ISDN

In a weak market today, ISDN can still cheong up 3 cents, which is abt 10%, means only 1 thing. The 2Q results must be solid.

Running out of steam. Not unexpected. The BB needs to let the stock correct as people take profit. When the short-termists are gone, the road up is a lot easier. If that is the case, the question then is what is so good about ISDN? Anyone can help shed light on this biz>?

ISDN now at 32.5 cents, recovering from correction. Not unexpected hor? But so far, what is the fundamental cheong story? anyone knows? Can share?

Big profit jump in 1H, and ISDN expects strong growth in 2H.
All in, stock is 27.5 cents trading at 5-6X current year expected earnings.

Fairly cheap.

Technically, the stock is oversold, having corrected from 34 cents to 27.5 cents now, with the RSI at low low point.

ISDN caught my eye when I read The Edge.

Its net profit for 2010 was S$8.3 m. Its core business has something to do with motion controls for robots & industrial equipment.

The Edge reported that ISN is going into 2 new business segments. The profit expectations look very big to me. Can they be a booster to the company’s profits? Is ISDN set to become a multi-bagger stock?

1.  High-tech farming. At least 10 farms in China & Malaysia in 2 years time.
Cost of setting up = $400,000.

Profit  = $300,000 per farm.  10 farms = $3 million.

2. Coal mining. Took a 51% stake in Indon company. Guaranteed 10% investment return for the USD2.8 million that ISDN will inject into a project.

“The board thinks that the business will be so significant that it will take over the motion control business,” said ISDN’s md.

Net profit will be at least 100% higher in time to come?

PE now is 3. 6X based on weighted av capital, and 5.3 fully diluted taking into account rights issue.

from 15.5 cents jumped to 21 cents! in just 3 days, on high volume.
Why?