Broadway Industrial Group's stock had a dizzying 64% rally today (closing price: 7.2 cents) after it was reported that DCG Capital Fund considered it a "deep value" stock (see:  ).

This "deep value" is reflected in Broadway's net asset value of 16.68 cents per share as at end-March 2019.

Notably, Broadway has land use rights and a factory -- classified on its balance sheet as "assets held for sale" -- in Shenzhen, which it has been seeking a buyer for.

They are valued at S$48.8 million and S$55.6 million by two valuers (see page 65, annual report 2018).

These valuations are more than 2X the assets' book value of S$19.4 million, which further means the NAV is understated.

hdd arm 300Broadway manufactures actuator arms for hard disk drives. An actuator arm pulls data off magnetic disks or writes new data on them.Operationally, Broadway's current business is a challenging one: Hard disk drives are on a downtrend, overtaken by the far superior solid state drives (SSD). 

Broadway's recent performance has been choppy. It reported $1.7 million in net profit for FY2018, turning around from a huge $15.8 million net loss the year before.

In 1Q2019, however, it reported a net loss of $5.1 million - but said that the outlook for the industry is expected to "stabilise in 2H2019". 

As the share price had been sliding, the company bought back its shares, as can be seen in this 1-year chart:   

buyback7.19Majority of the shares bought back by Broadway were priced at above 8 cents per share. Source: NextInsight compilation

Share Prices

Counter NameLastChange
AEM Holdings2.230-0.040
Avi-Tech Electronics0.435-0.005
Best World Int.1.360-
China Sunsine0.445-0.010
CNMC GoldMine0.245-0.015
CSE Global0.565-
Eagle HTrust USD0.520-0.005
Food Empire0.7700.020
Golden Energy0.155-0.015
GSS Energy0.092-0.006
ISDN Holdings0.199-
JB Foods0.6550.030
KSH Holdings0.400-
Moya Asia0.078-0.002
Nordic Group0.295-0.005
Oxley Holdings0.345-
REX International0.193-0.007
Sing Holdings0.405-0.005
Straco Corp.0.570-
Sunningdale Tech1.260-0.030
Sunpower Group0.545-0.015
The Trendlines0.125-0.006
Tiong Seng0.200-
Uni-Asia Group0.6950.005
Yangzijiang Shipbldg1.040-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1722 guests and no members online