Fischer Tech

[CY09]

Fischer Tech on 10 Dec had announced a disposal of its 38% interest in an associate for a cash consideration of 3.5Mil. With the free cash flow generative ability of about 12Mil and this 3.5Mil cash, Fischer is capable of clearing all its debts this year. Alternatively, if the mgmt is kind enough, a 1 cent special dividend can be declared to distribute the cash proceeds of the sale of stake

[dydx]

Fischer Tech on 10 Dec had announced a disposal of its 38% interest in an associate for a cash consideration of 3.5Mil. With the free cash flow generative ability of about 12Mil and this 3.5Mil cash, Fischer is capable of clearing all its debts this year. Alternatively, if the mgmt is kind enough, a 1 cent special dividend can be declared to distribute the cash proceeds of the sale of stake

Fisher Tech has been in net-cash position for quite sometime; in fact, based on the latest 30Sep14 Group B/S…..
http://infopub.sgx.com/FileOpen/FT_Annou...eID=324770
, net cash reserve stood at $14.6m, equivalent to some $0.053/share (based on the 273.4m outstanding issued shares). Adding the $3.5m proceeds from the announced sale of associate, and another approx. $5.0m in FCF in 2H-FY15, net cash reserve as at 31Mar15 would come to some $23.1m, equivalent to some $0.084/share.

Now that CEO Peter Tan holds a high 57.06% stake after his unsuccessful GO to privatise the company last year, there are even more reasons that Fisher Tech may be inclined to pay out much higher dividends going forward, partly to allow Tan to reduce/repay the bank borrowings he has taken on to fund the GO exercise.

[BlueKelah]

He could sell to pay the loans??

-- via Xperia Z1 with tapatalk

[brattzz]

why sell an undervalue stock? he can push to issue dividends to unlock the value!
I'll definitely NOT sell undervalue stock, but BUY BUY BUY!!

[bear]

All these months VB forumers have noted that Fischer Tech,together with another plastic molder Memtech International,have managed to turn their businesses around in recent years,due to their shift in emphasis from lower profit margin area like keypad manufacturing into the more lucrative automotive parts businesses,with a focus in China automotive industry.

Being vested myself due to the value proposition of Fischer Tech I was however concerned that the slowdown in China's growth will affect the automobile sales,which in turn affects the sales volume and margin of the automotive plastics parts supplier like Memtech International and Fischer Tech.

http://www.wsj.com/articles/chinas-autom...1421046195

Nonetheless,I will continue to remain vested because the CEO himself knows the true and reasonable value of the business,which is way above S$0.172/share,and that's why he desire to take the business private.

Meanwhile,I will take note of the profit attributable to the automotive sector when the Annual Report is released,and with subsequent quarters financial results.

Another question to the VB forumers who have been keeping track of both Fischer Tech and Memtech International(I have only taken note of this potential gem recently),if given a bullet now,which of these two companies will you buy,and why?

[CY09]

Fischer, stronger free cash flow generating ability and lower price earnings ratio

<vested in Fischer, not memtech>

[Dividend Hermit]

Another question to the VB forumers who have been keeping track of both Fischer Tech and Memtech International(I have only taken note of this potential gem recently),if given a bullet now,which of these two companies will you buy,and why?

I like both companies because they satisfy my investment criteria of having low debt, low PE, decent dividends, being a net-net stock and relatively under-appreciated.

I have greater percentage in Memtech mainly due to higher dividends (lower opportunity cost while waiting for value to unlock).

(Vested in Fischer and Memtech in 2:3 ratio)

[dydx]

This afternoon, Fischer has hit a new recent high of $0.181. Looking at the queue, there are so many more buyers compared to sellers.

I wonder if there is a chance that Fischer would hit its previous 5-year high of $0.205 achieved on 19Apr2010 soon? With oil prices that low, I guess soon or later prices of plastic resins - the key raw material for Fischer's plastic components manufacturing business - will fall by a big margin, and this will translate to quite substantial cost savings to Fischer and other plastic components manufacturers, which hopefully would lead to a few years of good profitability for them. The recent rise of the USD - commonly used in the contract manufacturing industry - should be a boon for Fischer and other plastic components manufacturers as well.

[bear]

Another question to the VB forumers who have been keeping track of both Fischer Tech and Memtech International(I have only taken note of this potential gem recently),if given a bullet now,which of these two companies will you buy,and why?

I like both companies because they satisfy my investment criteria of having low debt, low PE, decent dividends, being a net-net stock and relatively under-appreciated.

I have greater percentage in Memtech mainly due to higher dividends (lower opportunity cost while waiting for value to unlock).

(Vested in Fischer and Memtech in 2:3 ratio)

Hi Dividend Hermit

Congratulations! I guess your investing criteria of vesting in low PE,low or zero debt,net-net stock with low popularity have served you well as these two plastics moulders have been enjoying a decent ride for the past two months.

(vested)

[Dividend Hermit]

Another question to the VB forumers who have been keeping track of both Fischer Tech and Memtech International(I have only taken note of this potential gem recently),if given a bullet now,which of these two companies will you buy,and why?

I like both companies because they satisfy my investment criteria of having low debt, low PE, decent dividends, being a net-net stock and relatively under-appreciated.

I have greater percentage in Memtech mainly due to higher dividends (lower opportunity cost while waiting for value to unlock).

(Vested in Fischer and Memtech in 2:3 ratio)

Hi Dividend Hermit

Congratulations! I guess your investing criteria of vesting in low PE,low or zero debt,net-net stock with low popularity have served you well as these two plastics moulders have been enjoying a decent ride for the past two months.

(vested)

Thanks man! It is due to VB forum that I noticed these 2 ulu companies and decided to investigate futher