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Avi-Tech Electronics
23-08-2011, 09:42 PM.
Post: #1
Avi-Tech Electronics
I thought Avi-Tech's just released FY11 (ended 30Jun11) full-year results make interesting reading....
http://info.sgx.com/webcoranncatth.nsf/V...penelement [Results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...penelement [Presss release]

What strikes me is that despite the lower profit - very much caused by operating losses in the 2 U.S. based acquisitions made in the FY and the related professional/consultancy fees incurred - Avi-Tech ended the FY with a large $37.5m nett cash reserve. This is equivalent to a nett cash of $0.109/share, based on the 344.24m issued shares as at 30Jun11. Against the last done share price of $0.10 (on 22Aug11), Mr Market is now attaching no value on Avi-Tech's operating businesses!

A $0.0025/share Final dividend declared.


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25-11-2011, 08:03 AM.
Post: #2
RE: Avi-Tech Electronics
Just checked my bank account and noted a credit from Avi-Tech's $0.0025/share Final dividend for FY11 (ended 30Jun11). Feeling good!

Despite having reported an expected small operating and cash loss in 1Q (ended 30Sep11).....
http://202.65.242.22:9205/061D7FCB221D3A...penelement
, I guess it is relevant to note that as at 30Sep11, Avi-Tech had a nett cash reserve balance of some $36.7m, which is equivalent to $0.107/share, based on the 344.24m outstanding issued shares. So based on the last done share price of $0.108, Mr Market is attaching no additional value to Avi-Tech's operating businesses and new investments!

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13-12-2011, 07:01 PM.
Post: #3
RE: Avi-Tech Electronics
Today (13Dec11), Avi-Tech resumed buying back its own shares, and bought back 55 lots at a low price of $0.098/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Todate, the company has bought back 6,215,000 shares, or 1.77% of its total 350,400,096 issued shares.

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21-08-2012, 02:01 PM.
Post: #4
RE: Avi-Tech Electronics
am vested in this. running thru the financials i did some impairment of receivables (30% off), 100% inventory, 4m off the PPE, all of the intangibles/goodwill and I still get a P/B of 0.56 purely on cash/bonds/etc.

but if the company persists in their basically zero ROE biz I guess this cushion will erode at some point.

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21-08-2012, 02:33 PM.
Post: #5
RE: Avi-Tech Electronics
Just some quick calculations:

On cash & fixed deposit alone - netting away all liabilities will result in 5.5c per share

On cash & fixed deposit + PP&E - netting away all liabilities will result in 9.9c per share

Clearly, PP&E can skew the conservative figure by a significant bit. If we include PP&E, then we are implying a liquidation value. In other words, how much Avi-Tech is worth if we sold the entire business now.

Don't forget, the market is probably discounting the company for its loss-making semi-conductor biz. It is burning cash of S$2.5m this year. In a few years, the cash will be depleted.

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21-08-2012, 02:58 PM.
Post: #6
RE: Avi-Tech Electronics
i figured the PPE isn't worth zero as they drew a loan against it (7+m). that said, agreed that the company is being discounted for its extremely low ROA core biz.

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10-09-2014, 12:30 AM.
Post: #7
RE: Avi-Tech Electronics
Thought I surface this counter to buddies again after today's relatively high volume of 1m traded, at around 6cts.

Have been following Avi-tech for few years due to their high cash as some buddies highlighted in earlier threads. However, their imaging and energy efficient division basically 'burn' through their cash over past 4 years, cummulatively around $22m of equity destroyed. Going forward, company has decided to restructure and discontinue this division.

I took a small position mainly because of the company move to discontinue the loss-making division but more importantly, the valuations are compelling. Total cash and equivalents of around $26m against total liabilities of $7.8m. Mkt cap as of last trade is $19m.

Company is inducted into watch list however, perhaps it is a good impetus for CEO to focus on core business next 24months and avoid expensive mistakes again. Will this be a turnaround case?

As usual, please do your own due diligence. My figures above are just estimates.

(vested)

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16-11-2014, 10:55 PM.
Post: #8
RE: Avi-Tech Electronics
Latest 1Q results show a small profit of 696k from continuing operations. Balance sheet now has 25.6m of cash & equivalents which translates to a net cash of 7.4 cts against market price of 6.3cts. And you get the company building for free.

Even better, company may be able to realise some value from the sales of its liquidated assets in the USA and boss Lim has bought back some 580k shares at 5.9 cts.

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20-11-2014, 06:10 PM.
Post: #9
RE: Avi-Tech Electronics
Thanks for surfacing this counter MOV. I took a look at Avi-Tech and decided it is worthwhile to take a bite of it. I strongly believe that the business had turned around based on the latest financial statements and this is reinforced by the incessant insider buying.

The sale of the US business at a profit and a resumption of dividend payout are catalysts. Best part is the US business which was losing money is now turning profitable! Coupled with a very strong balance sheet and a good discount to NAV, I think at current price it is still very undervalued.

The insiders are still mopping up shares by the day...

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26-11-2014, 11:25 AM.
Post: #10
RE: Avi-Tech Electronics
The insider buying continues. Watch this space and keep a lookout for the upcoming result announcements. Any sign of a sustainable turnaround should cause the share price to rocket in my opinion. I'm guessing also that there may be a resumption of dividend payout which will also spur the stock further.

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