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Dutech Holdings
17-03-2018, 01:34 PM, (This post was last modified: 17-03-2018, 01:40 PM by BlueKelah.)
Post: #171
RE: Dutech Holdings
(04-05-2016, 07:54 PM)BlueKelah Wrote: IIRC from my previous research on dutech, visiting their old website, DTMT already has operation and production factory in both germany  and china. It is unlikely that there could be much cost savings for DUTECH.. The failure of this german business in the first place is unlikely due to cost overrun as germans are pretty efficient. More likely it was due to poor sales as European economy is pretty bad overall and they may also have been outcompeted by other larger companies doing the same thing. 

A pertinent question to be asked is why they would wanna sell to DUTECH China based company?? I am sure there are plenty of such firms in Germany and Europe and if DTMT had some competitive techonology or patents and selling so cheap, pretty sure some other firm would have acquired it.

Also to note, I think just last year it was still making losses even after FORMAT supposedly was turned around.

And reading my post last year, given it is in net cash position, has the DEBT level gone up much?

This is some article I found written in Jan this year:
Dutech is an S-chip. Its 4.9x TTM P/E is at a 65% discount to its peer and downstream players averaging at 14.4x. Group CFO resigned in Dec 15, after six years’ service at Dutech, to pursue other interests and opportunities (company disclosure). In Jan 16, group CEO Dr Liu Jiayan sold 650k shares that were directly registered under his name via market transactions, with an average trading price of S$0.265. Dr Liu remains a controlling shareholder of Dutech, with a 43% stake held through his private firm.

LOl why would Dr. Liu sell such small amount when he knows the company is doing well and giving out good dividend soon? The dividends should put enough $$ for him to use if he needed some spare cash. Especially when its just before the share price boom to 38c now? I wonder who is the fellow who benefit and the real motivation for this share sale.

Group CFO run road. Company can give any sort of reason. but its a suspicious point to consider.

And thinking about it, if their base business was really so profitable, why bother to acquire some GERMAN company?? Other than for the purpose of SEXY story telling?? And maybe allow for creative accounting to take place? I remember previously there was mention of their gaming machine business going to boom as well. Maybe they will aim to do an IPO for their subsidiary in the future, that would be a really sexy story ala sino grandness style.

looks like another speculative s-chip, good for the ride but if you dun get off in time then bye bye..

caveat emptor...

P.S CF see that you finally got convinced on the M&A story since we last discussed this stock in 2014 and vested at low prices, are you going to profit take soon or wait until it becomes like Penguin and drop back to 25cent level? Tongue


Share price is now demonstrating what I have been trying to say 2 years ago. And Dutech goes on to acquire more and more "loss making" companies. Debt is increasing(whilst sitting on a big load of cash), R&D expensese also increasing 66% YoY. And what looks to fast become a sunset industry.

Can Dutech turnaround and make Metric profitable? Or are all the aquisitions actually loss making?
Virtual currencies are worth virtually nothing.

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