Thursday, June 17, 2010

Can Start Looking At LNGRES

Was not going to look at stocks specific during the World Cup but sometimes things are happening that will cause
you to change your mind. No, the stock is not in liquid natural gas.

The principal activities of the Company are investment holding and provision of management services. The principal activities of its subsidiaries are design and manufacture of high precision moulds, tools and dies. LNGRES is involved in the design, manufacturing and assembly of precision moulds, tools and dies, jigs and fixtures, mechatronic components moulds, semiconductor components and electronics and electrical components and connector parts.

The company also designs and fabricates connector moulds for connectors used in plasma television, SIM card holder for hand phones and other precision connector products. The company has two factories in Tanjung Agas Industrial Estate, Muar, Johor. Meanwhile, LNGRES''s major customers include ST Microelectronics Sdn Bhd, Taiko Electronics (M) Sdn Bhd, FCI Connectors (M) Sdn Bhd and Hirose Electric (M) Sdn Bhd. The company supplies its products mainly to the semiconductor, computer & peripheral, electronics and electrical and telecommunication industries. LNGRES also exports its products to Singapore, US and other countries.

189.8 mn shares
Market cap: RM40m

Its a small company and the shares have almost never been played up. The company manages its finances prudently. It has some RM11m in cash. The company has been making money in good and bad economic times. Not very exciting but steady like a rock. NAV at 22 sen.

Figures for 2007 / 2008 / 2009 / 2010 (est.)
Revenue RM mn 28.3 / 32.6 / 29.3 / 35.1
Cost of sales RM mn (19.9) / (24.0) / (24.2) / (27.8)
Gross profit RM mn 8.5 / 8.6 / 5.1 / 7.3
Net profit RM mn 5.2 / 5.2 / 2.1 / 4.1

Look at the price chart its has always stayed at 14-16 sen for the longest time. However, some activity drove the shares a bit over the past week. The grapevine has it that a controlling block has been sold and that the counter should be in for some excitement with a strategic asset injection. Although we may not know the actual assets being injected, it is relatively safe at present levels for a trade (20-21 sen). Apparently the controlling block changed hands at levels much higher than the current share price.

NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

1 comment:

mior nurzaidin said...

Chairman YBhg. Dato' (Dr) Pahamin Bin Ab Rajab holding 12,000,000 shares or 6.40%