Valuetronics Holdings

Have exited my position on valuetronics, been a good ride for the past year. At 51cents, (pe 10 based on assumption earnings of 33mil per quarter )I find that its upside is pretty much limited. I wish all buddies who remain vested all the best and hope its ICE segment can do well in the following quarters to come.

I will hold for at least 9 more months to see will the newly announced dividend policy materialised. Given my entry price, I am comfortable to hold if the last dividend payout rate is sustainable and the share price does not dip below 38 cents. If I can collect SGD 15 cents dividend in next 4/5 years, the price can drop to 30 cents and I will have no concern. Of course, that's theoretical speech. If the company keep up with its performance, I do not foresee the share price dipping to such a low level.

I think the sweetest part for this counter is over ....good luck to all

http://www.businesstimes.com.sg/premium/...m-20140813

PUBLISHED AUGUST 13, 2014
Valuetronics Q1 profit hits HK$33.9m
Jump in industrial and commercial electronics revenue
BYJAN LEE
janlee@sph.com.sg

VALUETRONICS has reported net profit of HK$33.9 million (S$5.5 million) for the first quarter of FY15 ended June 30
, up 1.8 per cent from HK$33.3 million a year ago.
Revenue climbed 2.5 per cent to HK$626.6 million from HK$611.2 million a year ago.
Industrial and commercial electronics revenue increased by 36.4 per cent to HK$242.7 million from HK$177.9 million a year ago, but consumer electronics revenue dropped 11.4 per cent to HK$383.9 million from HK$433.3 million a year earlier. The drop in consumer electronics revenue is mainly attributed to the uncertainties of the broader Chinese economy weakening demand.

Sharp drop today... any fundamental reason?

(29-08-2014, 06:55 PM)LocalOptimal Wrote: Sharp drop today... any fundamental reason?

There are actually a lot of traders in SGX. Once a stock chart cross down its dunno how many days moving average, a lot of punters will sell.

(29-08-2014, 09:39 PM)Bibi Wrote:

(29-08-2014, 06:55 PM)LocalOptimal Wrote: Sharp drop today... any fundamental reason?

There are actually a lot of traders in SGX. Once a stock chart cross down its dunno how many days moving average, a lot of punters will sell.

That's what I thought too. Was wondering if I had missed out any announcement. Thanks.

Last announcement was the 1Q report. Only bad news was the CE revenue. Hopefully their ICE could drive the growth moving dorward.

The main concern is the massive squeeze in LED general lighting ASP and margins that is rapidly commoditizing which was their growth driver past 2 years

Valuetronics, Maybank Kim Eng initiate with SELL;

Losing the light; Initiate with SELL (TP SGD0.25, VALUE SP, Technology)

 Initiate with SELL, TP SGD0.25 (4.4x FY16E P/E). Earnings forecast to decline in next two years.
 Major customer spinning off LED lighting business, given fierce Chinese competition, price wars and falling margins.
 Stock unlikely to perform until uncertainties blow over. We would be buyers only at SGD0.25 or below.