Spindex Industries - 5% Yield, P/E 7, 40% discount to NTA

I recently saw this under-valued stock called Spindex, which is under-valued. The dividend track record for Spindex is: 2007: 1.4 cents per share 2008: 1.5 cents 2009: 1.4 cents Spindex has 18 cents cash per share and little debt. Any comments or discussion appreciated. Share price now is 28 cents.

Spindex is a well-run company favoured by the audit community but it hardly moves. It is good for a yield play only.

Spindex’s 1H10 results are just out: info.sgx.com/webcoranncatth.nsf/VwAttach...2010.pdf?openelement Revenue increased 1% year-on-year and 71% compared to 2H09. Net profit increase 10% year-on-year and 49% compared to 2H09. Net cash per share increased from $0.180 to $0.186 even after paying $0.014 per share in dividend for FY09 Trailing PE is 5.6 and annualized PE is 4.7 Net tangible asset is now $0.4665 per share Share price is just $0.235 (50% discount to NTA)

WHY company is UNable to RE-INVEST CASH and also NOT Distributing CASH? :silly: Earnings per share is probably low ? Returns on Assets is probably low ? Gross Margin is probably low ? Fixed Overhead us probably HIGH ? Net Margin is probably low ? Dividend Yield is NOT that attractive Relatively ? Share Price appreciation is NOT realisable ? In terms of Yield, TeleCHOICE is one of the BEST CHOICES. starbugs wrote:

Spindex’s 1H10 results are just out: info.sgx.com/webcoranncatth.nsf/VwAttach...2010.pdf?openelement Revenue increased 1% year-on-year and 71% compared to 2H09. Net profit increase 10% year-on-year and 49% compared to 2H09. Net cash per share increased from $0.180 to $0.186 even after paying $0.014 per share in dividend for FY09 Trailing PE is 5.6 and annualized PE is 4.7 Net tangible asset is now $0.4665 per share Share price is just $0.235 (50% discount to NTA)

This company is one of those low profile low liquidity counters, a bit like Techcomp. It has a very similar business model to Amtek Engineering, which was taken private about 3 years ago. In terms of gross/net profit margin, ROA, ROE, FCF, EPS and dividend yield, Spindex compares very well (if not better) compared to its listed peers like FischerTech, Innovalues and Miyoshi. I would encourage you to look at Spindex\'s past financial results to form your own opinion.