Have just read the above report and checked the recent trades of TEchcomp. Seems to be attracting higher interest ahead of its full-year results and stock price is 43.5 cents, which is looking like ready to breach that 43-cent level. However, still very much an illiquid stock. Wonder how the management will address this illiquidity or is this an unchangeable fact of life for Techcomp?
There is a report from lim and tan securities yesterday. They meet up with management and management expect revenue to grow a robust 33 to 33 %. better than the usual 20% due to the turnabout of their European acquisitions, faster growth o their manufacturing division (better margin) and gain from sales of a subsidiary. See more from this link
www.remisiers.org/index.php?option=com_c...6:research&Itemid=16
ivanignatius says: don't be put off by the illiquidity. For long term, fundamental investors, illiquidity is your friend. A number of academic studies now suggest that you get rewarded for illiquidity as the market is even more inefficient in illiquid stocks as hedge funds and large institutions won't touch them even when they can see the quality and the undervaluation.
And the lack of broker coverage is also a positive. Just look at Epicentre. Anyone living in Singapore in the past five years has known that store in Wheelock Place is jam-packed, and must be coining it, yet it took a note from the excellent Terence at DMG to get the stock flying in January. When Techcomp produces some blow out earnings later this month (I predict), it'll finally pick up some broker coverage, and you won't see the price in the 40s any more.
The key to Techcomp is for them to get their manufacturing right, while not messing up on the Yen from their Hitachi distribution business (the explanation for their disastrous 2008). All their acquisitions in Europe over the past couple of years ought to put them in great stead.
Now 46 cents.... No wonder there was a recent increase in stake by Kabouteur Mgmt LLC. It has increased its stake gradually since Apr 2008.This sort of stock is a long-term investment with a big reward.
Dear All, Happy New Year to all friends here and may the Year of Rabbit brings good health and wealth to everybody. I was pleasantly surprised that the stock price has performed well in the past weeks. I believe more and more investors are starting to understand the fundamentals of this Company and cheap valuations. In time to come, I am confident the stock will hit $1.00. For now, I am happy if the management will give out more dividends to its shareholders this year. Kung Hei Fa Choi!
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