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(Post 1 of 1301) 01/25/2000.12:18:00 |
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Unisteel Technology Singapore listing approved in principle Unisteel Technology Ltd, a maker of disk drive components, said it has received approval in principle for a listing on the Singapore exchange. The company, whose major clients are Seagate Technologies, Western Digital and Maxtor Peripherals, said it achieved a net profit of 2.30 mln sgd on turnover of 11.20 mln sgd in the first half to June 1999. The company posted a 1998 net profit of 2.50 mln sgd on turnover of 15.70 mln sgd. |
| (Post 2 of 1301) 02/14/2000.16:07:00 |
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Unisteel gets in-principle approval for mainboard listing By Ling Su Ann UNISTEEL Technology, a leading integrated manufacturer of high-end precision fasteners, has secured in-principle approval from the Singapore Exchange for a mainboard listing. The company's core businesses include the supply of precision fasteners and the provision of surface technology services, such as aqueous cleaning and electro-polishing. Incorporated in 1988, Unisteel has since established a track record in the hard disk drive (HDD) industry. It currently supplies precision fasteners on a global basis to three major manufacturers in the HDD industry -- Seagate, Maxtor Peripherals and Western Digital. In 1998, the company supplied 45 per cent of the world's HDD market, which is growing at an annual rate of 15 per cent. "We intend to extend our reach to 75-80 per cent of the HDD market," said Bernard Toh, Unisteel managing director. At the same time, Unisteel has diversified its customer base to include the electronics, telecommunications, computer and transport industries. Hewlett-Packard, Motorola and Shimano are some of its other customers. Due to increasing demand for precision fasteners, the company has recently doubled its production capacity and moved part of its operations to new premises. The factory currently produces 100 million fasteners a month and this will increase by another 20-30 per cent at full capacity, said Mr Toh. Unisteel's strengths include its ability to be a one-stop service provider with its in-house production capabilities, manufacturing capacity, commitment to quality and strategic alliances with leaders in the global fasteners market. Over the past 10 years, group turnover has increased to $15.7 million in 1998 from $1 million in 1988. For the six months ended June 30 1999, the company posted net profits of $2.3 million on a turnover of $11.2 million. UOB Asia Limited is the manager for Unisteel's initial public offer. - The Business Times |
| (Post 3 of 1301) 02/15/2000.11:40:00 |
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Unisteel Makes 48.1M Shrs IPO At S$0.50 Each Singapore's Unisteel Technology Ltd. said Tuesday it is issuing 48.1 million shares at S$0.50 each in its initial public offering. The company's offer comprises 33.7 million placement shares for institutional investors and 9.6 million shares for retail investors. The 4.8 million shares reserved for employees will be offerd at a discounted price of 47 Singapore cents per share. Unisteel is a manufacturer and supplier of precision fastners for the telecommunications, electronics and computers industries. Unisteel said its IPO represents 25% of its enlarged share capital of 192.4 million shares. The offer will close Feb. 22, and the shares are expected to begin trading on the Stock Exchange of Singapore's main board on Feb. 24. The company plans to raise S$23.9 million in net proceeds, of which S$7 million will go toward repaying bank loans, S$1 million toward buying plants and machinery. Some S$15 million will be used as working capital. The shares will trade on a price-earnings multiple of 14.2 times 1999 earnings per share of 3.53 cents. Lead manager for the IPO is UOB Asia Ltd. |
| (Post 4 of 1301) 02/16/2000.19:35:00 |
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Investment of $853,000 for 19.9% stake in Mocha, an Internet software development company. Another Dot.Com company ? Worth taking a look. Have subscribed for 100 lots! |
| (Post 5 of 1301) 02/23/2000.09:27:00 |
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Unisteel Technology IPO retail tranche 40.20 times subscribed Unisteel Technology Ltd said the retail tranche of its initial public offering was 40.20 times subscribed when the IPO closed on Tuesday. There were applications for 387.30 mln shares for the retail tranche of only 9.60 mln shares, it said. Unisteel Technology, which makes disk drive components, sold a total of 48.11 mln new shares at 0.50 sgd each. Apart from the the retail tranche, the IPO also included a placement tranche of 33.68 mln shares and 4.81 mln shares were reserved for employees and business and associates. Unisteel Technology is expected to start trading tomorrow. |
| (Post 6 of 1301) 02/26/2000.19:34:00 |
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VICKERS BALLAS: Unisteel Tech – 02/18/00; Stock Price: S$0.50 BUSINESS: The group is involved in the manufacture and supply of precision fasteners, and surface technology services: Precision Fasteners § HDD § Computer § Consumer Electronics § Telecommunications § Transportation Surface Technology Service § Aqueous (AQ) Cleaning § Electro-polishing (EP) § Passivation Unisteel currently manufactures a comprehensive range of high precision and tight tolerance miniaturefasteners. These range from tapping fasteners to high-end cold-formed components and Anti-galling fasteners. The group has successfully developed and launched Unitronic Anti-galling Fastener materials, which the management believes the group commands 80% of the world’s market share. Anti-galling fasteners reduce the chance of thread jamming. The group has also developed capabilities in Electro-Polishing and Aqueous Cleaning (AQ) capabilities. Electro-Polishing is the process of smoothening surfaces, which is critical in precision parts. Unisteel’s AQ line was developed as a value-added service for other component manufacturers and has been qualified by Maxtor and Western Digital. Business from the HDD industry accounted for more than 90% of its revenue in each of the last 4 years. Key customers include Western Digital, Seagate, and Maxtor. For 1H99, percentage of sales from the 3 companies is 39%, 36%, and 22% respectively. Singapore makes up the bulk of sales, contributing 76%, followed by Malaysia with 17%. China, Thailand, and others make up the remaining 7%. Financial: The group’s turnover has returned a CAGR of 33% between FY96 and FY99. The decline in FY98 waslargely due to Seagate specifying the use of TORX PLUS fasteners for a few of its HDD models. TORX PLUS fasteners were only supplied by Camcar Textron and its licensed manufacturers. In August 98, Unisteel entered into a licensing agreement with Camcar Textron. Price erosion of up to 10% for some range of fasteners also affected sales. Net Profit grew 10 fold