Highly bearish report by Maybank today. I am waiting to see if Valuetronics (33.5 cents now) will decisively carry out a share buyback program to calm the market.
I read the report and felt that it was quite unfair; it contained no new facts (perhaps only one, that their key CE customer is splitting up its business) but lots of long-shot negative assessments. The fact that CE business is waning and ICE business has to take the lead, is nothing new. Sigh, just have to trust your own judgement; listening to other people will make you go crazy!
Just read the MBB report after returning from an overseas trip. I am of the view that the analyst may be too heavy handed in this instance. There was nothing new to what we already know.
Although I have sold down significantly my holding I still believe in the management of this quality small cap and its ability to re-position its business model. There may be short term impact on performance but to state a TP of 25c is clearly to push down its stock price.
Phillips Securities has issued a rebuttal report to Maybank Kim Eng. The ball is in the latter now and lets awaits its response.
I feel strongly that the management of Valuetronics should could out with a statement to address this matter.
Negative reporting is fine if it is based on solid grounds, however, if they are not then the parties involved should be investigated accordingly as shareholder value is severely impacted. Whether it is negligence or poor judgment or for other reasons, only an investigation can determine.
In this case, I think SGX should look into the matter.
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