry, the company is dead and so are you.

Just my opinion...