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03-09-2016, 09:03 AM
I've just noticed this company due to the coverage in TheFinance.sg yesterday. Original post: https://financialveracity.com/2016/09/02...n-a-stock/
After going through its statements, I'd like to give my 2 cents:
Good things are:
1) positive operation cash flow though largely fluctuating (~3.7 M - 14.1 M in 2011 - present);
2) cash rich (S$ 0.19 - 0.25 per share in 2011 - present);
3) low short/long-term debts as compared to current assets in the past 5 years;
4) improving current ratio in the past 5 years (1.982 in 2012 Jun vs. 3.196 as of 2016 Jun);
5) improving RoE (2.234% in 2012 Jun vs. 7.683% as of 2016 Jun).
My concerns are:
1) slowly shrinking revenues (~176 M - 116 M from 2011 - present) and slow growth in GDP;
2) two main businesses: outsourced services provider & probe cards. I think the outlook probe card is ok because ICs always need testing and debugging. ICs are widely needed, for instances, robots and auto-pilot cars. On the other hand, the outsource business may have difficulties in competing with those in China. Note: Point 2) here is my speculation. No actual data supported;
3) lots of goodwill and intangibles (~S$ 0.239 - 0.245 per share since 2014, and S$ 0.036 before 2014). Frankly speaking, it is difficult to believe that this unknown small cap (despite well managed) deserves so much good wills at present;
4) Not too cheap. Let's take 2/3 x (current assets - total liabilities) / #shares = ~S$ 0.231 per share which is lower than the current price of S$ 0.38.
References:
1) SGX stock facts
2) Morningstar
3) Company homepage
Not vested.
I am a young beginner and this is my first post.
Welcome any comments.
After going through its statements, I'd like to give my 2 cents:
Good things are:
1) positive operation cash flow though largely fluctuating (~3.7 M - 14.1 M in 2011 - present);
2) cash rich (S$ 0.19 - 0.25 per share in 2011 - present);
3) low short/long-term debts as compared to current assets in the past 5 years;
4) improving current ratio in the past 5 years (1.982 in 2012 Jun vs. 3.196 as of 2016 Jun);
5) improving RoE (2.234% in 2012 Jun vs. 7.683% as of 2016 Jun).
My concerns are:
1) slowly shrinking revenues (~176 M - 116 M from 2011 - present) and slow growth in GDP;
2) two main businesses: outsourced services provider & probe cards. I think the outlook probe card is ok because ICs always need testing and debugging. ICs are widely needed, for instances, robots and auto-pilot cars. On the other hand, the outsource business may have difficulties in competing with those in China. Note: Point 2) here is my speculation. No actual data supported;
3) lots of goodwill and intangibles (~S$ 0.239 - 0.245 per share since 2014, and S$ 0.036 before 2014). Frankly speaking, it is difficult to believe that this unknown small cap (despite well managed) deserves so much good wills at present;
4) Not too cheap. Let's take 2/3 x (current assets - total liabilities) / #shares = ~S$ 0.231 per share which is lower than the current price of S$ 0.38.
References:
1) SGX stock facts
2) Morningstar
3) Company homepage
Not vested.
I am a young beginner and this is my first post.
Welcome any comments.