Baker Tech

[artreal]

....
Any VB has a view if Baker is undervalued now?
I think interest has cooled big time since the special dividend payout.

At current price of 28 cent, total cash as I remembered is about 22 cent.
So the premium paid for current business is about 6 cents.
EPS for that business is about 0.8 cent, after excluding one-off gain.
Doesn't look attractive.

Price can change if new positive investment is made with the cash.
Any one can tell us more about management? Their ability to do deals?
From PPL and Discovery Offshore, they seems to be good in buy/sell business?

[FatBoi]

By ur calculations, PE would be around 7.5 (6 cents divide by 0.8 cents)? That's not too bad isn't it?

The huge cash levels caught my eye too.
Zero gearing.
Profits dropped, order book trending lower, but business profitable.
If can maintain S$0.015 dividends, it's around 4-5% depending on entry price.

Admittedly I m not familiar with the business or management to comment on the last part.

[Greenrookie]

By ur calculations, PE would be around 7.5 (6 cents divide by 0.8 cents)? That's not too bad isn't it?

The huge cash levels caught my eye too.
Zero gearing.
Profits dropped, order book trending lower, but business profitable.
If can maintain S$0.015 dividends, it's around 4-5% depending on entry price.

Admittedly I m not familiar with the business or management to comment on the last part.

Look interesting. Should not have problem sustaining laš year 1.5 cent dividend, but the order book is only 33 million, and has been falling for many quarters Liao. How long has it been since they last won an order ? Order book will be dried up in a year, so if really no orders, it might start bleeding cash...

There is really no free lunch in investing.

[valuebuddies]

Bump into this counter recently, valuation seems cheap, but results and orders trending down, prospect doesn't look good even though with huge cash reserve. Anyone knows what is the problems that the management failed to secure new contracts?

[opmi]

I thot Baker valuation comes mainly from PPL stake??

[camelking]

Used to..but the deal was completed after victory at the courts.

Now, it is sitting on lot of cash with not much order book as mentioned rightly by valuebuddies.

So, i guess it is more like asset play (cash) with opportunities for "exciting and value adding" M&A.....

vested

[valuebuddies]

I could see that the orders from China has reduced significantly, thought working with the Chinese is easy as long as give some under table money. Anyway this is a very good risk/reward play, the cash reseve already 22c while the traded price is only 27c. For me, I would prefer to see more orders first prior to jumping in.

[desmondxyz]

I could see that the orders from China has reduced significantly, thought working with the Chinese is easy as long as give some under table money. Anyway this is a very good risk/reward play, the cash reseve already 22c while the traded price is only 27c. For me, I would prefer to see more orders first prior to jumping in.

The Group foresees its operating environment to remain competitive and challenging for the next 12 months. However, the Group maintains its optimism on the long term fundamentals of the oil and gas industry. The Group’s net order book had increased to US$55 million as at 30 September 2013, and these orders are expected to be completed within the next 12 to 18 months. The Group is also continuing to explore external opportunities to provide additional avenues for growth.

“Our recent efforts to focus on our core subsidiary are starting to pay off, and we have seen a reversal in
the decline of our net order book this quarter. However, we remain mindful of the need to develop
additional revenue streams for the Group. To that end, we are still evaluating opportunities to deploy our
capital, in order to enhance returns for shareholders.”
- Chairman, Mr. Lim Ho Seng (林穆升)

[bpequity]

Is this still a value stock with stock dilution though it is cheap?


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[valuebuddies]

Is this still a value stock with stock dilution though it is cheap?


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Cash 23c, price 26c, with current order books that able to last 12-18 months, I think it is still a value play.