Adampak

[sgmystique]

Is it going to be end of the world once again

I just got some Adampak at 24.5 cents. Considering that the HDD industry is still growing at sub 10% rates I see lots of value in Adampak...especially if they are able to maintain their payout rates at 3 cents/ annum...

the whole company is now valued at S$64.5 million...with net cash on hand of about US$16.285 mil (S$20 million based on a rate of US$1=S$1.22) based on the 1Q11 results. If we remove the cash on hand from the market cap the whole company is now available for S$44.5 mil. Considering that the projected earnings for the next few years should be at least US$7 mil (ie S$ 8.5 mil) per year, the market is valuing Adampak at just 5 years of earnings. Is there a very high risk in purchasing Adampak at this price...

Only time will tell...Appreciate inputs from fellow forumers...

[momoeagle]

Please see the research paper link from yeokiwi on HDD vs SSD technology. The key message is clear. There is more room for expansion for magnetic storage than flash. Speed is not the issue but the size. Flash technology has always a problem to go lower than 90nm due to the law of physics (tunneling effects). Unless, semiconductor industry can think a better way to stack the dies or place it in a 3D shape or uses a brand new material like carbon nanotube which by that time would not even be called SSD anyway.

I read about a new material called Graphene. Could it possibly revolutionize the IT industry by making semi-conductors even smaller, like one layer of atoms only? Then Moore's Law would still be obeyed for many years to come.....

(Not Vested)

I didn't see my loud thinking generated so many replies

Clearly, if we talk about wanting huge amounts of storage place, HDD technology is still cheaper. Like what another forumer said, servers still need HDD for a large amount of storage space.

However, technology can change very fast. How long ago was it that we have our floppy disks? 10 years? Now?


But I guess Adampak, being a label producer, can easily switch to producing labels for other devices. I mixed it up with a HDD producer originally.

[dydx]

But I guess Adampak, being a label producer, can easily switch to producing labels for other devices. I mixed it up with a HDD producer originally.

I guess we can say for Adampak, HDD remains the best target custmer segment to make good money for the time being. So the management should simply exploit and maximize this profit opportunity till it lasts. At a cetain point in the future, Adampak may have to divert more efforts to other customer segments.

[sgmystique]

What a day it was...but am very glad that Adampak was one of the very few counters which traded but closed the day unchanged from its previous close

[dydx]

What a day it was...but am very glad that Adampak was one of the very few counters which traded but closed the day unchanged from its previous close

Quite a high volume of a total 875 lots were transacted today. It started off from $0.245 when the market opened in the morning, touched a low of $0.23 at 11:17:49, and recovered in the afternoon before closing at $0.25.

It looks like those who over-reacted to last night's 512-point plunge of the Dow, and those who needed to raise money, have transferred their Adampak shares to many others who are just quite happy to take advantage of the low share price to add to their positions. Unfortunately, this is just the nature of the stock market, where there are always people who choose to react to news and events and bet on short-term price or market movements.

At today's closing price of $0.25, and assuming Adampak pays out a total $0.03/share in dividends for FY11 (same as FY10), investors will get a return/yield of 12% from dividends alone. As the Interim dividend (usually it is paid out in the first week of Sep) of $0.01/share (assumed the same as last FY10) is just round the corner, investors can choose to look upon the Interim dividend as a 'discount' to their purchase price, which means that their actual dividend yield is even higher than 12%!

Quite obviously, Adampak as a business and investment is not bad at all!

[Bibi]

If you look at it's RSI chart it's extremely oversold. Also it's next support level is 23 cents. It might move up abit to 27 cents but whether it goes down or up from there depends on it's coming results and market sentiment.

[bb88]

Anyone knows who are the competitors to Adampak?

Considering that it is "only" labels and diecut parts, what is preventing another company from coming into the industry or taking over Adampak accounts?

RFID labels are great for warehousing, logistics, and inventory operations but I think Adampak does not have major operations for RFID labels. Not sure who's the big player in this area? I used to do a bit of RFID and Alien Technologies seemed to be the dominant player. They are predominantly a RFID technology company and someone must be printing labels embedded with RFID for them?

[honeyclover]

I think Adampak only have minor operations for RFID, to support their existing customers.
Mainly is still diecut & labels for the HDD sector.
Competitors - Zephyr and Brady..etc.

You can find out more from Joe's blog. ( http://joe-ong.blogspot.com/2008/08/anal...e-ltd.html )

My own opinion risk is about the Us dollars...they bill in US dollar ..ya?


Anyway, i'm plan to hold till 2015 then see the business how.

vest @$0.350

[memphisb]

Are you serious? an not a typo?
vested at $0.35 or at $0.25?

It is not just forex risks. There are other business risks such as demand in manufacturing from USA which is not to optimistic at the moment.

[honeyclover]

yup vested@ $0.35 ard 100 lots.+

Brought at quite a high price, bit unfortunate on the timing noone knws S&P' will downgrade. Europe...etc
Now current price around 2008-2009 level.
I'm kind of optimistic abt it.

anyway i 'think' the august result should improve. (guessing from seagate's sales.)

I'm in for the long-run 2015. See after few years, how's the return of this biz, then decide.
No point switching here & there, done e homework.
Now just sit tight, relax and be patience. ^^