Techcomp - a consistent performer

crclk15

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Techcomp looks interesting.

1. Consistent track record of growing revenue and net profit at 20% CAGR since 2002;

2. Growth of manufacturing division (higher margins) to outstrip that of distribution in the next few years;

3. Acquistions to contribute positively in 2011 onwards;

4. Other growth initiatives such as its JV with SPSIC for the manufacture and distribution of analytical balance products in China. Expects to turn profitable in 2011;

5. Recent increase in stake from Kabouteur Mgmt LLC. It has increased its stake gradually since Apr 2008.

6. Cheap valuations vs peers

Drawbacks

1. Illiquidity - Ave 30D vol is about 129 lots only

2. Insufficient analyst coverage

Do pm me if u want to know more about Techcomp.
 

abutan

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this counter was growing consistently before its bonus share issue.

since the bonus share was issued last year, the daily volume dropped.

but since xmas last year, it started picking up again and broke it resistance of 0.43 recently.

my analysis tio boh?
 

Jarlaxle

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half tio nia...
u stated the volume trend and price trend observation but did not give us ur reason why theres a drop in volume or what causes a breakup!?
was there consolidation or news driven?
 

abutan

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Techcomp has announced it is contemplating a dual listing in HK.

As a newcomer, I would like to ask, how does dual listing help Techcomp?

And, what will happen to the shares once dual listing is completed?

Will it be like half the shares in HK and half the shares in Singapore?

Techcomp's shares are illiquid so does this dual listing help them in anyway?
 

Paul Lee

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dual listing = gimmick to draw in unsuspecting investors (my own view)

A dual listing allows the company to participate in equity raising in HK if it so desired. It can court institutional investors in HK and do placement of shares etc..

Not sure about the exact mechanism but I dun think its like half in Spore and half in HK. You should be able to buy in SG and sell in HK and vice versa so there is a transfer mechanism.

From my observations, those who are thinking that a dual listing would boost the share price are in for disappointment. Initially when the news is announced, there would be some upside. That a good time to exit. After that, when the shares are dual listed, dun expect much more upward price movement.
 

abutan

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dual listing = gimmick to draw in unsuspecting investors (my own view)

A dual listing allows the company to participate in equity raising in HK if it so desired. It can court institutional investors in HK and do placement of shares etc..

Not sure about the exact mechanism but I dun think its like half in Spore and half in HK. You should be able to buy in SG and sell in HK and vice versa so there is a transfer mechanism.

From my observations, those who are thinking that a dual listing would boost the share price are in for disappointment. Initially when the news is announced, there would be some upside. That a good time to exit. After that, when the shares are dual listed, dun expect much more upward price movement.

why when the shares are dual listed, there shouldn't be more upward price movements?
 

MikeL09

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dual listing = gimmick to draw in unsuspecting investors (my own view)

... snipped...

From my observations, those who are thinking that a dual listing would boost the share price are in for disappointment. Initially when the news is announced, there would be some upside. That a good time to exit. After that, when the shares are dual listed, dun expect much more upward price movement.

I believe he's talking about fools like me.:s13:

I once was contemplating on selling a stock at it's 52-wk high, but then word got around that it would be dual-listing in Taiwan soon. And I thought why not tarry a little longer...arguing that since I'd held on to this sucker stock for one year, I could wait another 2-3 mths to hopefully get more money out of it. To cut a long story short, TDR came and went, and the stock was sold down from it's high even before the TDR date. And although it's TDR debutted at a premium over it's STI price, it got nary a lift and, today, this sucker stock is still way down from it's high.:s27:

Here, I wrote the long story in another thread...:D

Anyway, I am still waiting to dispose of this sucker stock, after missing out a chance of making close to 1.8K when it reached its 52-week high of 52.5 cts last Sept. Then, I was waiting for the paper profit to hit my set target of 2K, partly fueled by the optimism that it could potentially reach that amount because of its then impending, much-waited TDR.
But TDR came and went and the rest, as they say, is history.

Another lesson, never count on dual listing for a price boost especially for S- or pseudo-S-chips!

Anybody wants to guess what’s this sucker stock I’ve been talking about in my story?

And since nobody seems to be in the mood for a guessing game, the sucker stock I've been talking about is UtdEnvirotech
 
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musicwhiz55

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Raising more money through a dual listing? The fever has not seemed to die down, and S-Chips are still doing the Hong Kong or TDR route. If the Company could generate enough internal operational cash flows, they would not need to do a dual listing, I feel.
 

MikeDirnt78

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plus and minus about dual listing. its good to have a company listed at exchanges where they have a strong presence. and also to take advantage of borrowing (equity+debt) from different capital markets. i think listing at 2 exchanges can provide a better representation of its underlying share price. more than 2 listing is just a waste of $$$. even some of the western companies have dual listing.

dual listing is ideal for singapore companies like capitaland which is trying to have a presence in china. or keppel corp possibly listing in brazil. but the china s shares are an exception. these companies are "undervalued" for a reason.
 

starbugs

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why did you choose to clear your holdings, starbugs?

I think the dual-listing is being hyped up. Past dual listings such as Novo and China Animal were pumped up and ultimately fell back to earth.

Indeed, Techcomp dropped back to 47c today (from peak of 51c last week).

I still like the company, but will look to pick up only nearer to 40c.
 

abutan

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I think the dual-listing is being hyped up. Past dual listings such as Novo and China Animal were pumped up and ultimately fell back to earth.

Indeed, Techcomp dropped back to 47c today (from peak of 51c last week).

I still like the company, but will look to pick up only nearer to 40c.

it dropped back to 47cents because it was overbought as suggested by the bollinger band?
 

starbugs

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Halted this morning after sharp rises past few days. Sounds like potential GO.
 

starbugs

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General offer announced.

http://infopub.sgx.com/FileOpen/e_06550_Joint ann.ashx?App=Announcement&FileID=500785

The document is quite complex and poorly written, but the gist:
1. The offeror wants to buy the distribution division and the SSHs want to keep the manufacturing division
2. The SSHs will sell all the shares in Techcomp to the offeror, but only after the shares in the manufacturing division are given to all existing shareholders
3. After that the offeror will make a GO for all shares in Techcomp at HK$3.267/share (~S$0.55).
4. The SSHs will make a GO for all shares in the manufacturing division at HK$0.84/share (~S$0.14).
5. Hence total GO is ~$0.69/share

The poorly worded announcement on shareholding changes yesterday caused a lot of people to cash out below 56c this morning
 
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