Grand Venture Technology Limited

[weijian]

The executive team and founders of GVT are ex-Frencken and ex-UMS Holdings. This is one of those smaller precision parts and contract manufacturers on SGX, compared to the other more established and bigger ones like Venture, Frencken and UMS.

Coincidentally, just like ISDN and AEM, the Novus Tellus touch is onto the company as Mr Loke purchased a stake back in early 2021, which coincided perfectly with the semiconductor boom in 2021 for the stock price to rise 2 fold by end 2021. The company did well to raise ~27mil of capital via placing new equity at 2-fold risen prices in Sept2021. On hindsight, the executive team also did well selling some of their stake then

Back in 2019, the company IPO-ed at 27.5cents raising ~12mil. It has subsequently further raised ~50mil in 2021. Just based on gross floor size, factory space has also increased 2fold from ~265k sqft (end FY19, just before covid boom) to ~813k sqft (end FY22). It reminds to be seen whether the capacity increase, just like many other precision parts and contract manufacturers have also done, will lead to short-medium term under utilization or not.

SGX 10-in-10

https://gvt.com.sg/media-release/sgx-10-in-10/

[Behappyalways]

This company has been buying companies for growth.... two cents worth

[weijian]

This company has been buying companies for growth.... two cents worth

hi Behappyalways,

Just did a copy/paste from the 2019 IPO prospectus:

Before the establishment of our Company, Mr. Ricky Lee had been one of the founders and executive directors of Norelco Centreline Holdings Limited (“Norelco”) (now part of UMS Holdings Limited, following a merger in 2004), which is listed on the Main Board of the SGX-ST. Then, Norelco specialised in the design and manufacture of precision machining components and the assembly and integration of equipment and automated assembly lines. Subsequently, in 2007, Mr. Ricky Lee joined Eng Tic Lee Achieve Pte. Ltd. (which was subsequently listed on the Main Board of the SGX-ST as ETLA Limited (“ETLA”)) as an executive director and substantial shareholder. ETLA was delisted in 2009 following an acquisition by Electrotech Investments Limited, now known as Frencken Group Limited. Then, ETLA specialised in contract equipment manufacturing, sheet metal manufacturing and precision machining services.

GVT is just copying what Frencken and UMS did. I reckon there is a difference between "M&A to grow revenue" VS "M&A to grow capabilities"?

[dreamybear]

The executive team and founders of GVT are ex-Frencken and ex-UMS Holdings. This is one of those smaller precision parts and contract manufacturers on SGX, compared to the other more established and bigger ones like Venture, Frencken and UMS.

I wonder what is their intent of forming GVT and their aspiration for GVT ? Fill a significant business need not covered by UMS/Frencken ? Outdo UMS/Frencken one day ? Fulfill business objectives they did not manage to in their previous companies ?

Obviously, I am no expert in this field, having bought Fuyu (fortunately just a tiny stake) before VB Big Toe's sharing on its "competitive disadvantage". ( https://www.valuebuddies.com/thread-3213...#pid168178 ) *lesson learnt*

[weijian]

I wonder what is their intent of forming GVT and their aspiration for GVT ? Fill a significant business need not covered by UMS/Frencken ? Outdo UMS/Frencken one day ? Fulfill business objectives they did not manage to in their previous companies ?

Obviously, I am no expert in this field, having bought Fuyu (fortunately just a tiny stake) before VB Big Toe's sharing on its "competitive disadvantage". ( https://www.valuebuddies.com/thread-3213...#pid168178 ) *lesson learnt*

hi dreamybear,

I do not know the executive team personally nor followed them. So I can't be sure of their "intent of forming GVT". They could have been forced, like getting squeezed out by the new decision makers after merger. Or they seeing the opportunity to jump into entrepreneurship with a huge tailwind from OEM outsourcing into Asia.

I do not have much experience in Fu Yu too. Its website says it is mainly dealing with plastics? And GVT is dealing with stainless steel/aluminum. Anyways, in its IPO, GVT listed its competitors as below:

(a) AllianceCorp Manufacturing Sdn. Bhd
(b) JEP Holdings Ltd
© Frencken Group Limited
(d) UMS Holdings Limited
(e) UWC Sdn. Bhd

[Behappyalways]

Not only that. The stock is currently 'manipulated'. I can said it is superficially supported. Normally when I want to buy stock, I will monitor the counter to see if there are 'players' inside. If there are, I might give it a pass but sometimes it is a plus. Some are top grade players and some are low class players. You need to differentiate them....Like samudera, the players were a big plus and most probably they are out from samudera now ...

