Stock Picks for 2010

Morpheus
Offline
Elite Member

14 years 4 months ago #2284 by Morpheus

Replied by Morpheus on topic Re:Stock Picks for 2010

Lelong Lelong, watch Abterra lor, stock gaining momemtum... Coal is a substitute for crude oil. I expect crude oil price to hit USD 100 per barrel in 2010. That means coal price should shoot up also. Lelong Lelong, better load up on Abterra. :laugh: :laugh:

Please Log in or Create an account to join the conversation.

Morpheus
Offline
Elite Member

14 years 4 months ago #2285 by Morpheus

Replied by Morpheus on topic Re:Stock Picks for 2010

Changtian Plastics also going for TDR !! Remember to load up the stock for the ride up. :laugh:

Please Log in or Create an account to join the conversation.

Morpheus
Offline
Elite Member

14 years 4 months ago #2286 by Morpheus

Replied by Morpheus on topic Re:Stock Picks for 2010

Don\'t forget Techcomp. GEM stock who has not moved yet. Read their 1H2009 results announcemet. Expects 2009 to be a good year. Their acquisitions will start to contribute in 2010 and will push earnings to new heights. Do your homework :laugh: :laugh:

Please Log in or Create an account to join the conversation.

musicwhiz
Offline
Premium Member

14 years 4 months ago #2291 by musicwhiz

Replied by musicwhiz on topic Re:Stock Picks for 2010

Hi Morpheus, How were Techcomp\'s acquisitions funded? By internal cash flows, equity or debt? How accretive are they supposed to be and are these acquisitions profitable when acquired as well as cash flow positive? Thanks in advance.

Please Log in or Create an account to join the conversation.

Morpheus
Offline
Elite Member

14 years 4 months ago #2294 by Morpheus

Replied by Morpheus on topic Re:Stock Picks for 2010

Hi Musicwhizz, Techcomp\'s French acquisition is funded via internal resources. They bought the Company in 2H2009. Hence, they will only consolidate 3-4 months sales into the Company. Full contribution will be in 2010. My understanding, speaking to the Chairman is that Techcomp will provde more producs for them to sell in Europe and also help them to reduce costs by doing global sourcing for their raw materials. This should improve the sales by 10-15%. Hence, I am looking at sales contribution of around USD 10-12m from this acquisition. If we put a normal 7% margin to this Company, we are looking at additional USD 1m profit. Techcomp has a track record of growing 20% every year. If they can do it in 2010, then we will see a good growth to around USD 130m sales. If they achieve their normal margin range of 7-9%, then we are looking at FY2010 PE of around 3-4x for Techcomp. Not to foget the dividends. :laugh:

Please Log in or Create an account to join the conversation.

musicwhiz
Offline
Premium Member

14 years 4 months ago #2301 by musicwhiz

Replied by musicwhiz on topic Re:Stock Picks for 2010

Thanks Morpheus for providing the facts and numbers, I really appreciate it. Net margin of 7% if not high, but if the company can maintain steady and growing sales then it\'s a positive thing. I will need to look more closely at their business model, BAlance sheet and Cash Flow Statement, as well as this French acquisition you spoke of. OK time to do homework..... Thanks again!

Please Log in or Create an account to join the conversation.

Time to create page: 0.237 seconds