2Q Stock Picks

Wiki
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14 years 2 weeks ago #3552 by Wiki

Replied by Wiki on topic Re:2Q Stock Picks

Noting the recent rally in penny stocks which might suggest market has reached a late stage of its rally. I would pick a relatively safe s chip, Sinopipe $0.23. NAV - $0.47 Cash per share - $0.29 Rewarding shareholders with a 2cts dividend, compared to other s chips where its questionable whether their hoard of cash is really there. Pretty consistent earnings. Morgan Stanley Asia holds a stake. Substantial shareholder is adding stake. Chartwise, looks like its trying to break out of base formation.

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Dongdaemun
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14 years 2 weeks ago #3556 by Dongdaemun

Replied by Dongdaemun on topic Re:2Q Stock Picks

Wiki, the company has Rmb 270 m in long-term and short-term borrowings. Its cash in the bank is Rmb168 m. In that case, Sinopipe doesn\'t have 29 cents cash per share, does it?

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Dongdaemun
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14 years 2 weeks ago #3576 by Dongdaemun

Replied by Dongdaemun on topic Re:2Q Stock Picks

Decided to vest in Sinopipe after learning that Loyal Team Group has bought about 5 million shares since early March after the FY09 results were announced. It now holds 40 million shares, which is 17.8% of the share capital. On reading the annual report, I believe the prospects for Sinopipe are pretty decent - although initially I felt the business is quite mundane. After all, it\'s about making pipes & that aint rocket science. Hahahaha....

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jinraidx
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14 years 2 weeks ago #3577 by jinraidx

Replied by jinraidx on topic Re:2Q Stock Picks

Hi Harlequin, u r right cash at 168.072m debt at 279.219m net debt is (111.227m) Whos Loyal Team Group btw? A core investor? This firm fails the rule on inventory the inventory/sales ratio increased over 8% yoy ie inventories are rising much faster than sales. Think I will give this firm a miss..esp when no free cash flow.

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Dongdaemun
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14 years 2 weeks ago #3579 by Dongdaemun

Replied by Dongdaemun on topic Re:2Q Stock Picks

jinraidx, the IPO prospectus lists the shareholders of Loyal Team as including the CEO, COO and 2 executive officers & their family members - wife, father in law, sister, etc. CEO was co-founder of Sinopipe along with the chairman. as for rising inventory, the FY09 AR says it\'s \" mainly due to the stocking up of raw materials and finished goods to meet the anticipated requirements of our customers.\" Translated, it means we have lots more work ahead! :laugh:

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Dongdaemun
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14 years 2 weeks ago #3580 by Dongdaemun

Replied by Dongdaemun on topic Re:2Q Stock Picks

What is impressive is the 1.2 cent special dividend on top of the normal 0.8 cent div. It\'s a positive sign when it comes from a S-chip! At 2 cents, the yield is a decent 8.3% based on current stk price of 24 cents. The NAV is 48.5 cents. What\'s bad is the gross margin has been coming down over the years since IPO. More sales, but margin coming down.

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