MIDAS HOLDINGS

There are 2 analysts challenging each other -- one says Midas will be fine from 2H onwards, the other hates the stock.

The latter is from Kim Eng and you can read the intense dislike in the choice of words:



How much oxygen left? Maintain Hold with TP SGD0.32

 MIDAS SP | Mkt Cap USD289.8m | ADTV USD1.9m

   Ø   Given  its recent FY3/12 performance, we believe there is no longer
   any  earnings visibility, given that orderbook delivery schedule is now
   arbitrary  at  best. A more useful analysis would be Midas’s ability to
   stay solvent.

   Ø   Even  in  such  a slowdown, we believe Midas can achieve marginally
   positive  operating  cash  flow. The cash outflow burden however, comes
   from its capex plans for its 2nd plant in Luoyang. We conclude its cash
   position should tide Midas till 2013 easily.

   Ø  To reflect renewed concerns on the robustness of Midas’s book value,
   we take a 30% discount from its fixed assets as well as recievables and
   inventory. This derives a TP of SGD0.32 and we maintain HOLD.
[hr]
[viviene 17-05-2012]:

25 cents? Maybe yes, maybe no.

DBS Vickers has issued a buy call already, expecting a recovery in 2H onwards.
Always darkest before dawn
[hr]

Midas strong at 30.5 cents today. It shows that Kim Eng's target of 32 cents is too pessimistic. Under current market conditions, stock prices tend to trade at a big discount to analysts target price. Midas will trend towards 35 cents, which is at a big discount still to DBS Vickers' 42 cents. Just my 2 cents worth!

continue to accumulate into this undervalued gem

 
Midas Holdings Limited (麦达斯控股有限公司) ("Midas" or the "Company", together with its subsidiaries, the "Group"; SGX-ST stock code: 5EN; SEHK stock code: 1021) is pleased to announce that its subsidiary, Jilin Midas Aluminium Industries Co., Ltd ("Jilin Midas") has entered into a new master agreement with Siemens Aktiengesellschaft, Berlin und München, Sector lnfrastructure & Cities, Division Rail Systems ("Siemens").
Under the terms of the renewed agreement, Siemens will continue to engage Jilin Midas as a preferred supplier of aluminum profiles, with the purpose of achieving standardisation and cross-project bundling in the procurement of aluminum extrusion products for railway car bodies, welding, machining and other mechanical treatment of such profiles.
The master agreement also sets out the contractual framework of future contracts to be signed by the two parties, hence, shortening the individual contract negotiation process for all future deals between Jilin Midas and Siemens.
The master agreement is applicable to all contracts to be entered into in future between Jilin Midas and Siemens. Any other Siemen’s Group and Divisions, or any national and international subsidiary companies shall be entitled to conclude individual contracts under the terms of the master agreement.

 
The master agreement is applicable to all contracts to be entered into in future between Jilin Midas and Siemens. Any other Siemen’s Group and Divisions, or any national and international subsidiary companies shall be entitled to conclude individual contracts under the terms of the master agreement.

DOW plunged -260 last thurs , but MIDAS not affected at all . closed flat . too undervlaued and hit bottom already .