Valuetronics Holdings

(08-11-2013, 08:29 AM)NTL Wrote: Added another HK$60+M of cash for this quarter, around S$0.13 per share. I wonder what they are going to with this huge amount of cash.

hopefully for a share buyback to raise quote to book value (28 SGD cents) ? .... guess not

Doubt there will be any share buyback. Never seen it done before. More likely for expansion purpose. Hope it becomes the next Venture ($7.XX/share)

(08-11-2013, 02:36 PM)Gaudente Wrote: hopefully for a share buyback to raise quote to book value (28 SGD cents) ? .... guess not

Don't hope on it. Historically, mgmt has been holding onto cash.

Should pay attention to the working capital. It has been increasing quite a bit over the quarters. Channel stuffing?

Anyway, I am curious. For them invested, what's your fair valuations (i.e. in terms of P/E or P/B, etc) for this OEM company?

Valuetronics is an OEM manufacturer, is it possible for it to do channel stuffing?

(08-11-2013, 03:49 PM)NTL Wrote: Valuetronics is an OEM manufacturer, is it possible for it to do channel stuffing?

You are right. Probably the wrong word to use.

It's more appropriate to say that their customers are holding back their payments.

(08-11-2013, 03:53 PM)dzwm87 Wrote:

(08-11-2013, 03:49 PM)NTL Wrote: Valuetronics is an OEM manufacturer, is it possible for it to do channel stuffing?

You are right. Probably the wrong word to use.

It's more appropriate to say that their customers are holding back their payments.

This is also my worry... The huge payables and receivables. But it seems to be so with this company. And so far, not much bad debts was declared. Tracing back 5yrs of financial statements, only in 2008/2009 (HK$18.6M) and 2013 (HK$1.1M) where bad debts are provisioned.

wish they just pay more dividends

Extrapolating the half yr results give an EPS of HK$0.40. 40% of that will be HK$0.16 or S$0.0256. Will be nice to receive that amount of dividend in half year time.

"In my opinion, the market seems to price Valuetronics according to its PE of ard 5-6."

If valuetronics can maintain an EPS of 6 cents for next 2-3 years, I will be looking at a target price of 30-36 cents

to buy into a manufacturing company like this, it is best to estimate a conservative cash flow and see how much we should be paying for it.

lets explore the non-guaranteed upside and let it be a bonus but try to pay close to the guaranteed portion.