In 2009, the full-year result was announced on May 28, so we can expect the same around end-May this year. The 1H result (ending Sept 09) was $1 m in profit. If they make it $2 m for the full year, the PE would be something like 17X. Doesnt look attractive at all, unless you are expecting some major contribution from their new products, such as the system that detects foreign objects on airport runways. I think these are still new products which have yet to achieve meaningful sales/customers. Or maybe I am wrong? Anyone knows????
Why in the world would any sensible investor buy this stock? The market cap is too small to be on the radar screen of funds and retail investors who took their IPO have lost their pants. I just went thru their annual reports and was shocked at the renumeration of the executive directors. Blur!
Stratech has just reported its full-yr results tonight. Yikes! in 2H they made only $83K. What a disappointment, after making $1.086 m in 1H (which wasnt especially fantastic to begin with). At $1.1 m net profit, the EPS is 0.13 c, which gives a PE of about 30X. Sad story of a company that has good technology and brains, but cannot easily sell it for good profit to enough customers to become an exciting investment.
Stratech has just completed 2 fund raising exercises -- a rights issue and placement of new shares. Not surprising as this business has been suffering losses for many years.
1H2012 lost about S$3 million, about the same as in 1H2011.
Just wonder why got people want to take up the placement shares.
