AEM holdings

With the recent technical correction on tech stocks, what are your views on AEM holdings and other similar tech stocks like Valutronics? Not vested but planning to hear from some veteran investors on their point of view. Please feel free to share your thoughts!

AEM is cheap still on PE valuation, as CIMB is forecasting about 33 cents EPS.

It is about 7.6 X PE (using current $2.47 share price)

It has a captive client (ie, Intel) which will replace its testhandlers with AEM's over the next couple of years, as well as turn to AEM for consumables.

The upside bonus is M&A. I believe AEM is seeking to make acquisitions using its strong Free Cash Flow. (see Maybank video interview with Loke Wai San, the chairman of AEM).

Joes, it looks like on a reasonable PE of 10x, AEM Holdings should be worth more than S$3.00. Awesome, if it happens. Watch this space

Yup, 2.47 over the week has risen to 2.67 and dropped back to 2.60 just before the weekends. Looking closely.

The institutional funds took up 2,737,800 shares at $2.70 a share from Orion Phoenix on 5 June 2017. When the tech stock sector corrected sharply, AEM was a great buy at $2.10 or so...

Now it's back up to $2.73 ahead of the 2Q results and possibly further profit guidance by AEM.

Well done to those who have continued to hold on to AEM.

2Q results were awesome, and there is more to come:

In our 4Q2016 announcement, we guided that "we expect to deliver at least S$70 million in sales and achieve at least S$6.5 million operating profit before tax for 1H2017". The Group achieved sales of S$104.5 million and profit before tax of S$14.6 million in 1H2017. ....we expect to achieve revenue and operating profit before tax for FY2017 of at least S$200 million and S$24 million respectively.