A journey of thousand miles begins with a single step 千里之行，始于足下。

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Gratitude - wish everyone a great weekend.

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Waking up to another cool morning with birds chirping in the wood...
I wish everyone a relax and happy weekend. 

Enjoy WB:


Increasing, noises in the market had becoming louder and louder. The volatility and uncertainty of the market had also increased the conviction needed by valuebuddies to hold on tight to their beloved shares/scripts.  

Extremely difficult and I'm afraid, the (downward) trends will continue and more and more challenging for our valuebuddies to hold on.

With lots of gratitude, I am really thankful of all the kind sharings/tips given by our valuebuddies.  Thank you very much.

One of our valuebuddies favorite stock Micro-Mechanics Holdings was covered by bloggers recently:
1) 27 Oct 2022 Dr Wealth - Zhi Rong Tan "Singapore Semi-Conductor companies dragged down by US-China Relations" 
drwealth.com/singapore-semiconductor-companies-dragged-down-by-worsening-us-china-relations/

2)  27 Oct 2022 The Smart Investor - Royston Yang "4 Red Flags to Watch During the Upcoming Earning Season"
https://thesmartinvestor.com.sg/4-red-fl...gs-season/

3) 28 Oct 2022 The Edge - Felicia Tan "MMH Report 14.6% lower earnings of $4.2m for 1QFY2023"
https://www.theedgesingapore.com/capital...l-1qfy2023

MMH closed at $2.76 on 28 Oct 20222 (after it announced result in the afternoon @12.15pm
https://links.sgx.com/1.0.0/corporate-an...3e4ed98d62

Gratitude.

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Merry Christmas... Ho Ho Ho.
Watch how a turtle defending from a shark attack and finally made a turn back and launch a counter attack...


Some of our valuebuddies sees the similarity of this short video clip as what happened in the investment world... they being the turtle...fighting off the shark to gain some profit ... eventurally.

I think otherwise.

Investment is a fun-filled and fruitful journey which everyone should enjoy.  If they made a right pick, the reward will come naturally.  If they made a wrong pick, so be it.  At least, they got a seat in the playing field, witnessing once in a lifetime drama played out nicely in front of them.

In any case, with 2022 ending, I'm really exciting to see how 2023 would play out... will it be like what PM Lee mentioned during NDP? 

Ho Ho Ho. Merry Christmas


https://www.straitstimes.com/singapore/c...stive-buzz

Gratitude 

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Good morning valuebuddies,
As usual, waking up from a good night sleep and couldn't help that my heart was filled with gratitude.  Thank you very much.

2022 was a good year and 2023 would be a better year, hopefully.

5DD continue to face selling pressure - not for no reason.  

For one, it's valuation was rather rich.  It was never a cheap stock.  Since I noticed this stock, it's always above it's valuation.  At 2022 closing price of $2.64, it's not cheap at all.

Next, it's dividend payout ratio of 100% (roughly), was rather bold.  Naturally, valuebuddies wonder whether the dividend is sustainable - especially in the long(er) run.  My guess is not - unless 5DD has a crystal ball - which I doubt it had.  If my guess is correct, at certain point in time, the annual dividend would have to drop.  How much? I don't know but it's just a matter of time before this will happen.  At that moment, 5DD share price will drop and that might be a moment to re-invest in 5DD again?

Then, the continuous struggling of MMUS.  The primary condition for MM to buy MMUS was for CEO (Chris) personally taking care of MMUS.  He did and the result was not fantastic.  Strategy wise, also not fantastic.  As of today, MMUS is still losing $$$ and customer base remains primarily in semiconductor industry (as compared to the strategy to leverage MMUS customer base beyond semicon into Laser, Medical and Aerospace).  Other than Chris, his eldest son (Kyle) was working in MMUS since 2018.  When will MMUS become a steady income stream aka generating constant profit for 5DD?

Lastly, sub-10 nm breakthru - which customer? Enough says about the challenges to provide parts and tools for sub-10 nm wafers. MM's vision to become a key supplier in sub-10 nm is a big goal.  Acknowledging that this is very difficult to achieve. The question in my mind is not all the activities and pre-works, the question is always, had we or had we not been supplying parts and tools to sub-10 nm wafer yet?  

