Sunrise Shares Holdings (formerly: ITE Electric Co)

Just throwing out an investment idea:

Positives:
1. Net-net of approximately $0.10 per share, with almost half in cash and half in quoted securities. Current price of $0.06 represents 40% discount.

2. Practically all assets are liquid.

3. No debt.

4. Company has somewhat turned around heavy losses in the early part of the decade following change of management.

5. Pre-tax profits are positive for past 5 years even after adjusting for fair value gains of securities and Govt's Job Credits.

Vested. Calculations are my own.

What do you guys think?

What does the Company do?

Here are some more information:

NC assets: $0.5mil PPE & deferred tax assets
C assets: $4mil cash, $6mil receivables, $3mil inventories, $5.5mil investment securities

NC liabilities: insignificant
C liabilities: $3mil payables, $1.3mil bank overdrafts

Number of shares: 92.3 mil
NAV per share: $0.15

Company was founded on the business of trading and small-scale manufacturing of electrical equipment and components used mainly in construction. Products include wires, and electric circuit boards. That has now been dramatically scaled back and it seems like the company is putting in cash from discontinued operations and earnings temporarily in securities, apart from maintaining a large cash reserve.

Losses have been cut and bottom-line much improved since the change of CEO in 2006 and it is a curiosity that it is selling much lower than its NAV. I do think that the penny stock status inhibits share value recognition. Or perhaps my calculations and read are wrong.

Hi all,

ITE is another coy that I am researching in.

I noticed its investment portfoilo stands at 20M compared to its mkt cap which is abt 8mil. However, before investing, I would like to find out what are the securities in its portfoilo. I have searched its FY 11 report and found no hints, any VB member can help me dig out what is ITE investment segment's portfoilo?

Last I heard, the company owned a significant block of Liongold, the SGX-listed junior gold-mining related company.

You should also take time to read up on the backgrounds of Harry Lee Vui Khiun and the investors of the private placement done a while back.

(13-02-2013, 09:41 PM)D123 Wrote: Last I heard, the company owned a significant block of Liongold, the SGX-listed junior gold-mining related company.

You should also take time to read up on the backgrounds of Harry Lee Vui Khiun and the investors of the private placement done a while back.

Thanks D123, that explains 8 mil of its 20 mil portfoilo.

Adroit, Innopac, Magnus, Ipco, Asiasons...quite a bad screw IMO. Same people, same discount placement, same crappy M&A. Up to this day, I have no idea why they want to do this. This should make a good story for any inspiring journalist. Makes our watchdog look like pussycats.

PS: A note of thanks to my mentor.

And carriernet...

(13-02-2013, 10:07 PM)CY09 Wrote:

(13-02-2013, 09:41 PM)D123 Wrote: Last I heard, the company owned a significant block of Liongold, the SGX-listed junior gold-mining related company.

You should also take time to read up on the backgrounds of Harry Lee Vui Khiun and the investors of the private placement done a while back.

Thanks D123, that explains 8 mil of its 20 mil portfoilo.

Hi, how did you find out that ITE Electric has $8mil worth in liongold? Does anyone still feel it is still a good buy at current price of 4.6cents considering the huge dip in lion gold?

ITE has an investment arm. So what I did was check ITE's arm shareholding in Liongold and multiply it to get 8M (if memory serves me right). The figures I used were then, so now the figures would have changed according to current mkt price