from $0.5m in FY96 to $5.1m in FY99. Net profit decreased in FY98 due to lower turnover and higher operating expenses. Correspondingly, operating profit margins improved from 6.2% in FY96 to 25.4% in FY99. Risks: The group is highly dependent on the HDD industry, which accounts for more than 90% of Unisteel’s turnover. This risk is further compounded by its dependence on 3 major customers, namely Maxtor, Seagate, and Western Digital, which aggregate more than 95% of the group’s business for the first 6 months of FY99. OUTLOOK: The HDD industry is an ultra-competitive industry with constantly eroding margins. However, in terms of world-wide unit shipment, the industry has shown annual growth of 14% between 1997 and 1999 and the rate of growth is expected to continue to 2002. Unisteel, a licensed manufacturer of trademarked models of fasteners such as Torx, Torx Plus, Trilobular (TAPTITE) and REMFORM fasteners and a licensed user of Camcar’s trademarked CAMTRONIC and its own Unitronic material for the production of anti-galling fasteners, should be able to enhance its share of the precision fasteners’ market. The group has increased its production capacity from 373 million fasteners in 1998 to 643 million in 1999. In Jan 2000, the group added another 10 Heading and 12 Rolling machines, which will allow the group to further increased capacity by another 15% to meet anticipated needs as the disk drive industry recovers. The group has undertaken to offer more value-added services such as AQ cleaning. Such added services along the value chain will allow the group to maintain its margins. Main Customers: (1st Half FY99) Seagate 36% Western Digital 39% Maxtor 22% Others 3% |
| (Post 7 of 1301) 03/22/2000.11:52:00 |
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old email from broker...but still valuable for archive We are recommending a SUBSCRIBE for Unisteel Technology Limited. The commpany is expected to ride on the growth of the HDD industry. We see some upside for Unisteel from its offer price. At PER of 14.2 times, the IPO is valued below comparable suppliers in the Hard Disk Drive (HDD) industry. According to BARRA, MMI Holdings Ltd is currently trading at a forecast PER of 17.4 times, while Brilliant Manufacturing Ltd is trading at a forecast PER of 16.7 times. Growth in the HDD industry The HDD industry is set to grow by 15% annually up to 2002, according to DISK/TREND. Unisteel is expected to benefit from the growth in the HDD industry as it is a major supplier of fasteners used by Seagate Technology Inc., Western Digital Corp and Maxtor Corp. globally. Seagate, Western digital and Maxtor together control about 45.9% of the global HDD market. This is expected to benefit Unisteel’s fastener business. As such, Unisteel plans to increase its production capacity by at least 50% from its current output of 1.2 billion fasteners annually. High profit margins Unisteel has enjoyed high profit margins, even though the manufacturing of fasteners belongs to the lower end of the HDD value chain. Pretax profit margins increased from 0.6% in 1994 to 27.1% in 1999. Steel prices will increase slightly The decline in steel prices over the past four years has enabled Unisteel to increase its profit margins. In 1999, steel prices constituted approximately 40% of Unisteel’s production costs. Most industry experts feel that the price of steel has bottomed out due to Asia’s economic recovery. However, the emergence of new steel production capacity will help to ensure that steel prices does not return to the previous high levels seen in 1994, according to BHP Steel Asia Pte Ltd. As such, Unisteel could see a slight decline in its future profit margins. Risk of price erosion Price erosion in the HDD industry could affect Unisteel because it lacks bargaining power. This is the case as Unisteel relies on Seagate, Maxtor and Western Digital for 97% of its sales. Meanwhile, Lih-Ta and Takumi supplies 90.5% of the fasteners and raw materials used by Unisteel. Higher value products and more customers To cope with the intense competition in the industry, Unisteel plans to expand into higher value added activities. Its R&D efforts have paid off with the Unitronic anti-galling fastener material. It has the license from Textron to manufacture the Torx, Torx Plus and Camtronic range of high precision, high tolerance fasteners. Unisteel is also providing aqueous cleaning services for its customers. Expanding its customer base Unisteel is expanding its customer base beyond the three big HDD manufacturers. Since 1999 Q4, Unisteel has added Hewlett-Packard, Motorola, Omni Industries, Shimano, Schneider, D&B Holding and Venture Manufacturing as its customers. The new clients are involved in the computer, consumer electronics, telecommunications and transportation industries. About the IPO Unisteel is offering 48.1 million new shares at SGD0.50. A total of 9.6 million shares are being offered to the public at SGD0.50 each. Another 38.5 million shares are being placed out, including 33.7 million placement shares at SGD0.50 each and 4.8 million shares reserved for employees and an Independent director of the company at SGD0.47 each. The IPO closes on 22 February 2000 at 12pm. The IPO commences trading on a ‘when issued’ basis on 24 February 2000 at 9am. Out of the total net proceeds of SGD23 million raised, SGD7 million will be used to repay bank loans (including SGD2.6 million to repay a term loan from UOB), SGD1 million will be used to acquire plant and machinery, while the remaining SGD15 million will be used for working capital to finance Unisteel’s growth and for business expansion. UOB is the underwriter for this IPO. About Unisteel Unisteel is a manufacturer and supplier of precision fasteners to the hard disk drive, computer, consumer electronics, telecommunications and transportation industries. Its main customers include Maxtor, Seagate and Western Digital. Unisteel also provides aqueous cleaning services. Unisteel’s turnover increased from SGD7.3 million in 1994 to SGD25.7 million in 1999. Unisteel’s pretax profit increased from SGD0.05 million in 1994 to SGD7.0 million in 1999. |
| (Post 8 of 1301) 03/22/2000.14:27:00 |
