Brook Crompton (formerly Lindeteves Jacoberg)

This is probably one of cheapest turnaround stock with decent financials.

The motor sales & distribution business has impressed with a turnaround in the last 3 years.

Cash is now $8M at end FY14, and Retained Earnings 22M.
For its last FY14, its profit before tax rose 33%, while sales was flat.  The P&L for FY14 shows a > $20M loss because of the writing off of some dormant subsidiaries in MY and HK.  This item is non-cash.  And was incurred before the current management ran the company.

The company depends on products from ATB and Wolong Group.  Wolong is probably the leader in motors in China.  Wolong supplies the motors and provides interest free loan to LJ.  LJ has repaid the loan till $5.9M at end FY14.  The plan is to repay all the loan by 2016.  THere is unlikely to dividends till loan is repaid.

For this FY, the company is planning to build more growth foundation in Asia Pacific.  

From its financials, it has been selling more motors which it buys from Wolong but brand as Brook Crompton W series.  THe W series is a lower margin motor that helps the company drive sales.  Hence there is possibility of incremental growth in sales but a slightly lower margin.

The capex is minimal - $250K and $200K in FY14 and FY13.  Hence there is good cash generation capability.

At NAV of 3.1 cts, PTB is 1.3 times.  

Stock will get 20-1 consolidation so there could be punters who want to cash out.

Maiden dividend of 0.2 cents announced immediately after the company have fully paid up all the debt owed to the mother company. Very positive sign.
The company now have 0 debt, minimum capex and around 4m operation cash flow every year. I am expecting more dividend next year for this cashcow.

By the way, the company has changed name to Brook Crompton. Maybe admin can move this thread under the new name?

(24-02-2017, 11:05 AM)lanina1 Wrote: Maiden dividend of 0.2 cents announced immediately after the company have fully paid up all the debt owed to the mother company. Very positive sign.
The company now have 0 debt, minimum capex and around 4m operation cash flow every year. I am expecting more dividend next year for this cashcow.

By the way, the company has changed name to Brook Crompton. Maybe admin can move this thread under the new name?

Wow, one day 80% gain, money drops on your head like rain! Good stock indeed

http://infopub.sgx.com/FileOpen/BCH%20Q4...eID=440389

Dividend of 2.0cts bro. Even in a very tough year, they pay 2cts out of 12cts EPS, after paying back Wolong their major shareholder.

(25-02-2017, 01:46 PM)Contrarian Wrote: http://infopub.sgx.com/FileOpen/BCH%20Q4...eID=440389

Dividend of 2.0cts bro.  Even in a very tough year, they pay 2cts out of 12cts EPS, after paying back Wolong their major 

Apologies, typo. With such little capex, comapny can easily pay half of their earning which is 6 cents translating more than 10% yield based on last done price

(25-02-2017, 02:01 PM)lanina1 Wrote:

(25-02-2017, 01:46 PM)Contrarian Wrote: http://infopub.sgx.com/FileOpen/BCH%20Q4...eID=440389

Dividend of 2.0cts bro.  Even in a very tough year, they pay 2cts out of 12cts EPS, after paying back Wolong their major 

Apologies, typo. With such little capex, comapny can easily pay half of their earning which is 6 cents translating more than 10% yield based on last done price

Good
1.  They repaid the debt to Wolong over last few years. Now the balanced sheet has only short term loan S$1.84M, vs Cash $8+M.
2.  Even in a very tough O&G market, they can make decent profit
3.  The capex is funded by Wolong, wolong produces all the motors in its factories.


Bad
Brezit GBP devalue wiped out $2M from their profit
Don't know when O&G will turn and they can charge higher prices for the motors

This undervalued gem delivery another solid quarter result with ~1m profit and 1.2m fcf.
Current market cap only 25.5m, with 14.5m backed by cash, zero debt.
Which works out trailing pe of merely 5.5 and trailing p/fcf of 5.3.

Plus: Very low valuation, Cash cow with very low capex, O&G recovering, potential dividend increase.

minus: no/low growth from current trend, very low trading liquidity.

Been eyeing this for a long time. But I have given up since there were no sellers.

Below book value!!! Who wants to sell??? :-)

No Capex and product development !!!

(10-11-2017, 08:55 PM)lanina1 Wrote: This undervalued gem delivery another solid quarter result with ~1m profit and 1.2m fcf.
Current market cap only 25.5m, with 14.5m backed by cash, zero debt.
Which works out trailing pe of merely 5.5 and trailing p/fcf of 5.3.

Plus: Very low valuation, Cash cow with very low capex, O&G recovering, potential dividend increase.

minus: no/low growth from current trend, very low trading liquidity.

No seller how to buy?