Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
InnoTek
19-08-2017, 11:04 AM,
Post: #71
RE: InnoTek
All these talks are based on assumption that mgmt will do share buybacks, realise their investment assets etc. Low PE does not mean anything. Buying shares of a company with assets equivalent to market cap also mean nothing. the reason is because we cannot decide the company direction at all. if they choose not to give anything back we got to respect unless you are WB and hold a significant stake in the company.

Sent from my SM-N9005 using Tapatalk
Using Tapatalk

https://plus.google.com/103947015353426207488
Website Find Reply
19-08-2017, 11:57 AM, (This post was last modified: 21-08-2017, 11:55 AM by kelvesy.)
Post: #72
RE: InnoTek
(19-08-2017, 09:29 AM)lanoitar Wrote:
(18-08-2017, 08:49 PM)kelvesy Wrote: Based on 1H results, InnoTek has 15.816m in "held for trading financial assets" and 31.222m in "cash and short-term deposits. As for debt, it has a finance lease of 61k (both long and short term). This means the net cash position of the company is 46.98mil approximately.

The company has another $19.2m in investment properties. If you add that in, the net cash + investment property is almost equal to the market cap (ie. the EV is almost 0, or the business is free). During the last AGM, the Board has expressed that it is cognizant of this huge non-operating assets. I think this is a huge comfort to minorities holding on.

kelvesy Wrote:I do not rule out the chance when shrewd private equity would come in to acquire them...

Gazelle Capital (Lim Say Hui of Lindeteves Jacoberg, now known as Brook Crompton) did come in. IIRC, they tried to work something out with the Chandaria's a few years ago, but got nowhere.

Don't think you should calculate that because the company needs that when the production picks up and for existing operations. There are immediate corporate actions that management can do to enhance shareholder's value. I hope that the management is reading our posts. Like what "Life is a game" mentioned, it's nothing if they don't do anything. I believe mgmt should allocate capital on per-dollar basis and may the best returns win the right for its usage.

Thanks, I noted Gazelle Capital is still a shareholder. They were comtemplating between July to Oct 2014

(19-08-2017, 09:48 AM)CY09 Wrote: My personal opinion is that Innotek should not have hired an investment bank manager to manage its 15 mil securities. A reason is because it seems the investment manager has not been performing to par.

The second reason is that Innotek can deploy the cash for better uses and that includes doing share buybacks of its own shares or using it as a cash buffer. The fact that you can buy Innotek assets of NAV 55 cents at a price of 35 cents, point to a potential 50% gain. From a business acquisition perspective, you are buying a business which is generating about 8% FCF yearly; much better than putting your 15 mil with an investment banker who is unlikely to provide you 8% returns after fees.

Absolutely! Right now, its equity stands around $124.82mil, assuming we are taking out the "trading of financial assets" 15.816m, we are left with 109mil.

Utilising the 15.816m to purchase back our shares at $0.30 each, it will shrink our outstanding shares available (excluding treasury shares) to be 171.405m. Taking equity of 109mil divided by 171.405m outstanding shares, you will get 0.64cts NAV. As compared to current 55.7cts NAV, it is a boost of 14% as well.

Assume InnoTek's management is capable to turn operations around, buy its own shares on cheap now. When operations turnaround, shares are up, maybe InnoTek can consider to par down some treasury shares to insitutional investors? Starburst, China Sunsine, AEM, all did that. I'd say that is smart use of capital because this shows the mgmt clearly knows how to exploit the situation.

Find Reply
21-08-2017, 04:06 PM,
Post: #73
RE: InnoTek
I rather have the management focus on running the biz efficiently and optimally. This is where the real cash flow will come in and ultimately build shareholder value. The recent qtr showed cash generation is weak. The cash and its investment securities will come in handy when the company needs to expand or invest in production lines if their customers have new programs for them to build. Share buyback is only good if the company has a lot of cash and doesn't need it for their business expansion. I doubt Innotek is at this stage.
But I do agree the investment securities portion return is too pathetic. Probably the investment manager is too risk averse and puts too much of it in bonds?

Find Reply
09-09-2017, 12:14 PM,
Post: #74
RE: InnoTek
A day ago, I exchanged email with the IR of InnoTek.

"The Company is likely to hold an analysts and investors meeting after the 3rd Quarter 2017 results announcement in November and we would include you in the invitation list." This was the reply I got.

I think the willingness of InnoTek's to host an investors meeting means they are conscious about the need to improve their corporate profile among the investing community. I have no doubt that management is doing its best to grow the business, let's just hope the best for the operational side of the company.

Focus on growing cash, receiving money faster and do higher margins business.

Find Reply
12-09-2017, 11:46 PM, (This post was last modified: 13-09-2017, 05:16 PM by kelvesy.)
Post: #75
RE: InnoTek
As a vested shareholder, today's movement was slightly unusual. Spike in volume but no price change. Seems like sellers are aplenty but buyers are not letting up as well. Wonder if there's anything brewing? I still secretly hope that the management ditch its financial assets portfolio and revert back to cash and buy back its shares.

12 Sep: https://imgur.com/a/bPreq
13 Sep: https://imgur.com/a/5CIGQ

Find Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)
Valuebuddies.com | Return to Top | | Lite (Archive) Mode | RSS Syndication | CONTACT US: nas......@valuebuddies.com |