More questions remains but at this moment, let's gives Kyle some more time to demonstrate his new role and I wish ex-CFO Chow well in his retirement. 

https://www.financeasia.com/article/micr...ury/172898


Gratitude.

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MMH@258


With CFO and COO retiring, we should expects MMH back to it's root of being a US company.  Kyle would really need to pull weight and ensure MMH continue to develop it's niche in USA market as well as maintaining it's strong position in semi-con tooling business. 

While waiting for its 1H23 results to be announced in 30 Jan, let's celebrate CNY and wish every valuebuddies a peaceful and prosperous new year.


https://www.womensweekly.com.sg/gallery/...-forecast/

Gratitude.

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MMH@257

Q2 result is out and some area to monitor:
1. MMUS seems to be still in the red
2. GP/NP dropped significantly due to largely fixed cost nature of the operation not able to absorb the 18% dropped in revenue
3. Expectation of worsen operating result such as lower revenue, GP/NP
4. Q2 GP @ 45% is below KPI of > 50%

For those who vested, 6 cents div payable on 17 Feb 2023.
https://links.sgx.com/FileOpen/MMH-SGXne...eID=745127

Celebrating Lunar New Year:

https://www.businesstimes.com.sg/interna...ues-during

Gratitude!

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MM@217

XD 2 days ago and MM continue to drop

For those vested, looking forward to a fat check on 17 Feb.

For those not vested, would you consider buying some?

Read latest DBS report for more ideas:

https://www.dbs.com.sg/treasures/aics/te...312023.xml




Gratitude.

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MM @ 2.10

The Smart Investor, Royston Yang wrote on 
"These 4 Stocks’ Share Prices Are Scraping a Year-Low: Are They a Bargain?"

https://thesmartinvestor.com.sg/these-4-...a-bargain/

You might already know that I like to read and follow those stock tips from our valuebuddies... Gratitude.

RY happened to be among top-three valuebuddies that I followed. 

Four stocks were highlighted in this article and the only one stock that RY own is .... no price for guessing correctly ... MM.

Extracted some paragraph for busy valuebuddies:
"MMH’s share price has steadily declined to a low of S$2.10, down nearly 34% in the past year.

The group had reported a downbeat set of earnings for its fiscal 2023’s first half (1H FY2023).

Revenue dipped by 9.6% year on year to S$36.9 million while operating profit fell by 34% year on year to S$8.4 million.

Net profit plunged by 35.5% year on year to S$6.1 million.

Looking ahead, the World Semiconductor Trade Statistics has forecast that the worldwide semiconductor market will dip by 4.1% year on year to US$557 billion this year.

These numbers will have a dampening effect on demand for MMH’s products and services but the industry is known for being cyclical."

---

The same article actually contains another one of my favorite buy strategy - at 52 weeks low.

Let me give a very simple logic (don't laugh).

Suppose there is a stock called AIT which is in my watch list.

IPO price, says is $1 and after IPO the highest point it goes up is $1.30.

Given some point in time, it hit it's 52 week low at 80 cents, I just buy and buy and buy.

So far, this strategy is working fine for me too (in additionally to the follow the guru strategy).

Gratitude!

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MMH@2

A) WeiJian mentioned in ISDN Holding: 
https://valuebuddies.com/thread-6338-pos...#pid167882

Code:

FY19 was also similarly MicroMechanics's last downturn before the latest FY. Both companies prosper and die by the Electronics sword , it seems.

B) ST reported on continuous fall in Singapore Factory activities:


C) The Smart Investor:
https://thesmartinvestor.com.sg/these-4-...a-bargain/

Code:

Looking ahead, the World Semiconductor Trade Statistics has forecast that the worldwide semiconductor market will dip by 4.1% year on year to US$557 billion this year.

These numbers will have a dampening effect on demand for MMH’s products and services but the industry is known for being cyclical.

 
Hold on tight, my dear valuebuddies.
The road will be tough and do hog and keep your powder dry. 

Enjoy thinking out loud:

Gratitude.