super net profit result - way above normal 23% rate, now PE is abt 8X historical.
 expect 2011 to be excellent too, so PE downn to ....? 5 or 6

Hello Everybody, Reality is sinking in and as I suspected (unfortunately), the start of 2011 is not turning out to be a good year in equity.

Hold on tight cos this right is going to be really rough. Libya is a big problem that even the USA cannot solve (cos they don't have any influence in that country). It may take a couple of months for a new ruler to be reinstated and bring peace back to the land.

Stick to fundamental sound stocks and stop buying stocks that claimed their growth is 100% because they started a new business or sell a new product.

A real businessman will tell you that new products or new businesses take years to breakeven, even if they are really good.

Take a good look at HTL International, they have been around for ages and still only make below S$30m per year. I admire the management but also pity them. It is a pity that such an honest management could not find the breakthrough in their business. Good thing that they decide to raise the dividend payout this year.

Techcomp result is still not out. I am waiting in anticipation for a good set of results.

Hi PJ,

I am not a good teacher.

I guess every investor has his/her own strategies to studying the market and investing the right stocks. Some take long term views while others believe in timing the market.

Maybe for a start, you can read what the forummers have posted in the website.

I have done some articles for the website last year. It shows my preferred style of investing. Last year was a good year for equity market. I made more than 2 millions from my portfolio. I am more skeptical of this year as I believe global inflation may disrupt the equty market. Hence, I tend to be more selective of companies with strong balance sheets and good fixed assets.

Have a good Year of Rabbit.

PJ

I believe the best way for any inexperienced investor (like yourself) to learn investing, is from a successful and seasoned investor. This would enable you to shorten your learning time and avoid making the many painful mistakes that most investors tend to make. Like the animal world, the young always pick up a lot of survival skills from their seasoned, experienced parents. Had their parents been insufficiently wise and successful, they would have perished long ago.  The stock market is a very treacherous and deceptive place for many to lose their hard earned money. Most people tended to do well in the bull market but only to lose part or all of their gains in the bear market. Various textbooks and golden tips could offer much help to new investors but there are also many lessons that cannot be learned from textbooks.

MG:

 In the past, really no time to do "homework" hence no active involvement in equities.

Now just  into my retirement.  Started doing homework by reading fin websites etc.  Still very inexperienced.  Hence just asking for your timeline for Techcomp. 

In fact, one of my homework is to read up and follow people like you who post quality stuff in Nextinsight. Guess I am still a slow coach trying to catch up.  Maybe you can recommend me some good courses  and good fin websites to attend/to visit  to learn about equities investment.

cheers

PJ, Do the homework yourself.

I give you a fishing rod. You have to learn how to fish yourself.

If you earn good profit from the stock market, it is your ability and credit. If you lose money from the stock market, it is your fault.

Have a good weekend.

May I know what is your timeline for Techcomp to hit $1.00?  Thanks.

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.

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.    

TECHCOMP: 'One of the most consistent companies I have researched on...'

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?

Substantial shareholder Kabouter bought at 267 lots about 42c on 27 Dec.

I followed and added to my holdings today at 41.5.

:)

MacGyver,

why are you so bullish on Techcomp? Is it because of its management or reasons otherwise?

Abutan,

Why are you worried about the lack of trading if you believe the stock and wants to hold on to its for mid-long term?

Liquidity is a problem posed for fund managers and traders who need to trade frequently to answer to their clients' needs.

in addition, liquidity is a function of price. The higher the price and valuation, the higher the liquidity.

If you are new to the stock market, I would suggest you study a little bit more on every counter before you jump in. Take the stock market like the automotive market. You will definately check every brand and model before you decide whether to buy a BMW or Benz. Similarly, take the time to understand the business and identify the stock which can make money for you.

Cheers and a Happy 2011 to you!

but this stock very hard to liquidate.

before xmas eve, there were many days with no trading at all.

this happened after they issued their bonus share?

After sleeping for so many months, Techcomp seems to be under accumulation. Xmas eve was up.... now up 1 cents at 41.5 cents on 152,000 shares.

Results shld be positive, just that it is at least 2 months away. Dividend should be decent....like before.

Time stamp: 11.30 am.
 

2 pieces of good news in 2 days. Techcomp makes US$600K but wonder what other reasons for selling Bibby JV. ;)

Techcomp disposed of Bibby JV for USD980,000 .

Realised gains of approximately USD600,000 .

Current economic instability in Europe offers many opportunities to cherry-pick good acquisition targets


Singapore and Hong Kong, 22 July 2010 

SGX Main board-listed Techcomp (Holdings) Ltd, China's leading manufacturer and distributor for analytical and life science instruments, is pleased to announce that, the Group has entered into a Sale and Purchase Agreement with Bibby Scientific Limited to dispose its 50% interests in Bibby Scientific (Hong Kong) Limited, a jointly controlled entity. Upon completion of the Disposal, BHK will cease to be a joint venture of the Group. The Consideration of the Disposal is approximately USD980,000. BHK's net asset accounted for 0.87% of the latest audited consolidated net tangible assets of the Company and its subsidiaries. The consideration was arrived at after arm's length negotiations on a 'willing buyer willing seller' basis.

The consideration shall be payable in cash by the Purchaser in accordance with the schedule set out in the Agreement. The Group will realise gains of approximately USD600,000. The disposal is expected to have a positive impact on the Group’s earnings for FY2010. “The decision to dispose of the Bibby Scientific JV was made after a thorough evaluation of our available resources. While there is a lot of potential to be derived from the Bibby Scientific JV, we believe that by re-allocating our available resources and efforts to grow our European operations, we will be able to achieve higher returns. This will also be a win-win situation for both parties as Bibby Scientific will be able to better manage its operations to suit its expansion plans in China. We will continue to work closely with Bibby Scientific to explore other opportunities in the future. 

"We are in the mist of negotiating with potential acquisition targets which could add more synergies to our operations. The current economic instability in Europe offers us many opportunities to cherry-pick good potential targets." - Richard Lo, President & CEO of Techcomp