Buy @ $0.91 & $0.90
New addition to my portfolio. Was out whole day, hand itchy using Mobile Trading. Blindly follow d.o.g. (from forum), no certainty that he's even holding any… Over the years, did occasionally take a look at their financials but had always decided not to buy any as it's just too illiquid. Sarin is an Israeli co. and their biz is in producing machines for Diamonds (I think cutting and polishing), with factories in India (I think to be near their major customers). Will try to spend some time this weekends to compile their financials…worst case next week when school reopens (will be freer). 😀
9 Sep 12 (Sun)
Current Price Weakness likely due to,
- Q2 (Jun) results showing weakness + guidance for Q312 is weaker before possible recovery in Q412
- Selling by Funds eg. FMR on 3-Sep-12 for 4,671,000 Shares (from 6.21% to 4.83%) & Fisher Fund on 12-Jun-12 from 5.02% to 4.5%
- 1-for-4 Bonus Issue on 6-May-12 (list on 14-May-12), after good share price run up from 2011
Price Chart (Prior to 14-May-12, not adjusted for 1-for-4 Bonus Issue)
Reference : Analyst Reports in SGX / Analysts' Presentations dated 6-Aug-12
From their IR website,
All Figures in (US$'000) :
COMMENTS
Positives
- Dividend Policy to Pay US1.25ct Semi-Annual (10% tax for Singaporeans) Subject to Proftitablity
- Zero Debts ; Cash = $41.9M (~US12.41ct / Share)
- Claims to be Industry Leader (I don't know how to check)
- Plans to Expand into Related Consumables Biz eg. Disposable Parts (Polishing Plates + Chemicals)
- P/L (Revenue, Profits) + Balance Sheet looks a lot Stronger than 3-4 Years Back
- Shares Buy-Back in Action Recently
Negatives
- Biz is in Luxury Segment (Diamonds, Gems) and Dependent on World Economy – Europe still in Bad Shape
- Share Price has Run Up a lot since Last Year Likely Due to the Positive Points
- Quite a few Funds are Vested – Can Result in Volitility when they Buy / Sell
- Current Sell Down Likely Due to this as Sarin had Guided for a Weaker Q3
- Q1 May Have been the Peak, with Q2 Showing Weakness and Expected to Worsen in Q3
- FY08 and FY09 were Bad Years Due to US Financial Crisis but Still have Small Profits
ACTION
- Will likely buy some more if it drops, to keep myself interested
- Will remain wary of Q3 results – If real bad, then wait for further price drops
Note : Current Yield = 3.091% (Net of Tax) ; PE = 11.25 (10.46 using last 4Qs) ie. Hopefully a Balanced Growth + Yield, Small-Caps Stock