Anyway not vested. Just share my views.

This company has been buying companies for growth.... two cents worth

[weijian]

Not only that. The stock is currently 'manipulated'. I can said it is superficially supported. Normally when I want to buy stock, I will monitor the counter to see if there are 'players' inside. If there are, I might give it a pass but sometimes it is a plus. Some are top grade players and some are low class players. You need to differentiate them....Like samudera, the players were a big plus and most probably they are out from samudera now ...

Anyway not vested. Just share my views.

This company has been buying companies for growth.... two cents worth

hi Behappyalways,

Thanks for the information. Anyways, I am just curious - How do you know GVT's stock price is been manipulated? Or any company's stock price is been manipulated? And in GVT's specific case, it is been "superficially supported"? (Pardon me but I am generally ignorant of such manipulation and so would like to know more)

[Behappyalways]

I wish to highlight this is my personal view.... I am wrong often and I will continue to make mistakes...

Maybe the party saw my post so they decided to buy another 10 lots to show 'normal' trading.

Maybe they will buy up tomorrow to show it is a 'normal' counter...

Honestly you need to observe for some time to get a feel what people are doing. There are remisiers and traders out there who have little transaction costs and do this kind of things day in and day out to earn some pocket money from newbies.

You just need time to watch and observe....

Take for example Samudera....a year or two ago, I was watching this buy party 'fighting' with a sell
party at around 57 cents. When their result came out, the share price surges to 80 cents. Some investors sold at at 70+. But if one observes the buying party buying at above 55 to 80 cents, then their average cost is around 70 cents. They cannot possible get out at 75, 80 or even 90 because once they start selling, price will drop. You only need to be alert and ready to dump when price are higher than that. But as they push up to 90, their average cost also increases.

Why waste so much time observing???

Well if you are just buying a few thousand dollars, you can hack care and make things simple.

But if you are vested heavily, by observing, you can get a much higher rate of returns on your investment.

How do I know whether if it is manipulated? Observing....

Sometimes players want stocks to go up, sometimes they want it to go down... depending on their agenda...

Sometimes they are independent parties, sometimes they are interested parties from the company...by observing you can have a gut sense... from what I observe, privatised Roxy was one company with 'heavily' management involvement.... blink eyes.....

Just my two cents worth...

Lastly....

Observe.

And no more reply on this company by me.

Cheers and live a honest life. Don't lie, don't cheat and don't manipulate.....work hard and your luck will improve....

[weijian]

Just my two cents worth...

Lastly....

Observe.

And no more reply on this company by me.

Cheers and live a honest life. Don't lie, don't cheat and don't manipulate.....work hard and your luck will improve....

hi Behappyalways,

As always, thanks for your prompt and honest reply. To be honest, it still sounds quite Greek to me and so I guess it does not click with me.

Part of what you mentioned sounds a bit like technical analysis to me. I don't think there is anything wrong with TA. But this is VB.com and we focus mainly on FA. As such, I think you are more than welcomed to continue to discuss about GVT's fundamentals.

The market participants can have their own mystic and battles. But the company - its owners and employees are probably ignoring all of it, and focused on their roles and responsibilities at the company instead.

[dreamybear]

Take for example Samudera....a year or two ago, I was watching this buy party 'fighting' with a sell
party at around 57 cents. When their result came out, the share price surges to 80 cents. Some investors sold at at 70+. But if one observes the buying party buying at above 55 to 80 cents, then their average cost is around 70 cents. They cannot possible get out at 75, 80 or even 90 because once they start selling, price will drop. You only need to be alert and ready to dump when price are higher than that. But as they push up to 90, their average cost also increases.

I understand this is not about value investing, but it's a genuine question I have. 

While we can see the counterparty who filled our orders, it is the brokerage that is displayed or what we can see depends on the trading platform we use ? We wouldn't know who is the actual person executing the transaction via the brokerage. There can be many people using the same brokerage. 

I think the same goes for the "market depth" function - can't really see who are queuing right ?

Would a remisier be able to see different details via the trading platform ?