05-08-2011, 09:46 AM
Is it going to be end of the world once again
I just got some Adampak at 24.5 cents. Considering that the HDD industry is still growing at sub 10% rates I see lots of value in Adampak...especially if they are able to maintain their payout rates at 3 cents/ annum...
the whole company is now valued at S$64.5 million...with net cash on hand of about US$16.285 mil (S$20 million based on a rate of US$1=S$1.22) based on the 1Q11 results. If we remove the cash on hand from the market cap the whole company is now available for S$44.5 mil. Considering that the projected earnings for the next few years should be at least US$7 mil (ie S$ 8.5 mil) per year, the market is valuing Adampak at just 5 years of earnings. Is there a very high risk in purchasing Adampak at this price...
Only time will tell...Appreciate inputs from fellow forumers...
I just got some Adampak at 24.5 cents. Considering that the HDD industry is still growing at sub 10% rates I see lots of value in Adampak...especially if they are able to maintain their payout rates at 3 cents/ annum...
the whole company is now valued at S$64.5 million...with net cash on hand of about US$16.285 mil (S$20 million based on a rate of US$1=S$1.22) based on the 1Q11 results. If we remove the cash on hand from the market cap the whole company is now available for S$44.5 mil. Considering that the projected earnings for the next few years should be at least US$7 mil (ie S$ 8.5 mil) per year, the market is valuing Adampak at just 5 years of earnings. Is there a very high risk in purchasing Adampak at this price...
Only time will tell...Appreciate inputs from fellow forumers...
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