Sunningdale Technology - "Thoughts on the market".

14 Feb 2014 21:55 #19122 by josephyeo
The Board of Directors (the "Board") of Sunningdale Tech Ltd (the "Company") refers to the announcement dated 3 October 2013 in relation to the sale of the property at No. 5 Joo Koon Way, Singapore 628944 (together with the building(s) erected thereon) by its subsidiary, UFE Pte Ltd. Capitalised terms used in this announcement shall have the meanings ascribed to them in the 3 October 2013 announcement.
As stated in the 3 October 2013 announcement, the sale of the Property was subject to inter alia the receipt of JTC approval in respect of (i) the assignment/transfer of the Property to Purchaser and (ii) the change of the authorised use of the Property.
The Board wishes to update that the requisite JTC approval has been granted and the sale of the Property was completed on 14 February 2014.
By Order of the Board
Executive Director & Chief Executive Officer Dated: 14 February 2014

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15 Feb 2014 14:45 #19131 by josephyeo
Just to share with you my posting in respond to a question by one of the forumers in this side.

Hi ontheball,

At the time of my first post the ratio of my portfolio was Federal 40%, Sunningdale 20%, Valuetronics 20%, G.Invacom 10% n Excelpoint 10% each.

Due to uncertainty in the market i have sold off all non dividend paying stocks in my portfolio. I am down to 3 counters with Valuetronics n Sunningdale taking up 40% each and Excelpoint 20%. These counters are high dividend yield stocks. It's a defensive move as high yield stocks are less volatile. From observation most stocks bottom at a point when the yield hits 10%.

Valuetronics has clear value w it's low pe n high dividend yield. The 3rd quarter result was good n if they can maintain the momentum, the current financial year will be a record year. Based on historical payout ratio the dividend could be anything from 2 to 2.5 cts.

Sunningdale is a different game n the waiting time may be longer. It's 2013 result should be alright as it's 9 months profits is already higher than last financial year ie 2012. The dividend payout ratio is between 28% to 94%, so the dividend should also be alright.

The initiatives taken by the company will be reflected in 2014. So, it will be an exciting year for Sunningdale. If the initiatives taken by them in 2013 bear fruits, it will be a great year for Sunningdale. If it doesn't, then the call is off. They have got on with a good start with S$5.43 m capital gain from the sales of it's plant in Singapore. Personally I am bullish but i could be wrong. And I have allocated 40% of my portfolio in this counter. So invest with your own risk.

As regards to your question on what I look for in a stock, mine is very simple n basic. I try to look at the company in it's totality … current n forward pe, cash, debts, nta, profit trends, management comments (I assume they know best), 52 weeks high n low, revenue level (if revenue too low, company profit cannot be exciting). I am not into technicalities or financials (economic value, roe, roi etc). Before i buy into the company i look at the downside before i look at the upside. This helps me to avoid taking unneccessary risks. To me, the key to investment is capital preservation. Once one know how to preserve his/her capital, profits come naturally.

Hope above are useful to you. Good luck n all the best!

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26 Feb 2014 05:35 #19214 by josephyeo
Sunningdale result for full year 2013 ...

1. profit S$13649

2. dividend declared 0.7 cts (yield of 4.4% based on
closing price of 16 cts)

3. nta 31.32

See sgx annoucement for more details.

Results meet expectations. If current trend continues 2014
will be a better year as the initiatives taken in 2013 will be fully reflected in 2014. Looking forward to the next 2 quarters of results.

Am heavily vested.

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27 Feb 2014 00:05 #19235 by pine
Joseph : U said u are vested in Sunningdale and it's 40% of your portfolio.

I hope you make it big here. Just to say that 40% is too big a bet in my view.

How about TriTech (50.5 cents) and on the verge of spinning off its marble business for a listing on Catalist?

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27 Feb 2014 12:23 #19243 by Rich
Brother Elvin says:

For plastic manufacturing.. Margins are low no doubt.. However this business is one of those that will never die.. Because plastic is simply the cheapest material to produce in huge quantities.. It will always be used in packaging and sealing..

What Sunningdale Tech's management need to look into is to find ways to value add to their existing services.. So that they can increase/ widen their margins.. Perhaps they could give a free look period for design to acquire new clients etc.. Another alternative is to venture into other niche plastic production areas using their existing tech.

Secondly, their capex is killing their profits.. Financing is very important and very tricky as well, because of uncertainties in the economy.. You can see that they were fractured pretty bad during the 2008 subprime.
However they should be able to improve moving forward as other ASEAN economies develop further.. They'd have a good headstart for now

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27 Feb 2014 20:10 - 27 Feb 2014 20:16 #19250 by josephyeo
Pine, to put 40% of your capital into one single stock is definitely risky unless one is absolutely sure that the company is going to show big improvement. Again nothing is for sure in the market.

In my case, the 40% is actually my profit from the sales of Federal n G. Invacom ... so i am not risking my capital but my profits.

One has to think hard before taking such decision, like asking what if it go wrong, how much lower can it be, etc etc. And again, anything can go wrong in the market.

In my case i am quite convinced that the company is on the right track for the following reasons :

1. the 3rd n 4th quarter result were positive implying that the initiatives taken in 2013 are bearing fruits.

2. the full impact of the initiatives will be reflected in 2014 and given the positive trend in the last 2 quarters n by extension, 2014 is likely to be a better year

3. the dividend .. company declares dividends consistently whenever there is a profit. At curremt price the dividend is above 4% which is much better than what i could get from the banks.

4. good start for 2014 .. the sales of Koon Seng operation give the company a gain of $5.4 mil which is likely to be reflected in current year account.

I am most interested in the initiatives the company took in 2013 n if the next 2 quarters confirm that the decision is right, then i think my decision would be right. If not the call is off. I am in it for the long term ie 6 mths to 2 years, so long as the initiatives are right moves. In the meantime .. collect dividends.

You can see details of the initiatives in my earlier posting.

Having said what i have said i would not encourage anyone to put too much money in one single stock. And should anyone do so, he must be prepared to cut loss if the company fails to perform to expectation.
Last edit: 27 Feb 2014 20:16 by josephyeo. Reason: miss out one point

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