The following postings were made this morning by Kevin Scully, executive chairman of NRA Capital, on his blog. Visit www.nracapital.com
Am adding Juken Technology to my Stock Picks today......
This is another golf course recommendation. I managed to meet and even play golf with the management.
The company went through a rough patch over the last few years with the advent of the digital camera which significantly damaged its positioning as a plastic component manufacturer for film cameras.
It has transformed and moved into auto parts and still remains in cameras but now producing parts for digital cameras (SLRs).
Earnings would have recovered earlier in 2008/2009 if not for the global financial crisis.
But we have seen a nice recovery in earnings since the second half of 2009 which was sustained in H1-2010. A recent acquisition from Swatch strengthens its position in the auto business even further.
Please read my company visit update today where I briefly review the business and give my price target which is signifcantly higher than current levels.
It is for this reason that I am adding Juken Technology to my Stock Picks today.....please note its small size which could increase volatility and also the presence of warrants. Its H1-2010 results saw net profit rise more than 3777%.
Recent story: JUKEN: 1H10 earnings up 39-fold at S$2.6 m
Removing Hisaka from my Stock Picks today.......as it has exceeded my price target of S$0.37
I added Hisaka to my Stock Picks on 15 April 2010 when its share price was S$0.275. The arrow on the chart below shows when I added Hisaka to my Stock Picks in April this year.
The stock has risen nicely in the last few weeks and even hit a high of S$0.39. The current price of S$0.37 to S$0.375 is at my price target and I am therefore taking it out of my Stock Picks as it has already achieved my price target.
Our analysts has an even higher price target of S$0.50 while other analysts are looking at a slightly lower level at S$0.45.
There are also a number of rumours that are circulating about non-fundamental or business reasons for the share's rise including an RTO which we have not been able to substantiate. As I highlighted in my earlier Blog....I think with more than 35% gains since my recommendation over the last five months, investors should start taking profit on the stock now.
Recent story: KEVIN SAYS: 'Hisaka and ASTI expected to deliver strong full-year numbers'
