According to SGX, at IPO in 2007: S$21.7m was raised.
According to FJZY's reports, at 30 Jun 2013: approx S$83.6m are in cash balances.
In FJZY's annual reports, we can also find that the cash balances have been growing year after year.
Therefore, most of the cash is generated from FJZY's business.
However, HL Tiong is accurate in his assessment that FJZY has not demonstrated the ability to use its cash assets for further growth. This is consistent with my target share price (below NAV) as the management is destroying value by not properly deploying its assets.
That said, every company has a price. As HL Tiong mentioned, 'A poor business can be a good investment. This occurs when it is grossly underpriced'. I believe this is the case with FJZY.
Last edit: 10 years 11 months ago by wonghw12. Reason: Clearer explanations
I don't know the company and have never analysed the numbers, but I did a similar analysis on Eratat and would have sworn it's OK. But then it went down and so did my investment! No offence, but be careful. I'm too sore to invest into another S-chip for the time being.
It looks like this is another Eratat in the making.
For s-chips, the more the company claims that it has loads of cash in the bank, or the lower the PE, and generally the more undervalued it appears, the further I want to be from it.
There are just too many SME s-chip that cook their books that you simply cannot rely on their financial figures.
Guys, please stop the "undervalued s-chip" madness.
If you are worried about another Eratata, let me say that no ID, no exec director of Eratata bought shares of their company. They probably could smell something.
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No offence, but be careful. I'm too sore to invest into another S-chip for the time being.