I like the fact that this company has cleared all its impairments for the discontinued businesses. Thus, no overhang.
Despite being in a competitive biz, as at end-1HFY15, AVI-TECH continues to be net cash rich at S$26.1m cash. $0.076 per share = 86% of market cap, and almost nil debt.
Investing is part art,part science/math. In the case of Avi-tech, the high cash level is math/finance. Surprisingly, unlike many high-cash stocks, Avi-tech is chased after by the market to 9.9 cents now. This stock can be a study of investor sentiment and possibly insiders (loosely used) buying. this micro-cap is in a competitive industry, not very profitable, yet the share price has run up strongly. I am not complaining tho. .
Avi-Tech continues to recover, like a ex-cancer patient who has started to run its first 10 km race!
The Group’s 9M15 net profit attributable to shareholders was S$6.3 million, a resounding return to profitability from a loss of S$2.9 million in 9M14, while net profit for 3Q15 was S$1.9 million as compared to a loss of S$0.8 million in 3Q14.
Avi-Tech has even HINTED that it would resume paying a final dividend when it announces its 4Q result in about 3 months time!