PNE Industries

(16-05-2014, 12:17 AM)BlueKelah Wrote: This stock is SAFE AND CHEAP

I hope you have also taken note of the loss-making printing plates business held under a PRC subsidiary. The problems there seem quite acute, and may necessitate an accounting write-down of the related fixed and other assets. Be aware and beware!

For the result of the subsidiary, the result will be reflected in the normal P&L.
For the result of the associates, the result will be reflected under "Share of results of associates"


PNE_Ind has been always book the result (gain or loss) of the associate under "Share of results of associates"


PNE_Ind has always book the investment of associates.
The investment of associates have been dropping from $5.051m (Y2009). Now (1H 2014) the investment of associates are $1.067m.

Hence I think PNE_Ind has already account for the write off in associates.

(16-05-2014, 07:50 AM)dydx Wrote:

(16-05-2014, 12:17 AM)BlueKelah Wrote: This stock is SAFE AND CHEAP

I hope you have also taken note of the loss-making printing plates business held under a PRC subsidiary. The problems there seem quite acute, and may necessitate an accounting write-down of the related fixed and other assets. Be aware and beware!

Thanks for highlighting this...

I didnt like this part of the business as print media is getting less popular so logically speaking demand for printing plates should be on a long term downward trajectory.. However seems like its not a major part of their business. Also according to annual report 2013 that was a trading part of the company so they should be able to just do a write off and stop trading in those plates unlike the contract manufacturing part which they cant stop as they are after all a manufacturing company with expensive factories...

Also as we move from print media to online media, we will need more devices, so they should be making more and more money from the global tech changeover from computers to laptop/mobiles and other smart devices.

Basically PNE is pretty "old" company run by conservative team so I am pretty sure they will sell off or shutdown the china business if its losing too much money. I also had a look at PNE Micron which run by the same family but seems that one the balance sheet doesnt look very attractive...

For me it was basically
50cents to the dollar NAV, 4.5% yield, 50%+ net cash, near floor price, profitable, management not paying themselves too much,
that make me start an initial indicator position which today is a bit profitable...

However I do think that 20 cents++ might be a possibility as NAV is after all 21cents and seems like the recent boost in EPS means more business coming online.

Anyways will update you guys if I do decide to accumulate more. So far the only other counter coming close for me to start accumulate is Fishcer tech but the net cash level is not up to my cutoff 50% yet

Looking good. PNE Ind 12.5 cents.

feeling very bad now........itchy hand thought can buy back cheaper, sold before XD

I hope it is moving towards NTA level.

Any idea what's the catalyst behind the rally?

Looks like very likely to hit more than NTA level now, sudden surge today on no news something must be happening, maybe they got another big manufacturing contract, Maybe someone gonna GO this stock or something.

Another stock running up is good but I am running out of undervalued stocks to buy hahaha... First Lantrovision up now this PNE Ind.

Only laggard left is Asia Enterprise with 70% net cash still waiting for a PE turnaround before any action will happen i think.

13.7 cents, up 1 bid.

EGM

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