Chemical Industries (51 c, cheap enough?)

www.nextinsight.net/index.php/story-arch...rom-its-long-slumber

After reading Mano Sabnani's article (URL above), I was intrigued enough to delve more into this company as it seems to be an overlooked value stock from the old days.

1. The free cash flow is striking --> The company enjoyed positive net operating cashflow of $15 million a year in fy 14 and fy15. Capex was minimal but... there was debt to pare down.
As a result, cash level increased by around $7 m a year. Now stands at about $27 million. The debt stands at about $30m, so the company is not exactly in a net cash position.

2. The company owns two properties in Upper Circular Rd & Carpenter Rd -- these were revalued at $41 million. (They delivered rental income of about $1.3 million a year. )

These assets already more than cover the market cap of the company. So. the rest of the business which generates $15 million a year in operating cashflow is free!

Chemical Industries' office at 3 Jln Samulun is also where the AGM is usually held. Only the most interested shareholders would go all the way there.