ACTION ASIA

Action Asia is an unusual manufacturer in that it has only 1 customer - Philips. this guy accounts for, ok, not 100% of revenue but almost all of it - especially the profits. PE is only 4X based on last year\'s earnings & stock price of 19 cts. Q1 this year the profit jumped 100%, which suggests that the PE for this year is gonna be real low (if they can maintain the earnings momentum). Anyone here has insights into this biz? Or views on it?

1H net profit is up 74% . Good set of results, with eps now at 2.9 cents. Annualised and it becomes 5.8 cts, which is 3.27X PE based on 19 cts in stock price. However, note the 2Q results where the cost of raw materials & consummables used jumped by 92%, exceeding the revenue growth of 77%. Indeed input costs has been going up!

Cheap and cheap. at 19 cents. CIMB has fair price target of 40 cents, ard there. Unknown gem cos not enough publicity by company, which is based in China & Taiwan.

This is one lonely stock, which has not been able to inch forward, though my friends consider it truly undervalued.

CIMB has a 40-c target price, which is like 100% higher than current market price.


Ths type of stock will perform best when enough analysts cover it. If only Kevin Scully will take a look  it!


www.nextinsight.biz/index.php/story-arch...hat-analysts-now-say

2Q result was excellent, CIMB continued to promote it, yet the stock could not stir to life - until now.

At 20.5 cents (up 1 cent today) and a humble PE of 3X, it is still a long way from CIMB's target of 40 cents.

nextinsight.biz/index.php/story-archive-...hat-analysts-now-say

Interesting business and valuation.
Why on earth doesnt the company talk more, raise its profile, get analyst coverage (beyond CIMB)?