Valuetronics Holdings

[NTL]

I just sold out all my 700 lots yesterday and today at prices between $0.365 - $0.375
Valuetronics has been a good investment for me, with a return of approximately 52% in less than a year.

Reason for selling out is that it has hit my target price, and that the hype means it is no longer cheaply valued.
Will have to find better areas to reinvest the proceeds.

Good luck for the FY14Q4.
I think the dividends will be at least 13 HK cents.
Based on an approximate 40% payout

A nice 50% profit to you. Congrats!

Just to add a little of my opinion. I feel that the hype just started. There will be more upside to come. If the result turn out to be expected, i.e EPS of 40 HK cents, dividend of 16 HK cents, the share price can likely hit 40c or more. Even at 40c, the PE is still less than 4 ex cash, and a decent yield of 6.4%.

Hopefully they will declare a special dividend to rewards their loyal followers.

The wonders of the stock market. I bought and sold at $0.37 at what I thought was a very good profit. As mentioned earlier, I thought it was no longer cheaply valued at my exit price. On hindsight, other VBs who mentioned about more upside to come were right, but IMO, the valuations didnt support that.
There's no way of deciding how far more it rose from my exit.
Just a short few mths since then, now it has crashed to even below my exit.

The fall in price is not due to valuation, but due to the possibility of Philips selling off their Lighting business, and the possible impact on Valuetronics. In all the previous discussion, this event had not known to me then.

For now, yes, this uncertainty is certainly weighing down on the future of Valuetronics. So, what should be the value for Valuetronics IF they really lost the entire lighting business? 25c as mentioned by Kim Eng?

I consider that part of valuation; not quantitative perhaps, but definitely qualitative valuation
It's precisely the weak moat that valuetronics has, that warrants a wide MOS.
When I sold out at 0.37-0.38, the valuations quantitatively were still pretty cheap, but taking into account valuetronics is in a business where it's just simply difficult to get much of a moat, the valuations can't just be cheap. Many manufacturers are cheap and remain so indefinitely
Looking at the economics of the business, the price can't just be cheap, it has to be ridiculously cheap. IMO, once it starts looking just cheap, it becomes a mediocre investment. As WB said, an average company at a great price can be a gd investment, the reverse is true as well
Even if Philips sells out, I don't think they will cut off valuetronics as a manufacturer immediately. The new owners, as with any acquisition, will look at their revenue and costs and prob try to squeeze their margins further

Having read the KimEng report once more, and google for more information, the report seems more of a speculative nature than true analysis. They are just splitting into 2 entities.The CEO was saying that the new Lighting entity may get debt investors (sell?) or listed separately to gain access to the capital market. Many companies did that so that each entity can focus on their own area. Whether this is good or bad for Philips, or Valuetronics, is really a very long term thing.