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UNISTEEL - have another look... Unisteel Technology Ltd., a manufacturer of computer and consumer electronics parts, is poised to make a comeback after a disappointing debut on 24th February, when it dropped below it IPO price of 50c. As a provider of precision fasteners, a key component that secures parts in hard disk drives, Unisteel is well-positioned to ride the growth in disk drive shipments. DiskTrend, an international research firm, predicted that worldwide demand for hard disk drives will grow 15% each year until 2003. Unisteel is in the right industry and there will definitely be huge interest in it, where the enthusiasm for Unisteel shares will be driven by the recent turnaround in personal computer demand globally after Y2K jitters subsided. Research indicates that Unisteel's share price can rise to between 59c and 69c, or between 65% and 90% from current levels of 36c. Unisteel has a number of competitive advantages in its industry. For one, Unisteel's top three customers, Seagate Technology Inc. (SEG), Western Digital Corp. (WDC), and Maxtor Corp. (MXTR), enjoy a combined worldwide market share of 46%, and these major customers contribute to 97% of the company's revenue. There is a growing trend among MNCs to consolidate their supplier lists via accreditation. While the disk drive industry in Singapore has been in the doldrums over the past year because MNCs like Western Digital moved operations to lower-cost Asian countries, declining disk drive shipments from Singapore shouldn't pose a problem for Unisteel. Reason? International disk drive manufacturers, driven by falling PC and disk drive prices, have been forced to consolidate their suppliers, and Unisteel, a leading worldwide supplier that provides 60% of its top customers' fasteners needs, will benefit from this growing trend, at the expense of its smaller competitors. Although the production of fasteners isn't a specialized field, the company has received a 10-year license to produce a patented hard disk drive screw. That effectively puts up a barrier to entry for potential competitors, and firmly seals it customers reliance upon their services. Another concern for the disk drive industry - a shortage of Pentium 3 chips - isn't likely to affect Unisteel. The clog in production for PCs due to the shortage will affect the high-end PC production. But Unisteel, which produces for all levels of disk drives, should emerge relatively unscathed. Unisteel reported a net profit of S$5.1 million in 1999, compared with S$2.5 million in the previous year. Analysts project that net profit will surge to S$8.8 million in 2000. Optimism for the company's future earnings is fueled by Unisteel's strategy to move its manufacturing downstream as it focuses on the higher-end telecommunications industry. The company will begin its fastener supplies to Motorola Inc. (MOT) and Hewlett-Packard Co. (HWP) in the fourth quarter of 1999, Unisteel reported in its IPO prospectus. Besides telecommunications, Unisteel has an eye on the bicycle manufacturing market as well. Unisteel said in the prospectus that it has started to supply fasteners to Shimano Inc, a leading Japanese bicycle maker. This diversification of Unisteel's customer base will help lessen the company's exposure to the hard disk drive industry, which traditionally has sharp cycle swings. Bicycle production is more stable, and therefore have predictable sna steady long-term customers. |
| (Post 9 of 1301) 03/24/2000.10:14:00 |
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Unisteel Recently listed Unisteel has fallen below its IPO price of SGD0.50. Unisteel is the least likely target for price-cutting measures by the HDD makers. Unisteel is a major supplier of fasteners for the HDD industry. As a result of the decline in steel prices in recent years, Unisteel has enjoyed high profit margins for a non-perishable, high-turnover product. However, since fasteners constitute only a small proportion of cost in the HDD, the HDD makers are unlikely to target fasteners as part of its initial cost-cutting measures. Hence, its margins is less likely to suffer from price erosion. JM Sassoon has also placed a fair value of SGD0.63 for the stock. |
| (Post 10 of 1301) 03/24/2000.13:41:00 |
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For all who are interested in Unisteel... Unfortunately too little data to perform any analysis...  |
| (Post 11 of 1301) 03/24/2000.13:58:00 |
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Oppps, Sorry, forgot to add that I got no vested interest and this is not an indcucement to buy... Personally, I wouldn't (yet) cos the volume is very low... 2 sen worth |
| (Post 12 of 1301) 03/28/2000.05:23:00 |
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Unisteel Technology Ltd 1999 net profit 5.090 mln sgd vs 2.509 mln Unisteel Technology Ltd 1999 results: Net profit - 5.090 mln sgd vs 2.509 mln Sales - 25.726 mln sgd vs 15.693 mln Opg profit - 6.971 mln sgd vs 3.470 mln Final div - nil vs 6.05 pct |
| (Post 13 of 1301) 04/19/2000.09:26:00 |
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Unisteel - 0.345 A grossly under-valued stock. Research indicates that Unisteel's share price can rise to between 59c and 69c, or between 65% and 90% from current levels. Unisteel reported a net profit of S$5.1 million in 1999, compared with S$2.5 million in the previous year. Analysts project that net profit will surge to S$8.8 million in 2000. Optimism for the company's future earnings is fueled by Unisteel's strategy to move its manufacturing downstream as it focuses on the higher-end telecommunications industry. |
| (Post 14 of 1301) 04/24/2000.02:32:00 |
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UNISTEEL TECHNOLOGY LTD Notice Of Changes In Director's Shareholding . Name of director: Wang Jang Chon Date of notice to company: 20/04/2000 Date of change of shareholding: 20/04/2000 Name of registered holder: Wang Jang Chon Circumstance giving rise to the change: Open market purchase No. of shares of the change: 59,000 % of issued share capital: 0.03 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 52,000 @ $0.37 7,000 @ $0.375 No. of shares held before change: 93,808,000 % of issued share capital: 48.75 No. of shares held after change: 93,867,000 % of issued share capital: 48.78 No. of Warrants: Nil No. of Options: Nil No. of Rights: Nil No. of Indirect Interest: Nil Submitted by Lim Bee Lian Eliza, Company Secretary on 20/04/2000 to the SES |
| (Post 15 of 1301) 04/24/2000.02:32:00 |
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UNISTEEL TECHNOLOGY LTD Notice Of Changes In Substantial Shareholding . Name of substantial shareholder: Wang Jang Chon Date of notice to company: 20/04/2000 Date of change of shareholding: 20/04/2000 Name of registered holder: Wang Jang Chon Circumstance giving rise to the change: Open market purchase No. of shares of the change: 59,000 % of issued share capital: 0.03 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 52,000 @ $0.37 7,000 @ $0.375 No. of shares held before change: 93,808,000 % of issued share capital: 48.75 No. of shares held after change: 93,867,000 % of issued share capital: 48.78 No. of Warrants: Nil No. of Options: Nil No. of Rights: Nil No. of Indirect Interest: Nil Submitted by Lim Bee Lian Eliza, Company Secretary on 20/04/2000 to the SES |
| (Post 16 of 1301) 04/24/2000.02:55:00 |
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UNISTEEL TECHNOLOGY LTD Notice Of Changes In Director's Shareholding . Name of director: Toh Bee Yong Date of notice to company: 19/04/2000 Date of change of shareholding: 19/04/2000 Name of registered holder: Toh Bee Yong Circumstance giving rise to the change: Open market purchase No. of shares of the change: 61,000 % of issued share capital: 0.032 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 43,000 @ $0.36 16,000 @ $0.365 2,000 @ $0.37 No. of shares held before change: 50,512,000 % of issued share capital: 26.25 No. of shares held after change: 50,573,000 % of issued share capital: 26.282 No. of Warrants: Nil No. of Options: Nil No. of Rights: Nil No. of Indirect Interest: Nil Submitted by Lim Bee Lian Eliza, Company Secretary on 20/04/2000 to the SES |
