Nam Lee Pressed Metal

[dydx]

Seems like some investors have finally started taking note of the steadily improving performance and the growing cash hoard at Nam Lee since the last 6 quarters. Prices increased today with a decent jump in volumes. Hope this is just the beginning of a nice rerating of this counter!

As at 30Jun18 and based on the 3Q result.....
http://infopub.sgx.com/FileOpen/Nam%20Le...eID=417197

Nam Lee had a net cash reserve (inclusive of the $6.1m in held-to-maturity investments, i.e. bonds) of $45.1m, amounting to $0.187/share. Since Nam Lee's $25.2m trade receivables (a near-cash item) balance is conservatively and substantially financed by its own equity, if we impute an equivalent 50% of that balance as an additional net cash item, Nam Lee would have an even higher adjusted net cash reserve of $57.7m, amounting to $0.239/share.

Cash flow wise, in the first 3Qs, Nam Lee generated approx. $9.8m (on an aftertax basis) in net cash from operations. Annualising this amount, we get approx. $13.1m, amounting to $0.054/share a year.

Just based the above, Nam Lee is actually in a strong position to pay out a lot more dividends in this FY16 (ending 30Sep16) and going forward, compared to the $0.025/share paid out in last FY15. Also, since the new factories and additional production capacity in Malaysia have already been substantially built up in the last 2 FYs, going forward Nam Lee can no longer use this same reason to conserve more cash in its B/S.

[TUBInvesting]

just wrote another piece of the Dividend Series based on Nam Lee Pressed Metal Industries Ltd.

The stock has already been "discovered" as a value stock and the recent 1 year price rise has resulted in it failing my checklist/scorecard.

To achieve a 5% dividend yield, one should only enter at share price of $0.295.

For those already holding the stock, especially 1 or 2 years back, I congratulate you on finding a gem. For those that are intending to enter into this stock, please wait. After all, patience is a virtue.

http://tubinvesting.blogspot.sg/2016/09/...essed.html

<Not Vested>

http://tubinvesting.blogspot.sg/

[BlueKelah]

just wrote another piece of the Dividend Series based on Nam Lee Pressed Metal Industries Ltd.

The stock has already been "discovered" as a value stock and the recent 1 year price rise has resulted in it failing my checklist/scorecard.

To achieve a 5% dividend yield, one should only enter at share price of $0.295.

For those already holding the stock, especially 1 or 2 years back, I congratulate you on finding a gem. For those that are intending to enter into this stock, please wait. After all, patience is a virtue.

http://tubinvesting.blogspot.sg/2016/09/...essed.html

<Not Vested>

http://tubinvesting.blogspot.sg/

Namlee is an old company on sgx many decades and a known stock to many investors on SGX. It's value has been covered in many blogs and featured on nextinsight as well before. So it has never really been undiscovered, probably just insignificant to many.  I also have blog post on it LOL...
http://thebluefund.blogspot.com.au/2015/...n-can.html

However the recent price rise is very likely due to improving earnings, div increase and aluminium price which is the main metal in namlees inventory. NAV is 52c so there is still some upside to go if it really get goreng pisang..

https://www.quandl.com/collections/markets/aluminium

With the big unexpected order last year from Maersk for new more energy efficient aluminium containers commissioned to Carrier last year, business on Carrier container side has been pretty good which benefit namlee. But construction side was not so rosy.

Pleasantly surprised that there has been some upward price action recently, however its on very small volume of a couple hundred shares only every day, looks more like someone slowly collecting it up rather than player coming in to push. 

Wait for the analyst report and volume jump to a few thousand lots then we talking "discovered"

-v (but less than Manu the man)-

[TUBInvesting]

just wrote another piece of the Dividend Series based on Nam Lee Pressed Metal Industries Ltd.

The stock has already been "discovered" as a value stock and the recent 1 year price rise has resulted in it failing my checklist/scorecard.

To achieve a 5% dividend yield, one should only enter at share price of $0.295.

For those already holding the stock, especially 1 or 2 years back, I congratulate you on finding a gem. For those that are intending to enter into this stock, please wait. After all, patience is a virtue.

http://tubinvesting.blogspot.sg/2016/09/...essed.html

<Not Vested>

http://tubinvesting.blogspot.sg/

Namlee is an old company on sgx many decades and a known stock to many investors on SGX. It's value has been covered in many blogs and featured on nextinsight as well before. So it has never really been undiscovered, probably just insignificant to many.  I also have blog post on it LOL...
http://thebluefund.blogspot.com.au/2015/...n-can.html

However the recent price rise is very likely due to improving earnings, div increase and aluminium price which is the main metal in namlees inventory. NAV is 52c so there is still some upside to go if it really get goreng pisang..

https://www.quandl.com/collections/markets/aluminium

With the big unexpected order last year from Maersk for new more energy efficient aluminium containers commissioned to Carrier last year, business on Carrier container side has been pretty good which benefit namlee. But construction side was not so rosy.

Pleasantly surprised that there has been some upward price action recently, however its on very small volume of a couple hundred shares only every day, looks more like someone slowly collecting it up rather than player coming in to push. 

Wait for the analyst report and volume jump to a few thousand lots then we talking "discovered"

-v  (but less than Manu the man)-

Thanks for the more insights on the business end.

I believe that the recent rise is also pro-up by the increase in dividend.

Hmm... from your view, most probably the funds have not invested in Nam Lee yet.

Mostly probably will need to wait a while more then.

<Not Vested>

http://tubinvesting.blogspot.sg/

[BlueKelah]

yah if big fund come in they would very quickly drive up the price and volume. Namlee currently even with higher price is only a 88mio market small cap.

there have been 2 gap up this year from 30c to 33c and now to 36c level. It just happen with slightly increased volume for couple days then no more volume. So my impression some specific person is buying up at the bid prices.

anyways hope business holds up this year and someone from nextinsight come and goreng to 52cent  so I can unload lol....

-v-

[BlueKelah]

Looks like a small private value fund has come in, share price continue to appreciate daily on only slightly higher volume.

Hopefully this slowpoke can reach 50-60 cent level it did a decade ago.


- v -

[Jack EL]

IMHO, it will not be slow looking at today's movement unless it falls back to 37c. Should be hearing some news soon if it maintain above 38.5c today. Hope Christmas come early this year...

[TUBInvesting]

in fact there is an analyst report just today or yesterday on this stock.

Maybe the time has come AGAIN...

<Not Vested>

http://tubinvesting.blogspot.sg/

[ianphoon]

in fact there is an analyst report just today or yesterday on this stock.

Maybe the time has come AGAIN...

<Not Vested>

http://tubinvesting.blogspot.sg/

Buying still seems to be happening at 39c with more than a hundred thousand shares on queue at 38.5.
I entered at 28c
Was wondering at what price would it seem valued, at nav? Dividend of 2.5c, or perhaps 3c might be possible judging from its eps n previous payout records.

[Jack EL]

in fact there is an analyst report just today or yesterday on this stock.

Maybe the time has come AGAIN...

<Not Vested>

http://tubinvesting.blogspot.sg/

Hi do you have the link to the report? Thanks