Valuetronics Holdings

Good to note that the "low base" effect is over and FY2014 will be a much higher hurdle for them to overcome.

I think capital appreciation for the stock is limited now unless it gains more traction for their attractive yield. Dividend payment for FY2014 is at the maximum 50% payout ratio which means marginal increase in dividend while some possibility for a cut in dividend if they under-perform in FY2015.

don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

I have had very positive experience with this HK company (not Chinese S stock) before. I first bought into this stock end 2008 & early 2009 at 7c-8c, earned a 1c dividend and sold it a year later for a nearly 100% profit as I thought it had limited upside. I regretted selling after it dished out higher dividends and went on as high as 25c subsequently. I think they have got a good track record so far and so this time, I will hang on to them for a longer ride.

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

May i enquire why did you purchase in the first place if u already had knew about the options and mentioning that it would tank??

(30-05-2014, 09:44 PM)InvestArk Wrote:

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

May i enquire why did you purchase in the first place if u already had knew about the options and mentioning that it would tank??

I bought based on what I read in this forum, but after further digging I decided to cash out for a 20% profit.

some red flags that I spotted are
1) management options
2) management selling their stakes
3) cash hoarding... yet not paying it out as dividends nor expanding business with it

what makes you 100% sure that valuetronic's cash holdings is real? Look at Eratat.

(30-05-2014, 09:47 PM)ValueMaster Wrote:

(30-05-2014, 09:44 PM)InvestArk Wrote:

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

May i enquire why did you purchase in the first place if u already had knew about the options and mentioning that it would tank??

I bought based on what I read in this forum, but after further digging I decided to cash out for a 20% profit.

some red flags that I spotted are
1) management options
2) management selling their stakes
3) cash hoarding... yet not paying it out as dividends nor expanding business with it

what makes you 100% sure that valuetronic's cash holdings is real? Look at Eratat.

Well, the fact that they consistently give out decent dividends every year should give you some confidence that the cash flow is real, and now they have even announced a formal dividend policy with high payout ratio. That to me is additional assurance and a good indicator of investor friendliness. Nothing wrong with rewarding mgmt with options if they can deliver superior returns for shareholders.

(30-05-2014, 10:43 PM)psslo Wrote:

(30-05-2014, 09:47 PM)ValueMaster Wrote:

(30-05-2014, 09:44 PM)InvestArk Wrote:

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

May i enquire why did you purchase in the first place if u already had knew about the options and mentioning that it would tank??

I bought based on what I read in this forum, but after further digging I decided to cash out for a 20% profit.

some red flags that I spotted are
1) management options
2) management selling their stakes
3) cash hoarding... yet not paying it out as dividends nor expanding business with it

what makes you 100% sure that valuetronic's cash holdings is real? Look at Eratat.

Well, the fact that they consistently give out decent dividends every year should give you some confidence that the cash flow is real, and now they have even announced a formal dividend policy with high payout ratio. That to me is additional assurance and a good indicator of investor friendliness. Nothing wrong with rewarding mgmt with options if they can deliver superior returns for shareholders.

what is the interest or returns earned on the cash balance that the company is hoarding?

what % of the company does the management team own? are they really fully aligned with shareholders?

With options at 20 cents or below.. why isn't all of them exercised? looking at past records management often exercise some of their options right before ex dividends?

(31-05-2014, 03:55 PM)ValueMaster Wrote:

(30-05-2014, 10:43 PM)psslo Wrote:

(30-05-2014, 09:47 PM)ValueMaster Wrote:

(30-05-2014, 09:44 PM)InvestArk Wrote:

(30-05-2014, 07:05 PM)ValueMaster Wrote: don't forget this is a S-Chip
S-Chips normally have lower valuations

The stock price already doubled from its 20 cents low a year ago

time to be fearful when others are greedy


fyi I sold this out for a 20% gain ^^

May i enquire why did you purchase in the first place if u already had knew about the options and mentioning that it would tank??

I bought based on what I read in this forum, but after further digging I decided to cash out for a 20% profit.

some red flags that I spotted are
1) management options
2) management selling their stakes
3) cash hoarding... yet not paying it out as dividends nor expanding business with it

what makes you 100% sure that valuetronic's cash holdings is real? Look at Eratat.

Well, the fact that they consistently give out decent dividends every year should give you some confidence that the cash flow is real, and now they have even announced a formal dividend policy with high payout ratio. That to me is additional assurance and a good indicator of investor friendliness. Nothing wrong with rewarding mgmt with options if they can deliver superior returns for shareholders.

what is the interest or returns earned on the cash balance that the company is hoarding?

what % of the company does the management team own? are they really fully aligned with shareholders?

With options at 20 cents or below.. why isn't all of them exercised? looking at past records management often exercise some of their options right before ex dividends?

I have been granted options at my company, but I do not exercise them unless they are expiring or if I want to cash out (ie exercise & sell), because the holding cost is zero and no capital needed. It is logical to exercise some options to be entitled to dividends, especially if yield is good.

(30-05-2014, 07:00 PM)dzwm87 Wrote: Good to note that the "low base" effect is over and FY2014 will be a much higher hurdle for them to overcome.

I think capital appreciation for the stock is limited now unless it gains more traction for their attractive yield. Dividend payment for FY2014 is at the maximum 50% payout ratio which means marginal increase in dividend while some possibility for a cut in dividend if they under-perform in FY2015.

Agreed with the 1st statement
Don't think valuetronics will do particularly poorly, but the MOS is gone, and the bulk of the appreciation in the near to mid term is over

Interesting going through the recent threads. Valuetronics is my core stock which I started investing at about 20 cents (there were no research houses covering this stock) and still vested. I recently checked its quarterly revenue figures over past 2 years and came away with positive feelings on its CE and ICE business. My findings are -

ICE – rising sequential Q growth in revenue (since Q3 13), better margins than CE (17% against 10%).
ICE/Total Rev = FY13 - 28.4% FY14 - 32%

CE – though seasonality trend is evident with weaker 2H, however, seasonality impact is lesser in FY14 with stronger 2H14 sales (up 15.5% y-o-y). 2H13/1H13 = 73% 2H14/1H14 = 87%

Overall, supported by 2H14 revenue strength, I expect revenue growth, for both segments, to continue into FY15. Lower seasonality trend for CE will ensure better distribution of quarterly revenue. Strength in ICE revenue looks set to maintain with record revenue for Q4 14 and positive growth trend since Q4 13.

I see Valuetronics as a small cap gem. Recent target price was raised to 60.5 cents by Phillip Capital.