| (Post 17 of 1301) 04/24/2000.02:56:00 |
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UNISTEEL TECHNOLOGY LTD Notice Of Changes In Substantial Shareholding . Name of substantial shareholder: Toh Bee Yong Date of notice to company: 19/04/2000 Date of change of shareholding: 19/04/2000 Name of registered holder: Toh Bee Yong Circumstance giving rise to the change: Open market purchase No. of shares of the change: 61,000 % of issued share capital: 0.032 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 43,000 @ $0.36 16,000 @ $0.365 2,000 @ $0.37 No. of shares held before change: 50,512,000 % of issued share capital: 26.25 No. of shares held after change: 50,573,000 % of issued share capital: 26.282 No. of Warrants: Nil No. of Options: Nil No. of Rights: Nil No. of Indirect Interest: Nil Submitted by Lim Bee Lian Eliza, Company Secretary on 20/04/2000 to the SES |
| (Post 18 of 1301) 05/08/2000.11:02:00 |
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Dennis, Copied your posting here for further discussion: -------------------------------------------------------------------------------- By Dennis_dozen on Monday, May 8, 2000 - 10:11 am: Mossie, million thanks for your info You're always so selfless in sharing....in fact I was drawn to SI becos of people like u...of course there're many others..I don't want to list them as I may inevitably offend some of the forumers if I omitted them.... I'll defintely do some homework on Pertama....plus UNISTEEL seems interesting too...I'll dig in for more info b4 sharing, or perhaps u have any comments/infor on UNISTEEl to share? Cheers! ----------------------------------------------------------------- Judging by the way the major shareholder has been buying stock, is he giving us signals to heed? Just got a copy of the companies latest 99 annual report over the weekend, and it reads well. Good sales growth, EBIT was up a sizeable amount, company commands decent market share in the fasterners market in Asia, especially in the HDD sector. Seagate's announcement today they see good growth coming 5 years portends well for UniSteel. Company balance sheet is robust, minimal debt and mostly for working capital (which means healthy biz prospects) and they have a clutch of quality patented products that should give them an edge in the marketplace. There are other good posting here for you to peruse and study. Maybe you could share your finding here for all to benefit? |
| (Post 19 of 1301) 05/08/2000.11:16:00 |
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Warren, I hav consulted Willylim for opinions on Unisteel and thought his comments may be useful here.....Copied from Willylim's Homepage.... -------------------------------------------------------------------- By Carol on Saturday, April 29, 2000 - 02:43 pm: Willylim, I think there's one company that you have overlooked for inclusion in your list of investments.....Unisteel..probably because it is a new IPO....with only 4 years of earnings to look back on. Do take a look and let me know what you think please. I already have it in my portfolio, bought it @ $0.36 when others were selling; lowest was $0.335, highest $0.49, IPO $0.50 (24/2/00). I think the lack of interest in this counter could probably be due to its link to the HDD business, which as you know, has been in the doldrums. It may be of interest to note that, recently, the chairman and CEO have been buying. Chairman Wang has bought 374 lots so far ranging from 37-39 cents....making his holdings 48.94%. Thanks. ----------------------------------------------- By Willylim on Saturday, April 29, 2000 - 03:28 pm: Hi Carol, The most important factor in finding a so-call "Buffett company" is a sustainable consumer monopoly. This is the single most important criteria upon which all other factors like increasing earnings, high ROE etc lies. Unisteel, while having high earnings, high margins and high ROE, can only be called a promising growth stock. I cannot identify any factors that will give it a sustainable advantage if let say another similar firm pops up selling the same stuff at a lower price. It is thus not a consumer monopoly as price is the single most important factor in determining whether a customer will buy its products. Its margins will be quickly eroded as competition increases. On further inspection, Unisteel has a weak balance sheet for the past 4 years. Each year, its total liabilities is greater than its shareholders' equity. This is dangerous because in case any bad things happens and Unisteel is forced to pay up its debt, the entire shareholders' equity is not even enough to cover the debt! The writeup I've found in "SHARES Investment - facts and figures" says "Co will use $7m to repay bank loans and $1m to acquire plant and machinery". If every few years, it needs to replace its machinery just to stay in business, there goes your shareholders' equity. When that happens, the Co will probably issue warrants, bonds, all sort of funny things for investors to chase. My take on this is to take profit when the market sentiment is better. -------------------------------------------------- By Willylim on Saturday, April 29, 2000 - 03:37 pm: Carol, Forgot to mention that the high ROE of Unisteel is deceiving because it obtains it by "debt-padding". See here for the discussion. link --------------------------------------------------------------------------- |
| (Post 20 of 1301) 05/16/2000.09:32:00 |
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JF background info on UNISTEEL at time of IPO: It is the major supplier to all three of the major disk drive manufacturers in Singapore i.e. Seagate, Maxtor and Western Digital. The three companies account for 97% of Unisteel’s turnover. Basically, Unisteel manufactures and supplies the higher specification screws that go into the hard disk drive. These fasteners need to be electro-polished to minimise the chance of particles being deposited on the HDD media, thereby avoiding a disk crash. HDD manufacturers are extremely specific about the types of fasteners that are used for their drives. Towards this, Unisteel has specific licenses, such as TORXâ, TORX Plusâ and Camtronicâ, to produce these types of fasteners that can go into the drive. This licensing requirement also provides an entry barrier into the business. The outlook for the HDD industry is good. The industry is in a cyclical upswing due to the boom in demand for computers. DiskTrend estimates that shipments for HDDs will grow by a CAGR of 15%p.a. to 2002. Unisteel is also to some extent protected by the woes of the HDD industry as they are protected from price fluctuations from oversupply of the finished products. Unisteel also recognises its reliance on the HDD industry, and is diversifying its business to more other customers and other industries such as telecommunications and consumer electronics. |
