Monday, May 22, 2017

May 2017 Transaction Update


It has been more than one month since i last updated my blog. I have been quite busy recently: both going through some of reports released early of this month and also with my work.


What i have Bought?


I have browsed through total of 339 reports of different companies for this Quarter. As usual, i eliminated all Blue chips & S chips, property, finance, oil & gas, and commodities counters.

Out of the 339 companies, i selected Frencken which met my buying criteria and i quickly bought 100k shares @39cts per share in the morning of 12th May 2017 after they released their Q1 report the night before. I also had went through about 8 quarters of their reports & Annual Reports.

Below are the preliminary thing i am looking at Frencken before going to their subsequents 8 quarters of report & their Annual Reports:

(1) The company reported an increase of 17.9% revenue YtoY in the same quarter.
(2) Gross profit margin increases to 17.2% from 15.2% YtoY in the same quarter.
(3) PBT (Net profit before tax) increases to 8.4mil from 4.4mil YtoY in the same quarter.
(Revenue increases by 17.9% but net profit before tax increases by 91%),
(4) Disposal of PESB (one of the business unit from IMS division) and boosted their cash level to 60mil & 33.2mil after deducting bank overdraft.

Will elaborate more when i have time to do so.


What i have Sold?


I decided to cash out about 18 - 20% of my equity in this quarter, so in the case the market shocks and i will not easily be shocked too.

I sold all my holding of Global Invacom @16.3cts/share & Taisin Electric @43.5cts/share.


What am i holding now?


(1) Sunningdale

(2) Best World

(3) 800 Super

(4) Avi-Tech

(5) Innotek

(6) Frencken





4 comments:

  1. Hi there! Great to read your updates!!!

    Realized that frencken went up a lot since your purchase just 2 weeks ago!

    Any idea if still has a decent mos to go in? It seems that this is a growth play considering that their margins seem to be improving

    ReplyDelete
  2. Hi Sean,


    Sorry i can not advise you on at what price you can buy a counter. It all depend on ourselves how do we value the business and how long do we intent to hold.

    I am just writing for myself to remind me on my investment journey.

    It will be good if you do your own due diligence on the type of business you are interested in.

    All the best!

    ReplyDelete
  3. Hi there,

    Do you have any comments on the latest innotek results?

    Looks like the turnaround story has hit a snag

    ReplyDelete
  4. Hi roar,


    Innotek Q2 result is quite a disappointment....i am expecting it to perform much better, at least about the same as Q1 result.

    While most of tech co performing well this year: Sunningdale, UMS, Valuetronics, Frencken, etc..Innotek is far lack behind.

    Innotek has been reporting lower profit for 2 consecutive quarters, thus, it meets my Selling Criteria.
    I divested all my Innotek shares today at an average price of 33.5cts. Though it still gave me a five-figures profit, i am not really satisfied with this investment.

    One thing i still like about Innotek is probably the management which i think is honest enough to share the company's conditions to the shareholders (from Annual Report, Q1 & Q2 reports). I am keeping in view of this counter for now. Shall it performs better in future, i might invest back. For the time being, will move some funds to other counter and keeping some cash. Thanks!

    ReplyDelete