Eucon -- can run?

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29 Jul 2015 20:35 - 29 Jul 2015 20:45 #22361 by Kapitan
Eucon -- can run? was created by Kapitan
Eucon has to turn profitable this year in order to get out of SGX watchlist (after 3 consecutive years of losses). Can it? 1Q 2015 was profitable at only $166K (with lots of help from forex gain, otherwise, it was another quarter of bleeding).

Aside from profitability, Eucon has to achieve market cap of $40 m. With share capital of 570m, Eucon share price needs to trade above 7 cents. If it can achieve this, Eucon would be nearly a 5-bagger from current price of 1.6 cents. Can it do it within 1 year??? ! Big challenge.

To look at it another way, if Eucon were to achieve $40 m market cap, we would expect earnings of about S$5 million (for a PE of 8x -- which is a generous valuation). Can Eucon achieve S$5 m profit in 3 quarters of this year?

I am slicing the story in a financial way but I don't know much about its business and its new products. Any one can share his insights? Is there a chance to make a killing on this stock?
Last edit: 29 Jul 2015 20:45 by Kapitan.

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30 Jul 2015 20:30 #22366 by gangho
Replied by gangho on topic Eucon -- can run?
It can by selling off loss making units and just retain the Taiwan plants that are producing highend PCBs for smart phones and tablets.

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30 Jul 2015 20:34 #22367 by Kapitan
Replied by Kapitan on topic Eucon -- can run?
Thank you -- i am not familiar with the group structure. What loss-making units and how much losses were attributable to them ?

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02 Aug 2015 10:27 #22373 by gangho
Replied by gangho on topic Eucon -- can run?
Hello Kopitan,
The Taiwanese plant just started to ramp up operation to produce embedded PCB, with revenue of $5m for 1q. It should have finalised the standards with JEDEC for several designs and filed for design patents. I expect production would ramp up very quickly over the next few qtrs.

For its Chinese subsidiary, zhuo Kai, there was a recent announcement on IPO. I'm not sure if it can be done by middle next year, based on its plan.

I think the event may pan out like stratech, another stock in similar situation but now drawing huge attention. Good luck!

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05 Aug 2015 07:57 #22379 by Kapitan
Replied by Kapitan on topic Eucon -- can run?
Thank you gangho. I think Eucon has some plan to exit the watchlist, but it''s challenging.
latest news is, EUCON REPORTS NET LOSS OF $2.4 MILLION FOR 2Q15.

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07 Dec 2015 14:10 - 07 Dec 2015 14:10 #22736 by Kapitan
Replied by Kapitan on topic Eucon -- can run?
Eucon is in talks with an "investor" aka white knight. On its own, Eucon cannot escape from the clutches of the watchlist.
Last edit: 07 Dec 2015 14:10 by Kapitan.

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