Why I like Excelpoint (2)

My first post on this topic was on 13 feb 2013 in this forum. Since then the stock had been trading within a narrow band of 8.8 cts to 10.4 cts.

It's a thinly traded stock with not much interest in the investing community. This is not a stock for punters or those who take a short term view.

In this posting I wish to recap the reasons why I like this stock :

1) excellent dividend yield .. based on today's price of 9.5 cts the yield is 8.5%. Hard to fine another stock w this level of yield.

2) improving top n bottom line.

Revenue for year 2010, 2011 n 2012 are S$620mil, S$612mil and S$713mil. Revenue at 3rd quarter 2013 is S$612mil which is equal to the whole of year 2011.

Profits for year 2010, 2011 n 2012 are S$3.2mil, S$5.9mil and S$6.3mil. Profits for 9 months of 2013 is S$5.1

3) Meaningful revenue ... company generates revenue of above S$600mil for year 2010 n 2011 and above S$700mil for year 2012 n 2013 (most likely). There are a lot of intangible value in this high revenue and there are not many listed companies w this level of revenue.

4) price below nav ... current nav 12.3cts against current price of 9.5 cts.

5) undemanding pe ratio .. current pe is 7.77 and the forward pe is expected to be around 6.2.

6) management is bullish about the business prospect in China. They expect growth from India n South East Asia though not of the same level as China. They are cautious about USA.

7) it's a Singapore company. IPO on 7 Jan 2004 at 25.4 cts.

Summary :

The main reasons why i like Excelpoint are it's high dividend yield, it's improving top n bottom lines and low risk as long as the current story hold.

Just to share w you my earlier posting (12 apr '13)in another forum .. ShareJunction. The posting was a response to comments on my posting on Excelpoint. I think the points raised are still relevant today. Here goes >>>

AEM was traded between 1.0cts to 5.5cts from 2009 to 2011. Share price started to move up from 2012 n reached a peak of 11.0cts.

I had a position at 2.2cts n had sold out at close to 4.0cts.

This counter (AEM) is quiet strongly recommended by one institution (?) The company reported a loss of S$1.4 mil due mainly to a sales rebate provision of S$2.6 mil, otherwise it should show a profit of S$1.2 mil. Assuming a profit of S$1.2mil the pe would be around 33 times.

The company is capitialised at S$40.4 mil on a price of 9.1cts. For it to reach a pe of 4 times it has to show a profit of S$10.0mil. which is more than 8 times current earnings. So the question is .. can the company make a profit of S$10.0mil? (Note : I do not normally pay
more than 4 times earning for most company except for perceive growth company)

Having said that, there are many positives about the company .. 1. good cashflow, 2. decent cash backing per share, 3.management seems optimistic about the business, 4. semiconductor products shows signs of improvement 5. alot of activities are going on in the company .. pls
read their latest press release. 6. lower financial cost. If all these can be translated into improving top n bottom line this company could become a 'growth 'company which normally enjoys a higher valuation.



Personally i will put my money here as i deem it 'not cheap'. If the price drop further I may consider taking a position.

My choice is still Excelpoint as it has a 3 years of continuos improvement in top n bottom line. It shows quite clearly that there must be something right about the company. If they are able to persist along the same trend there could be a run on the company. Much will depend on the result of the next 2 reporting quarters. Further, the company has been generous in their dividend n has declared dividend of 0.8cts for 2 continuos year giving a yield of close to 10%. I am heavily vested here and am waiting for their next 2 reporting quarters to confirm/reject my current decisions.

Hope above sharing is helpful.

Regards n all the best !!!

josephyeo wrote: My first post on this topic was on 13 feb 2013 in this forum. Since then the stock had been trading within a narrow band of 8.8 cts to 10.4 cts.

It's a thinly traded stock with not much interest in the investing community. This is not a stock for punters or those who take a short term view.

In this posting I wish to recap the reasons why I like this stock :

1) excellent dividend yield .. based on today's price of 9.5 cts the yield is 8.5%. Hard to fine another stock w this level of yield.

2) improving top n bottom line.

Revenue for year 2010, 2011 n 2012 are S$620mil, S$612mil and S$713mil. Revenue at 3rd quarter 2013 is S$612mil which is equal to the whole of year 2011.

Profits for year 2010, 2011 n 2012 are S$3.2mil, S$5.9mil and S$6.3mil. Profits for 9 months of 2013 is S$5.1

3) Meaningful revenue ... company generates revenue of above S$600mil for year 2010 n 2011 and above S$700mil for year 2012 n 2013 (most likely). There are a lot of intangible value in this high revenue and there are not many listed companies w this level of revenue.

4) price below nav ... current nav 12.3cts against current price of 9.5 cts.

5) undemanding pe ratio .. current pe is 7.77 and the forward pe is expected to be around 6.2.

6) management is bullish about the business prospect in China. They expect growth from India n South East Asia though not of the same level as China. They are cautious about USA.

7) it's a Singapore company. IPO on 7 Jan 2004 at 25.4 cts.

Summary :

The main reasons why i like Excelpoint are it's high dividend yield, it's improving top n bottom lines and low risk as long as the current story hold.

Below is a post by me in ShareJunction on 10 Apr '13. Some of the points mentioned are still relevant today and I thought I should share with you. Again it was a response to my posting on Excelpoint. Here goes >>>


For this type of stock u need patience, faith n believe.

Fyi info, i had quite a number of pleasant experience

in this class of stocks. I was in Juken when it was

traded around 4.5cts, in ISDN when it was 11.2 cts, in

Foreland at 3.3 cts, in SMB at 22.5 cts, Swing Media at

8.7 cts, Kian Ann at 21cts. and a few more. At the

point of entry almost all the stocks were very thinly

traded. There were days when buyer looks at sellers and

vice versa and nothing get traded. It was waiting,

waiting, waiting n finally the day came .. Kian Ann, SMB,

Juken were taken private or taken over Foreland shot up

to 5 cts plus and Swing Media went all the way to 18.2

cts.



In all these counters the trends were more all less the

same but in varying degree .. management was bullish,

bottomline was improving, a fair dividend declared,

balance sheet was good (except for 1), and trading

below nav. If patience n faith were not there, one will

never take up these type of counters and of course will

have missed the profits too.



Just sharing and hope all will benefit from the different

views expressed. To me this is the strategy i adopt and

it has served me well. Used to do some punting and

realised i was not good at it but the current way of

investing seem to serve me better.


All the best to all who are here!!!

I prefer yr other recommendation, GLOBAL INVACOM. Thank you!

www.nextinsight.net/index.php/forum/3-sg...nvacom?start=6#17088

2nd quarter result out today. Profits up by 24%.

Below is the management comment fyi :

Quote.

We are optimistic about our prospects in the third quarter as demand starts to pick up across all markets.
Factors include the deployment of the 4G in China, the launch of new smart phones and tablets, the
Chinese government’s economic stimulus, among which include credit easing and infrastructure
spending and the high season for our EMS customers in the ASEAN markets. Barring unforeseen
circumstances, the Group expects that it will continue to operate profitably in the forthcoming quarter.

Unquote