ISDN (39.5 cents) trades at a trailing PE of 31.7 and dividend yield of 1.1%. Price to book is 1.4.
Chart: Bloomberg.ISDN Holdings had a most remarkable run when it rocketed from 11.5 cents at the start of 2013 to $1.40 by June of the year.
In other words, it was a 12-bagger in just six months.
But whatever fuel it was that fired the stock up has since been spent, and the stock trades at a level closer to earth -- it was 39.5 cents recently.
ISDN's financial results have done little to justify the stock being at those elevated levels.
* FY2013 revenue grew 7.4% to $164.9 million but earnings weakened 12.7% to $6.4 million.
* For 1QFY2014, revenue rose by 26.6% to $39.1 million but earnings slumped 45% to $0.6 million.
Still, ISDN's managing director Teo Cher Koon decided the future of his business was worth buying into at the recent stock price levels. 
Teo Cher Koon, MD of ISDN Holdings, at a stone-laying ceremony for a hydropower project in Sulawesi in May 2013.
Photo: annual reportThus, on May 23, he scooped up 240,000 shares (at 39.29 cents apiece), adding to his May 14 purchase of 400,000 shares (at 41 cents apiece).
He owns 128.5 million shares, via his wholly-owned vehicle Assetraise Holdings, or a 35.71% stake in ISDN.
ISDN is diversifying largely into the energy sector.
Its investments in the coal and hydropower sectors have achieved notable milestones, it said in its recent 1Q results press release.
| ISDN has articulated its plans for these businesses. In October 2013, Mr Teo said: “In total, we expect both our coal and hydropower ventures to require a capital injection of approximately $150 million from the Group. From our recent issuance of warrants, we expect a cash inflow of approximately SGD $111 million if these warrants are exercised within five years, up till 2018. "In the interim, we are considering to raise funds via convertible loans comprising of two or three tranches that may possibly eventually lead to a public listing for our coal-related ventures, subject to the requisite regulatory and shareholders’ approval. "As for our planned hydropower projects, as earlier announced, we have in mind the establishment of business trusts to hold these series of hydropower projects under one single umbrella as a way to unlock maximum value for investors.” |
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