No info on hydropower biz, but news on share placement at 24 cents. There is very strong buying in this stock while the clarity and info from the company has been inversely proportional to the stock price trend.
I too have been trying to understand why ISDN has been shooting up. Give up--nothing in the results announcements suggest that they are a turnaround story or that it is an undervalued gem. I read NRA's newly released report. Same thing. It's overbought.
Earnings below expectation
.
ISDN 4Q12 net loss of S$0.6m was below our S$2m expectation due mainly to lower-than-expected sales and higher-than-expected operating expenses.
Maintain fair value but downgraded to Neutral.
After lowering our FY13 and FY14 sales estimates, our net profit forecasts have been reduced by 18% (not including
its new hydropower business).
However, our fair value remains S$0.24, after rolling forward our base from FY13 to FY14, still pegged at 1x P/NTA.
While we are reviewing the impact of its new hydropower business on earnings, the near - term valuation is not changed and we downgrade our recommendation to Neutral.
ISDN has been an incredibly powerful stock. But at 52 cents currently, after flying from 12 cents just a few months ago, U must be incredibly insightful to buy in with conviction that the business is worth a lot more than 52 cents a share.
For a fact, some people's ISDN holdings have been borrowed out under SBL in the past week. Who are the borrowers? I wouldn't be surprised that they are short-sellers, readying an act. Take care!
The company did a trading halt of half a day (so far) for this small announcement?
.... the Company has, through its wholly-owned
subsidiary, ISDN Investment Pte Ltd (“ISDN Investment”), incorporated a wholly-owned subsidiary, Aenergy Holdings Company Limited (“Aenergy”) in Hong Kong, with a registered share capital of HK$10,000. Aenergy is principally engaged in exploring investment opportunities in energy business in Indonesia.
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