| (Post 21 of 1301) 06/12/2000.16:44:00 |
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 From chart, can see that the 15 days MA is the resistance level which it had great difficulty breaking it. From the time i posted this chart, it had already broke the immediate support at 0.34(a weak one), Now we may see it going down to 0.33 follow by 0.325 which is very important. Even the 3 days MA has started to head that level. My conclusion, it may now be in a trading range with support at 0.325 and resistance at 0.36. Any comments on my humble TA cos i am new to it. Regards |
| (Post 22 of 1301) 06/21/2000.21:09:00 |
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Just to update on the TA again! From TA, Unisteel maybe trying one more time to hit past 0.34 again. It had tried for the past 2 days but just that the price and vol are not together to break the resistance. After hitting the low of 0.325 on 13/6, some accumulation were seen on 13/6 & 14/6 (vol hit 100+ compare to 20days avg. It is sitting very comfortable on the support (0.325). RSI shows that the uptrend is still intact. Stochastic also shows that it is moving lower and may soon hit a crossover and hopefully, it can provide some room for the price to move higher. Any comment on my humble TA? Pls correc me if i am wrong...  |
| (Post 23 of 1301) 06/23/2000.02:23:00 |
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TA chart. Going by point explaination with the points marked out on the charts for easier understanding. Comments? 1.Strong support at 0.325-0.33 tested 3 times and still holding. 2.Price has cut above the 20day MA few days ago. Just cut above the 30day MA too abt 2 days ago. Bullish sign 3.Momentum indicator cautions us to be wary though as there is chance of a downside. Refer to point 1. 4.RSI has been edging up slowly. Current reading of 42.7, hopefully it'd break the neutral reading of 50. If so it would mean very positive signs for this counter.  Conclusion: Low volume allows good chance for accumlation. Low volumes tend to signal end of a bear and start of a bull. Though it must be noted that this counter seems to have very little activity. Fundamentals: Currently trading at PER of 12.7 Increasing Profits last 4 years, and nice numbers for their Returns On Equity. Though do remember the pitfalls of ROE, they might have borrowed alot thus resulted in high ROE. -------Profits ROE 1996- $0.5mil 22.51% 1997- $3.5mil 50.32% 1998- $2.5 27.46% 1999- $5 50.88% haha don't ask me why their profits are in such small numbers. But its the ROE that counts right. =) Facts shown. Vested interest thanks to anytime telling me abt this counter enabling me to check it out. So do take my TA readings with a pinch of salt. I might be biased coz of vested interest. |
| (Post 24 of 1301) 06/23/2000.10:08:00 |
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Just my opinion... Looks like a descending triangle might form from the line graph... i personally haven't seen the charts for Unisteel but only from the ones posted here in recent memory.. Descending triangles are formed with share price hitting the same support line and then rebounding, with each rebound weaker than the one before.. if you take a look at your charts, the rebound has already happened twice. if the 3rd time it fails to break out, the bearish descending triangle may well be on its way to fulfillment. The slight bullish convergence on the RSI is of no comfort to me really. Chart formations are usually first in priority before indicators.. Just my 2cts No vested interest.. but losing money still. oh well.. |
| (Post 25 of 1301) 06/23/2000.13:40:00 |
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Eh joshing I missed out that descending traingle formation. Argh... Though price has broken out of that triangle, it broke out as the triangle is filled. =( Hmm...take comfort with price above the MAs? =) |
| (Post 26 of 1301) 06/29/2000.15:24:00 |
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Seems like breaking out? Any comments Alfiee or Joshing? |
| (Post 27 of 1301) 06/29/2000.15:38:00 |
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Yes nice breakout even in the face of bad breath in the market. =) Trade cautiously though. Might be losing steam. Would try to post a chart when I get back for those interested. Vested interest. |
| (Post 28 of 1301) 06/29/2000.16:23:00 |
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Folks, I last heard that they are announcing good set of results in 4-5 days time. that is why the stock run up from 0.385 to 0.405 in less than 15 minutes time. I took the rumour and came in 10 lots at 0.385...hopefully to contra and thus don't have to pay...also to make some money to cover my other major losses... vested interest...and praying! happy trading to all. |
| (Post 29 of 1301) 06/29/2000.18:05:00 |
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Thanks for the info Bun, but where did u get that info from? Would like to further check it up. =) Vested interested @0.3375 average. =) Anytime: Hoped that you got in at good prices too since you were the one who told me abt this counter to check up TA on. (Don't see u on irc anymore.) |
| (Post 30 of 1301) 06/30/2000.08:56:00 |
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Oops, apparently the news came from my friend's broker and she always gives very "reliable". However, pls note that it is for short play only (that means quickly earn/loss and go!). The other time she said to buy Ossia at 0.85 because will go to $1 but we didn't believe...well, Ossia went to $1.15... I think she know some syndicates and they told her that they are playing this stock UP. With the Dow fall by so much yesterday...I wonder what will happen today either. Just hope that I won't loss money again. |
| (Post 31 of 1301) 06/30/2000.09:12:00 |
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Alfiee, any idea where would the resistances be at and when would you take profits? |
| (Post 32 of 1301) 06/30/2000.10:12:00 |
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Hi Lurker, I know you are not asking me...but how about taking profit at 0.48 - 0.50 depending on your comfort level. I bot 10 lot at 0.385 so I might consider throwing at 0.45. Not very greedy. Lost quite a bit in stock market and still holding on to a lot of loss making counters. Just my opinion. good luck & cheers! |
| (Post 33 of 1301) 06/30/2000.10:50:00 |
