Biosensors vs Techcomp

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14 years 10 months ago #2308 by Morpheus
Replied by Morpheus on topic Re:Biosensors vs Techcomp
Up 10% yesterday. It is a move in the right direction. The 2009 results announcment should provide the catalyst for the stock to catch up with the market.

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14 years 10 months ago - 14 years 10 months ago #2484 by neontet
Replied by neontet on topic Techcomp
In today\'s article, I see a comparison made between Biosensors & Techcomp\'s PE multiples. Not apple to apple comparison. www.nextinsight.net/content/view/1971/60/ Biosensors has lots of R&D and patented knowledge - Techcomp is a contract manufacturer with a very low-cost set of overheads in China. Techcomp is also a distributor of Hitachi scientific equipment, so the margins will be relatively low. All said, Techcomp should be worth a lot more than current \'lelong\' price of 40 c. A lot depends on upcoming full year results. It\'s going to result in either a sharp rally or it\'s confirmation that the stock is a so-so stock not worth more than 40 c (current price).
Last edit: 14 years 10 months ago by neontet.

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14 years 10 months ago #2486 by MacGyver
Replied by MacGyver on topic Re:Techcomp
Do take note that the manufacturing gross margin is around 20-30%. The overall margin is dragged down by the distribution margin of around 5-7%. Hence, with the manufacturing division contributing a bigger portion of the sales, the overall margin is expected to improve. While I have little doubts about Biosensor R&D and patents, it waits to see whether these can translate into profitability. Note that Biosensor track record as a profitable entity is patchy. This is still very much a concept stock. Techcomp on the other hand, has been profitable since listing and it is likely to have a good profit in 2009, while 90% of the manufacturing businesses are suffering. The NTA of the Company at 30 June 2009 is 38 Singapore cents. I expect the NTA of the Company to be around 40-43 cents by 31 December 2009. The current share price is only their NTA. Of course, the downside is the poor liquidity and relatively small side. This is not a recommendation to buy or sell. Merely a personal opinion.

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14 years 9 months ago #2615 by Dongdaemun
Biosensors this morning: Results announcent looks pretty encouraging. Is the news in the stock prie already?? :blink: :side: In 3Q FY10, the Group reported a net profit of US$12.4 million or 1.17 US cents earnings per basic share and 1.13 US cents earnings per diluted share, compared to a net loss of US$0.3 million or 0.02 US cents loss per basic and diluted share in 3Q FY09. For the FY10 nine-month period, the Group reported a net profit of US$23.0 million, or 2.17 US cents earnings per basic and 2.13 US cents earnings per diluted share compared to a net loss of US$1.5 million or 0.14 US cent loss per basic and diluted share in FY09 nine-month period.

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14 years 9 months ago #2619 by Morpheus
Replied by Morpheus on topic Re:Biosensors vs Techcomp
Harlequin, Annualised Biosensor\'s EPS gives me 2.84 US cents, meaning almost 4 SG cents. At 79 cents, the PE is 20x. How much can it grow in 2010? 50% or better ? It is anybody\'s guess. Granted that it should trade at a premium due to its patents and market capitalisation. But the margin safety is just too low for me to consider.

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14 years 9 months ago #2673 by Dongdaemun
Note the unusually high vol of Techcomp shares done so far this morning: 247,000 : and all above 40 c! I consider this a very interesting positive signal. :laugh:

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