UMS Holdings

[Boon]

All newbies buying!! What about the sifus and laojiaos? I tempted to add also but think the sell down might not end yet.

EDIT: I mean forum newbies who might be already very familiar with value investing

Sorry, to play devil's advocate here...

So far the posts i read are trying to justify the character of the CEO and the relationship betwen UMS & their only customer - Fair enough
(But no release of info by company despite the price plunge is not very investor friendly - though they have 2 working days to mandatory disclosure - and why is SGX not asking too is another "?")

I think what is missing here is what is the price this company is valued at.

An analysis is only as good as its underlying assumptions !

Due to the nature of its single customer dependency - the accuracy of any valuation made on UMS would be extremely sensitive and highly dependent on the forward looking assumption one has to make in the valuation model - whether manufacturing contract would be renewed (or not renewed) at expiry in 2017.

The difference in values derived at with these two different assumption inputs would be significant – a reflection of high customer concentration risk.

Hence, the crux of the issue still critically centered on – whether manufacturing contract would be renewed at expiry in 2017 ?

(vested)