Thoughts on NutryFarm (fka Lottvision)

Hi sykn, technically there is no change in the company in terms of earning per share, nta, profits if there is no share placement.

But with the share placement of 20 mil against the consolidated shares of 40 mil, there are implications. The nta n cash holding of the company will be better. So is the balance sheet. These are positive. Another positive result of the placement is that the company is in a position to declare dividend if they want to.

The negative impact is on the earning per share which will be lower resulting in higher p/e. Unless there is improvement in earnings the p/e is likely to be higher than before the placement.

The consolation is that the earning trend at the moment looks quite good but whether the up-trend can be maintained remains to be seen. We will probably know only in the next 2 to 3 quarters.

Assuming that the traded price after the completion of the placement is the same as the placement pricement of 32 cts, the company is now capitalised at S$19.2 mil (60mil x 32 cts). The 2nd quarter profit is S$500k+. Assuming that they are able to maintain this level of profit the forward p/e would be slightly less than 10, which is not too bad. The p/e will be lower if the profit momentum improve further n vice versa.

Above are "as I see it". And i could be wrong.
Anyway .. all the best!

Joseph, thanks for sharing. This company deserves a closer look at potential value, although I would place it at medium risk. I've not had good experience with S-chips, but the fact that its HQ is in HK and that Neo Chee Beng in on the board, does help to alleviate investors' concerns.

Sykn, you may wish to know that if the consolidation n placement get through the company will get into a net cash position.

Currently it has a cash of S$2.9 mil and debt of S$4.6 mil. The placement will give them around S$6.0 mil resulting in a net cash of S$4.3 mil which work out to be 7.1 cts per share.

Just for info. Best rgds!

Pls note .. figures are round up n are aproximates but should be close enough.

Hi Joseph, the full result of Lottvision is out. What's your thoughts on its result and its future profitability? Thanks.

Joseph, yo, thanks a million. Lottvision is on the up & up, even after share consolidation in June'15 -- Volume has been picking up. Any further views on thisHK-based penny stock???