Powermatic Data Systems

[weijian]

Sounded complicated when they proposed it but I think probably if you dont want stock for the sale of the property ( which was to the bosses) then the company would payout cash to you directly (which I think will means for this payout which shareholders like me will choose, there will be no taxation)

Personally its only one property and even though it makes the company look "asset heavy", I think they should just keep it as it is and just do another big dividend payout if they have too much cash or just do share buybacks which will help to pump the price up and make it easier to GO the company in the future.

Company releases more details on why they were not able to proceed. It is a nice problem to have an appreciating asset on your balance sheet with the patience/wisdom to know how to weld it accordingly.

As regulatory clearance on the Cash Alternative under the original structure contemplated could not be obtained (and given that the Cash Alternative was a key component of the Proposed DIS), the Proposed DIS had to be aborted. It had been contemplated then that Dr Chen Mun and Ms Katherine Ang Bee Yan (substantial shareholders and executive directors of the Company) would provide the Cash Alternative.

https://links.sgx.com/FileOpen/RESPONSES...eID=698554

[Dosser]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

[desmondxyz]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

[BlueKelah]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

Yep its a slowly growing cash cow and will be for quitea few years to come, one of the best small caps on the SGX now that they have managed to sort out their business direction towards 5g and partnership with qualcomm. Should get more rerating once they get to midcap status and attract more Fund attention.

-vested top shareholder-

[desmondxyz]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

Yep its a slowly growing cash cow and will be for quitea few years to come, one of the best small caps on the SGX now that they have managed to sort out their business direction towards 5g and partnership with qualcomm. Should get more rerating once they get to midcap status and attract more Fund attention.

-vested top shareholder-

wow, top shareholder....expect to see u in top 20 ?

[BlueKelah]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

Yep its a slowly growing cash cow and will be for quitea few years to come, one of the best small caps on the SGX now that they have managed to sort out their business direction towards 5g and partnership with qualcomm. Should get more rerating once they get to midcap status and attract more Fund attention.

-vested top shareholder-

wow, top shareholder....expect to see u in top 20 ?

expect

[weijian]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

Dividend payout ratio has always been relatively low comparatively (if we exclude the capital reduction in FY20). Something has to change for the BODs to permanently increase it, what could it be?

On another note, stripping out the FV gains in FY22 and losses in FY21, actual FY22 earnings have actually slightly declined (even after we account for the covid-19 grants in FY21). Inventories have ballooned a few folds compared to historical run-rate. I think the more interesting phenomena seen here would be whether what happened at Powermatic Data is a sign of "what is to come for the semiconductor cycle" in the coming future? (ie. how serious is the actual double/future ordering that is driving all the sales boom/supply chain constraints now?)

[BlueKelah]

Results for YE 31/March 2022:

https://links.sgx.com/FileOpen/PDS_FY_Re...eID=718949

Profits increased 10% to 23.38c/share.
Final and Special dividends of 5c per share each, to add to the 5c interim, giving annual total of 15c/share.

This is really a cash cow....after paying out 15cts dividend, Cash still growing.....

Dividend payout ratio has always been relatively low comparatively (if we exclude the capital reduction in FY20). Something has to change for the BODs to permanently increase it, what could it be?

On another note, stripping out the FV gains in FY22 and losses in FY21, actual FY22 earnings have actually slightly declined (even after we account for the covid-19 grants in FY21). Inventories have ballooned a few folds compared to historical run-rate. I think the more interesting phenomena seen here would be whether what happened at Powermatic Data is a sign of "what is to come for the semiconductor cycle" in the coming future? (ie. how serious is the actual double/future ordering that is driving all the sales boom/supply chain constraints now?)

I wouldnt worry too much about inventory, it is likely the usual extra stocking up for parts due to increasing parts costs and supply chain problems which many companies are doing.

So long they are back to making money and asset/cash heavy, they will weather the coming stagflation cycle well. 

If you had bought in like I did when talking about this stock at 80c levels many years ago, u would be getting 15/80=18.75% dividend yield on cost this year   I dont even have to sell and all my stockholdings in this counter are FOC.

my pick this year are Riverstone which I find super undervalued looking into the next 5-10years. It's only 70c+ now and been sold down post big div, based on their latest 1q march quarter results "post covid normalised" revenue/earnings, we can project a PE of around 8, it is way undervalued for a company with such excellent management and solid future growth/revenues. Another excellent cash cow at current sold down prices.

[¯|_(ツ)_/¯]

@BlueKelah Thank you for sharing and I personally benefited from your tips in Powermatic Data Systems.

Based on my trading record, I vested at about 1.30 and sold with 30% gain when this baby zoom up 30% within few month of my purchase.

I could had hold until 2.88 but at that time was thinking of consolidating my counters and decided to sold out this baby. 

---

If I may says, in term of tips (stock picking), you seems to have all the luck and I'm very very grateful that you share them with our valuebuddies.  I am aware of RS and after your reminder, yesterday, I took a look and it seems to be a turn-around play.  Let me take this weekend for a closer look and if nothing go wrong, likely will be buying some soon.

Gratitude!

[BlueKelah]

@BlueKelah Thank you for sharing and I personally benefited from your tips in Powermatic Data Systems.

Based on my trading record, I vested at about 1.30 and sold with 30% gain when this baby zoom up 30% within few month of my purchase.

I could had hold until 2.88 but at that time was thinking of consolidating my counters and decided to sold out this baby. 

---

If I may says, in term of tips (stock picking), you seems to have all the luck and I'm very very grateful that you share them with our valuebuddies.  I am aware of RS and after your reminder, yesterday, I took a look and it seems to be a turn-around play.  Let me take this weekend for a closer look and if nothing go wrong, likely will be buying some soon.

Gratitude!

RS is actually not really a turnaround at all. Business has always been good and they have never made any losses. Just business was boosted crazily during covid years. Now they are back to baseline. Off topic on this thread happy to discuss more on RS thread if you post there. 

But yeah I do have some bad picks from my earlier days chasing value/ "cigarette butt" type companies that had big assets but lacklustre businesses with little scope for growth. 

Powermatic was initially one of those companies, I just got lucky as they pivoted to 5G sector/wave and that was a very good decision by management evident by the good cash flows they been having past few years despite turbulent times. 

Multichem is another gem which I believe will continue to perform ok due to its local asean cybersecurity niche though current prices are probably at fair value, might need a big crash in markets to get in cheaper if you havent already..