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Bun: Thanks for the info. =) No offence but I don't listen to tips or rumours. =) hehe no matter how "reliable" the information is. Hmmm maybe i can try digging up information by calling their company registar or something as adviced by Manx. Wish you good luck punting this counter. Lurker: Sorry lurker I believe I mentioned posting a chart yesterday but forgot. Well sold out my holdings at an average of $0.4125 Gave me a net profit of 20.2% so I'm pretty happy already. I sold out because the RSI and Momentum indicators were in overbought lvls at yesterday's price of $0.40. Not much confidance that it would rise that much further unless maybe it shows a good report like what bun said. Furthermore Unisteel is currently 1 of the top20 active stocks now. I prefer to buy at low volume and sell at high volume into strenght. As for resistance, there isn't anything on the charts that hint me what resistance of this counter would be. So for that I have no idea. Its up to the market I guess. TA has its limitations I guess. =) |
| (Post 34 of 1301) 06/30/2000.11:59:00 |
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Hi Alfiee, Glad that you have make a 20% profit out of it. As for me, i am still monitoring since i got it quite cheap. I feel that "invisible hand" may have got in at around 0.405 ~ 0.425 level with it's "high" vol around that range. Think they may not let it drop below that level as this morning, the counter was pushed to 0.445 from 0.425 within mins. Thus, hope i can enjoy the ride with them..... From TA, i agree that RSI & Stochastic are not looking good. Both RSI & Stochastic are heading towards overbought region. As for resistance, i myself also can't find any resistance to break as ever since it listed, it took a merely 20 days to drop from 0.50 to 0.425. 0.425 is the immediate support. If break, 0.40 will the the next support. Hope i am correct. Any comment? |
| (Post 35 of 1301) 06/30/2000.12:59:00 |
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Hi Alfiee, No problem. I don't believe in rumours either. Just speculating. Hope to make some money to cut down on previous losses. Just thot of sharing in the forum, that's all. Hope to let some others like me who lost money, average down. Of course, no guarantee winnings though, depends on luck! Cheers / Bun  |
| (Post 36 of 1301) 07/01/2000.18:15:00 |
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Bun, Just to say I heard the same rumours (though i don't believe in it like everyone else here). Thought of posting the Ossia rumour initially but it would look silly at that time. Now rumour says Unisteel will go up to $0.50. No vested interest, just enjoy watching.. |
| (Post 37 of 1301) 07/02/2000.02:36:00 |
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Well noting that this counter is fundamentally sound. $0.50 shouldn't be too much a problem for it to hit. But TA wise I'm not too optimistic of it currently and I wouldn't buy at such prices now. Anytime: Hehehe not trying to talk the stock down but just stating my opinion. =) Here's the chart. 1.This resistance line draw was broken abt a week back and it was where some of us starting accumlating. =) Bought mine on 21 July using the MA as buying signal. 2.For support, I can't seem to deduce any such support trendlines currently so for support I guess using the 10day MA or 20day MA should prove sufficient. Should price cut below the 10day MA, it should signal selling bells. Price cutting down the 20day MA would merely confirm the bearish signal. 3.Momentum indicator reaching high. Be cautious of turnabout. 4.RSI has moved into the overbought region. Though its still possible for this stock to move up further, I would prefer not to take this chance when the odds are against you.  Conclusion: Since the breakout of the resistance trendline this stock has surge quite a bit. Though further runup is still possible. Especially if this stock turns out a good quarter report.However with momentum and RSI indicator giving warns of any more price increase to be less likely now. I've sold out already. Two reasons made up my mind, 1) Would I buy this stock at current price? No 2)It was one of the top20 most active stock and I prefer selling into strength. Not an inducement for others to sell as no key reversal day has been signaled by the bar chart yet. I was just being cautious and careful with my first big profit. =) Anytime: No idea where support is. Like mentioned above. Just using the 10day MA for support line. Anyways good luck with this stock. Guess I'll be kicking myself if it surges anymore heh. ;) |
| (Post 38 of 1301) 07/03/2000.13:11:00 |
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Hi Alfiee, Would like to know from where u get this nice chart.....BTW...will this counter pass 0.50c. |
| (Post 39 of 1301) 07/03/2000.19:54:00 |
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Hi Money010, Sorry for being busybody, Alfiee got the chart from MetaStock... Alfiee: Actually, for the time being, Unisteel will still be in my MT portfolio list. I will monitor the overall market very closely and if i sense any negative sentiment, i will not hesitate to offload all my holding even at a loss. |
| (Post 40 of 1301) 07/03/2000.20:56:00 |
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Hi Anytime, U're not been busy body....thanks for the info...BTW where can I get the MetaStock ? Is it fm any web site? Pls adivse. Thanks. |
| (Post 41 of 1301) 07/05/2000.22:34:00 |
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Waga2, Yes, thanks for clarifying. The MD is running the show in S'pore but he recently employed a GM. The GM is also a Director but not an equity holder. One correction, the MD holds 24%. So his stake is not considered a minority. I must admit that I didn't have any good impression until I met the GM in a social gathering. Then I saw the results. Company turned over $25m with $6m net profits all a result of selling fasteners. Didn't realised that making fasteners for HDD industry required such precise manufacturing processes. Hence, their high margins. ************************************************ You wrote, I briefly remember Unisteel was Taiwanese controlled and the prime-mover of the business was its MD, rather than its GM. The MD is a Singaporean and a minority shareholder. Unisteel is a precision parts maker. Its growth can be considered as trememdous, judging from its rented workshop to its present factory at Loyang. This new start-up looks promising, as with any new start-up's, however, have not placed any bets yet and have since not looked at Unisteel. Hope these little past fact sheet help. |
| (Post 42 of 1301) 07/05/2000.22:53:00 |
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Dear Mossie Yes, HDD requires precision engineering. One complain I ever cited of their Loyang factory was its clean room, which the management claimed was certified to class 100K. The construction of that room did not suggest to me it "was" of 100K standard, anyway, that's not important to me because I do'nt represent Seagate or Quantum. "Minority" compared to its major Taiwanese shareholders was what I meant. Sorry for that confusion. |
| (Post 43 of 1301) 07/05/2000.22:56:00 |
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Mossie  Thank you!  |
| (Post 44 of 1301) 07/11/2000.11:47:00 |
