A-Sonic Ripe for Takeover

Net Cash of Company is about $40.5 million SGD and currently market capitalisation is only $34.8m. The company is debt free and has been turning around for several quarters now. HY2021 revenue is 61% higher than HY2020. Net Profit fell largely due to one off net gain last year and also various government grants during the circuit breaker.

The trade price of the company should be at least equal to the net cash position, translating to $0.675. CEO has been buying u shares lately.

Aug 26 - 1.03million shares at $0.80 (married deal from fellow executive director)
Aug 17 -  31000 shares at $0.6346.
Jul 12 - 10000 shares at $.5945
Jul 19 - 61200 shares at $0.5798

At $0.80, it is a premium of 37.5% on top od today's closing price.

CEO also acquired 257057 warrants at $0.72.

All actions point to a takeover offer as the warrants issued two months ago has not improved trading liqudity. Company is severely undervalued and still under the watchlist as the market cap has not reached $40million.

Heavily vested.

@walterlim, thanks for yr insightful post 6 months ago. The share price has  improved only slightly and the watchlist noose is tightening. What are your speculation on the likely scenarios for the company in the months ahead? 

Report on A Sonic by Phillip Capital. Click link below.
www.stocksbnb.com/reports/a-sonic-aerosp...-trading-below-cash/

At above 60 cents, A-Sonic is comfortably OK with respect to the requirement for at least $40 M market cap, in order to exit the watchlist. 

The dark clouds have been lifted, and proven management right in scooping up shares, as you can see in Walter's post above.

The NAV is close to $1.00, and it's the next milestone long-suffering shareholders can hope the stock will approach in the weeks/months ahead. 

The last day to trade the warrants is 1st April. Given the recent analytical report covered by Philip Capital and more awareness that the stock is trading under net cash position, i am expecting the share price to go up quickly given the low liquidity and the attractive dividend given in May.

The management seems very focused in the business and given the current supply chain situation worldwide, A-Sonic is placed at an advantageous position to capitalise on generating greater revenue and profit. Cash flow has been improving year on year and the company is in a strong position to take its business to the next level.

Nice to see shareholder highlight the merits of A-Sonic in Q&A for AGM (page 7).

links.sgx.com/FileOpen/sgxnet20220425%20...cement&FileID=713786


i) The company share price is trading below its cash per share;

ii) The company share price is trading at more than 20% below NAV;

iii) The company share price is trading at much more than 20% below its adjusted NAV (if we adjust for the true market value of the properties that are carried at cost less accumulated depreciation);

iv) The company P/E ratio is less than 5!;

v) The company revenue is continually growing;

vi) The EPS/PBT/PAT/NAV is growing consistently over the past three years.; and

vii)The gearing ratio is reducing consistently over the past three years.