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bought 25lots at 87.5cents,going for long!
is this a classic case of poor disclosure and lack of transparency?
http://www.straitstimes.com/business/companies-markets/pattern-of-disclosures-by-spindex-board-raises-questions
seems like the management has changed this to a mandatory conditional general offer to seal the deal for shareholders. that being said, seems like there are parties who are starting to carry out due diligence on them - Northstar, the same folks who took out Innovalues. the question is if they are only starting to do the due diligence, wont this cause more delay to existing Spindex shareholders in closing the deal?
question then is - what is the fair and intrinsic value of Spindex?
Anybody knows of any possible reasons for this counter to trade above it' s takeover price of 85 cents?
Today closed at 85.5 cents.
Thinly traded and seldom discussed counter.
Looks set to open 0.825/0.83 today.
Still have some bones left for those who are late to the party.
Congrats to current holders.
Yearly results not as good as expected...
Whats the BIG DROP?
trig0n0metric ( Date: 23-Aug-2016 11:36) Posted:
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Business and share price growing slow and steady, good to keep long term. Still undervalued at 7 x PE and waiting for good results for its final year this week!
After keeping quiet yesterday when Innovalues made a strong move, it is Spindex' s turn today. $0.795 now. Not a lot but 3 cents is good enough.
many of the manufacturers are finally coming alive, even companies like Fischer Tech rallied 15% today.
some key takeaways:
1) those who took profit from Innovalues may switch to cheaper peer, Spindex (PE of 6x FY16 vs Innovalues' 12x FY16)
2) supported by steady growth (8yr CAGR of 13% on the pretax profit)
3) strong cash flow generation over the last 3-4 years (1HFY16: S$8.8m vs FY15 S$12.8m)
4) potential buy-out target particularly for PE funds - EV/EBITDA of just 2.3
both CIMB and DBS have written on Spindex, would probably draw some attention at least in the near term.
playing catch-up to Innovalues. there is quite a huge mismatch in terms of valuation from where Spindex stands and where Innovalues is. while the latter commands better quality of earnings, seems fair that Spindex has a better valuation. now that CIMB and DBS have issued non-rated research notes respectively, it should solicit some interests among the investment community.
We issue an Equity Explorer on Spindex Industries with a Moderate Risk rating and 12-mth potential target of $0.99.
Spindex is an integrated solution provider of precision machined components. It has been growing steadily, with an 8-year (FY07-FY15) pretax profit CAGR of 13%. Pretax margin has also improved to 13.3% in FY15, from 7.7% in FY07. A strong net cash position of about S$22m would enable the Group to capitalise on business opportunities.
At 6x FY16F PE, Spindex trades at a steep 50% discount to peer Innovalues of about 12x, and 53% discount to industry average of 13x. Applying a 40% discount on Innovalue' s PE, given Spindex&rsquo s much smaller market capitalisation, fair value works out to be S$0.99, offering potential upside of 32%.
(from DBS)
VERY LONG HISTORY..........but very illiquid shares
trading at PE of 6-7 compared to 11 for innovalues . excellent growth prospects also
Creeping up.....75c now. More upside to this I hope..watching.
Cheers
sunview ( Date: 07-Apr-2016 11:35) Posted:
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While Innovalues is breaking historic high ($0.955 at the time), holders of Spindex (now down 1 cents at $0.73) can only look in envy on the sideline.
Hunt for precision engineering firms continue ?
Spindex runs up together with Innovalues. But volume is lower today for Spindex.
Now $0.765, up 4.8% and Innovalues is up 6 cents to $0.89 (7.2%)
Taken from today' s UOB-KH report on Innovalues :
" In Dec 15 alone, we saw two precision engineering-related takeover deals in the region. IPE Group in Hong Kong was acquired at a trailing PE of 17.4x. This multiple would imply a fair value in excess of S$1.20 based on Innovalues trailing 12-month PE ratio. Innovalues&rsquo 2015 favourable net cash position, free cash flow generating capabilities, strong management team and potential cost-cutting measures make it a prime leveraged buyout target."
If people start to look for value plays in precision-engineering companies, Spindex would offer even more attractive numbers than Innovalues in terms of PE (~5x vs 12x ) and P/BV (~ 1x vs 3.2x ).
Maybe that why we saw some movements in precision engineering companies these few days.
but it seems like there was sufficient buying power to close above at 73c, hit an intraday and all-time high of 73.5c. appears to me that investors are playing catch-up on this as a cheaper alternative to innovalues.
sunview ( Date: 29-Mar-2016 14:00) Posted:
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