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Found this on theSTreet.com. Suggests that the HDD is not dead. Related to Unsteel. They provide up-stream products fro HDD:fasteners. More demand for HDD, more demand for upstream products like fasteners. ************************************************ The Wired Investor: Gimme Storage Three ways to play the data hardware sector. Adam Lashinsky Not so long ago, if you wanted to invest in computer storage you were limited--unfortunately--to disk-drive stocks. Maybe that's why the sector was a dead end for so long. Companies like Quantum, Western Digital, and Maxtor were (and still are) boring: a group of cyclical, commoditized, low-margin disappointments that have cost shareholders money. Well, it's time to stop equating storage stocks with losses. The sector has made a stunning comeback in the hearts and wallets of investors, and the transformation is due to ... what else? The Internet. As consumers and companies send meatier and more complicated files around the Net--from movie videos to the latest Metallica MP3--the needs for storage are exploding. Consequently, America is adding computing storage the way it added file cabinets and computing power decades ago. Advertising software provider DoubleClick, for instance, says that its storage needs now grow by 250,000 megabytes per day. (Three digital photos take up about one megabyte.) And data mining--culling accumulated information on consumers to sell them products more effectively--requires firms to save still more data bytes. "Companies used to look at what people bought," says John Roy, an analyst who follows the storage industry for Merrill Lynch in New York. "Now they look at what people considered buying too." Roy estimates that corporate storage needs are growing by at least 70% per year. That's all well and good. But the technology is changing so fast that it's tough for investors to stay ahead. Most companies now store their data on the main servers. The coming trend is to link stored data to the company's local network, making it available anytime, anywhere to users. The rush to cash in on that development is giving rise to a host of new firms, even as established ones horn in on the growing market. So if you're thinking of investing in storage stocks, consider three approaches, based on your tolerance for risk. First, you could buy EMC, the market leader. A second, riskier approach is to buy shares in the contenders to EMC's throne. Or third: Bet on some of the new-technology upstarts. While most of these companies will flame out, the few that survive are likely to soar. The king of storage. Already people are saying that no one gets fired for buying EMC. Sound familiar? It should. EMC is the IBM of its generation and industry. The Hopkinton, Mass., giant (1999 sales: $6.7 billion; recent market cap: $150 billion) supplies expensive, high-performance storage systems and is famous for its hyperattentive customer service. It has the business of corporate America seemingly locked up--nearly one in four U.S. firms stores data on its equipment, according to IDC--and is the company every would-be competitor is gunning for. When Sun announced its latest storage strategy in June, for example, it cast its plans in terms of how it will compete against EMC (smaller, cheaper boxes vs. EMC's powerful but pricey fridge-sized units). "We expect EMC to reign as the king of enterprise storage for the next three years," says Merrill Lynch in a recent report. The message to investors: Unless EMC starts failing corporate America, it's unlikely to fail Wall Street either. The contenders. EMC's Achilles' heel is that its systems are primarily attached to servers, a perfect solution for corporations that simply need to store loads of data in dim, well air-conditioned backrooms. But the future lies in being able to move the data around. That's why Network Appliance looks strong right now. Its equipment specializes in making stored data accessible to everyone on a company's local network. Based in Sunnyvale, Calif., Network Appliance is hands down the leading candidate to supplant EMC, but it's not the only one. As I noted above, Sun--as well as Hewlett-Packard, IBM, and even Cisco--wants to adapt its storage technology so that people can get data when and where they need it. The speculative plays. Some companies are also developing so-called storage area networks, or SANs. These are custom-built systems designed specifically to store information. As storage demands keep growing, some businesses are opting to start from scratch rather than adapt an old server network--like building a new house instead of renovating. The leader in SANs is Brocade Communications, which boasts a $16 billion market cap on 12-month sales of only $155 million. "SANs have hit the mainstream," brags Brocade CEO Gregory Reyes. Well, maybe not yet. Merrill Lynch estimates that 92% of the storage market in 1999 was still connected to servers, not networks. Still, as Brocade flexes its muscles, a host of other companies are recognizing the opportunity and stepping up to compete. One example: the delightfully named McData, an EMC storage-area-network spinoff that's planning to raise up to $100 million in an upcoming IPO. I can hear the sales pitch now: "Would you like to supersize that storage network?" Adam Lashinsky is the Silicon Valley columnist for TheStreet.com. Issue date: July 10, 2000 Vol. 142, No. 2 |
| (Post 45 of 1301) 07/11/2000.14:10:00 |
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 Price seems to be holding well after the recent surge. Immediate support is at $0.41 (10 dma). Vested interest from today (0.41) for trading only. |
| (Post 46 of 1301) 07/11/2000.14:13:00 |
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| (Post 47 of 1301) 07/11/2000.19:30:00 |
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Unisteel is moving forward with value added services and technologies such as an alliance with Japan's Takumi for electro-polishing of screws to meet high quality standards for high-end HDDs and aqueous cleaning services for components. Unisteel is diversifying their HDD customer base as they now have a full range of products and services to meet all requirements in the industry.Their sales and earnings look to be at record levels in 2000 and their profit margins are stable in the HDD market and only marginally lower in the new non-HDD markets. On a traditional valuation basis, Unisteel looks very attractive. Keep a watch on this counter, good time to accumulate.... |
| (Post 48 of 1301) 07/11/2000.19:30:00 |
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Unisteel is moving forward with value added services and technologies such as an alliance with Japan's Takumi for electro-polishing of screws to meet high quality standards for high-end HDDs and aqueous cleaning services for components. Unisteel is diversifying their HDD customer base as they now have a full range of products and services to meet all requirements in the industry.Their sales and earnings look to be at record levels in 2000 and their profit margins are stable in the HDD market and only marginally lower in the new non-HDD markets. On a traditional valuation basis, Unisteel looks very attractive. Keep a watch on this counter, good time to accumulate.... |
| (Post 49 of 1301) 07/12/2000.09:25:00 |
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Some more articles about the resurgence of HDD use. ************************************************ Storage needs grow outside of the PC Dennis Waid Peripheral Research Over the past two years the markets for data storage have been quite sluggish. That hasn`t affected the technology, though; which is moving ahead at an astonishing clip--60% annually as represented by areal density. This has dropped the cost of storage to roughly two cents per megabyte (a decade ago, it was around $11/MB), which has opened the doors to many new markets. Although these markets are relatively small today, they will expand rapidly. By 2002, they could account for as much as a fifth of the disk drive market. The new applications for low-cost storage include GPS systems, digital cameras, TV set-top boxes, gaming machines, automobile mapping systems, home automation systems, laser printers, and, last but not least, the Internet. By 2002, this non-PC world will represent about 65 million units. Over half of these devices--some 35 million--will feature some form of rigid disk drive. The rest will rely on compact flash or flexible disk drives to store data. Let`s focus on three: digital cameras, laser printers, and set-top boxes. The market for digital cameras is just emerging, though most of the traditional camera manufacturers (e.g. Sony, Kodak, Sharp, and Olympus) offer digital products today. SanDisk was the first to open the door to the broad possibilities of digital photography with its compact flash cards. Then came flexible disk drives, and, more recently, rigid disk drives. The latter category is represented by IBM`s 1-in "microdrive". Cost and ease of use are driving factors in camera applications. Sony`s 3.5-in flexible disk drive package is probably the easiest to use as the diskettes can be inserted directly into a PC or printer; however, it doesn`t have much storage capacity and is relatively slow. Compact flash memory is supported by about 70 camera models, and is the most common digital storage device on the market; however, it needs a converter to interface with a PC in most cases. The high capacity, low cost, and portability of IBM`s microdrive should help it win over some camera buffs down the road. PRINTING MEMORIES The laser printer has been a primary part of the computer industry since the early 1980`s, when Hewlett-Packard introduced its "laserjet" series. Here, technology presents a dilemma. High- resolution color graphics have created a system bottleneck, requiring a considerable amount of data handshaking (and time) to print complex, 1200 x1200 dots-per-inch color graphics. Within the past two years, some printer manufacturers (e.g., NEC and HP) ha |
| (Post 50 of 1301) 07/13/2000.16:11:00 |
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Folks, I have decided to initiate buying of Unisteel. My average cost $0.414. Again, this is not an inducement to buy. I am just hoping to share my approach here as I do elsewhere on SI. Recap, whenever I choose to buy a counter, there are certain criterias the stock must satisfy. I go through a line of thought & probing. Let me use a Q&A format to illustrate for a change. (1)Is it at basement prices? The company IPOed at 50cts in Feb2000, offering 48m new shares to the public. Current price is now at 42cts. Inspite of its price FALLING below IPO price, the earnings have grown by 202% on a growth in turnover of 64%. Technically, the stock is making "w" formation, registering low of 32cts in June 2000 and a high of 46.5cts in Mar2000. Within the high and low, 88m shares have changed hands. Other words, almost all of his offer shares of 48m have been turned over within a tight price range. This signifies to me that IH is tightening up the float. (2)Why has the stock fallen below IPO? I can only guess that the market has thrown the baby out with the bath towel. 95% of the sales turnover comes from the hard disk drive industry (HDD). Thinking that HDD is in the doldrums, they have sold down every stock, including Unisteel, that has been associated with the sector. Cyclicals fascinate me and they grab my attention. Every 18 months, one disfavoured cyclical sector like HDD becomes favoured in the next up-cycle. All I need to do is to be a contrarian. I like a sector when the market hates it, and hate the sector when the market loves it. This leads me to my next question. (3)Is the HDD sector going to die and fade away? My answer, no way! HDDs are the cheapest way to store data. Pls read the earlier two articles posted on this thread. The Internet has, in fact, created greater applications from HDD to include set-top boxes, digital cameras etc. (4)Then why buy Unisteel and not say, Seagate or Western Digital? The unit price of HDDs (currently USD$50) are falling but unit volumes have increased. On average, each HDD requires 20 screws. Their average cost taken together equal USD$0.50 or 1% of a HDD unit. When the Seagates (and others) face lower unit prices, they will prefer to squeeze large cost components like the base plate makers than the fastener makers that make up a mere 1% of the HDD unit cost. Unisteel has been seeing higher volume sales. (5)Then what the barriers to entry? Can others come in and take their market share? Unisteel is one of a select group of fastener makers in the world that make fasteners for the HDD industry. The fasteners require certain qualities that distinguish themselves from normal fasteners. They must have anti-galling qualities that prevent the kicking up of dust when the screws are fastened between two metal sheets. They also need to be electro-plated to create smooth surfaces and reduce friction during the fastening process. HDD makers require special fasteners so as not to create dust and particles during the manufacture process(Dust crashes HDDs). (6) How does the balance sheet & valuation look like? Based on a historical EPS of 2.8cts for FY 1999(fully weighted basis), the stock is trading on a PER of 15x. There is no debt because they have raised $$ to pay off all debts. Again, pls study my approach rather than following a recommendation. Learn to fish for yourself and you will be filled for a life-time. Note, I favour stocks that are out of favour. For example, I look for reasons to buy Pertama in a depressed retail sector. Similarly, I look for reasons to buy Unisteel in a depressed HDD sector. Why do I do this? The reasons for hating derpressed sectors are obvious to all. But when these sectors revive, they do so quietly without fanfare. And when the recovery becomes obvious to all, the whole market will be chasing after good news. That is when I will take my profits. |
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