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(Post 1 of 57) 03/25/2000.06:12:00 |
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Wepco FY Net S$629,000 Vs S$126,000 Wepco Ltd. - 1999 Net Profit S$629,000 vs S$126,000 Pretax Profit 643,000 vs 126,000 Revenue 7,124,000 vs 7,076,000 Per Share Net Profit 3.86 cents vs 0.77 cents Dividend Omitted vs Omitted |
| (Post 2 of 57) 04/09/2000.05:34:00 |
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WEPCO LIMITED The Directors of Wepco Ltd ("Wepco") would like to announce that the Group has acquired the entire issued and paid-up share capital of Asia Pacific Automotive Pte Ltd ("APA"), comprising two ordinary shares of S$1.00 each for a total consideration of S$2.00. APA at the same time acquired 4,600 ordinary shares of HK$1.00 each from certain shareholders of Tong Chieh Trading (HK) Co. Ltd ("TCHK"), representing 46% of TCHK's issued and paid-up share capital, for a total consideration of HK$460.00. Background (1) APA APA was incorporated in Singapore on 31 July 1999 with an issued and paid-up share capital of S$2.00 and has remained dormant since. Wepco has acquired APA to function as a holding company for the distribution of automotive belts in the Asia Pacific region. (2) TCHK TCHK was incorporated in Hong Kong on 30 March 1993 and has remained dormant until 1997. TCHK was appointed the sole distribution agent of "Dayco" brand of automotive belts in Hong Kong and China and commenced operations in 1997. Dayco is one of the largest manufacturer of automotive and industrial belts in the world. Purchase Consideration The purchase considerations of APA and TCHK are arrived at on a willing-buyer-and-willing-seller basis after taking into account their net tangible assets. Wecpo shall finance these acquisitions by internal cash resources. Financial Effects of Acquisitions The acquisitions will not have any material impact on the net profits, earnings per share and net tangible assets of Wepco for the financial year ended 31 December 2000. Rationale of the Transaction The acquisitions of APA and TCHK are part of the Group's effort to diversify its investment and to overcome the heavy reliance on electroplating. The Group currently relies totally on electroplating operations for revenue and although the existing operation is expected to yield satisfactory returns, new businessses must be added to enhance the Group's results. The Directors believe that the acquisition are opportune and timely and meet with the Group's overall objectives. None of the Directors or substantial shareholders of Wepco has any interest, direct or indirect, in the acquisitions. The Directors are not aware of any substantial shareholder of the Company having any interest, direct or indirect, in the acquisitions and have not received notification of any interest in the purchase from any substantial shareholders. Submitted by Sam Kwai Hoong, Director on 07/04/2000 to the SES |
| (Post 3 of 57) 09/28/2000.03:36:06 |
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Wepco 1H Net S$0.6M Vs S$0.3M
Wepco Ltd. - Six Months to June 30: -2000 vs 1999 Net Profit - S$603,000 vs S$319,000 Pretax Profit - 396,000 vs 319,000 Revenue - 3,806,000 vs 3,291,000 Per Share Net Profit - 3.70 cents vs 1.96 cents Dividend - omitted vs omitted |
| (Post 4 of 57) 09/20/2001.17:45:23 |
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FINANCIAL STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2001 ("HALF YEAR RESULTS")
We refer to the Group's Full Year Results announcement made on 20th March 2001 and in reply to the queries raised by the Singapore Exchange Limited in their letter dated 14 September 2001, wherein the Directors stated in their commentary on current year prospects that, "Barring unforeseen circumstances, the Directors are confident of continued profitability in the financial year 2001". Despite the conditions in the electronics industry, the Group's performance up till 20th March 2001 was within expectation and did not fluctuate significantly, compared to the same period last year. The stable 1st quarter 2001 results coupled with customers' assurance of confirmed orders gave the Directors confidence that the Group would remain profitable in 2001. The slowdown in the electronics industry however, was worse than expected, especially in the second quarter of 2001 which saw the Group's major customers cutting back on their orders and making requests for price reductions. Customers' orders became smaller and irregular, thus creating significant fluctuations in the Group's daily production. Despite these difficulties, the electroplating division managed to make a small operating profit for the half year ended 30th June 2001, which was subsequently eroded following a decision to write off certain assets as a result of drastic cost cutting measures in the second quarter of 2001. The writing-off of assets resulted in a loss on disposal of assets amounting to S$112,000.00, due to a scaling down of the Group's resources employed to service one customer in Batam. This customer's normal monthly orders exceeded S$120,000.00 in 2000 and was expected to increase in 2001. Due to difficulties faced by the customer in early 2001 as world demand for its component declined, its current monthly orders are only S$10,000.00. This customer had earlier expected orders to return to normal in the second half of 2001 but the orders did not materialize in July and August 2001 as expected and it was unable to provide its forecast with certainty. Under the circumstances and in view of the global economic slowdown, the Group believed that orders from this customer would not be likely to increase or return to normal level in the short term. The Group realised with some certainty in late August that there was a need to write-off the said assets after its customer as mentioned above failed to recover. The Directors therefore decided to take the prudent step of writing-off the assets in the Group's Half Year Results after the external auditors had performed its usual half-year limited review rather than delaying it till the end of the year. The write-off would make space available in anticipation of added facilities needed for other new and existing customers. Had the said assets which resulted in a loss on disposal of assets of S$112,000.00 not been written-off, the Group would have reported an operating profit of S$12,000.00, instead of an operating loss of S$100,000.00. Submitted by Ng Kah Tie, Director on 20/9/2001 |
| (Post 5 of 57) 01/07/2002.08:46:34 |
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WEPCO LIMITED
DISPOSAL OF INVESTMENT - ASIA PACIFIC AUTOMOTIVE PTE LTD The Directors of WEPCO Ltd ("WEPCO") announce that the Group has agreed to dispose its entire holding of 2 ordinary shares representing 100% in Asia Pacific Automotive Pte Ltd ("APA") to Mr James Ong Cheng Aik and Ms Tan Meow Kheng on 31 December 2001. The Group will take over APA's investment in Tong Chieh Trading (HK) Co, Ltd ("TCHK"). The details are as follows: - Information on APA APA was incorporated in Singapore on 31 July 1999 with an issued and paid up capital of $2.00 and was dormant then. WEPCO has acquired this company to function as a holding company for the distribution of automotive belts in the Asia Pacific region. APA owns 46% of TCHK, a company incorporated in Hong Kong with a sole right to distribute the Dayco brand of automotive belts in Hong Kong and China. APA is also distributing Dayco's automotive belts in Singapore and Indonesia. Consideration The Group will buy over APA's interest in TCHK for S$101.00 representing the cost paid by APA for TCHK. All balances (receivable/payable) between TCHK and APA shall be assigned to WEPCO. The selling price of APA is S$2,000.00. This amount represents the net tangible assets ("NTA") of APA as at 31 December 2001. The net profit attributable to the asset disposed is S$1,998.00. The sales proceeds will be utilised as working capital of WEPCO. Financial Effects of Disposal The transaction will not have any material impact on both the earnings per share and NTA of WEPCO. Rationale of the Transaction The Group acquired APA on 1 April 2000 with the intention to develop its automotive belts distribution operation in the region. This investment is part of the Group's effort to diversify our investment to overcome our heavy reliance on electroplating. However, APA has not been successful in obtaining the sole distribution rights for Thailand and Malaysia and the markets in Singapore and Indonesia are insignificant. The Group therefore has decided that it is more efficient to distribute the automotive belts in Singapore and Indonesia through its holding company, WEPCO Ltd and to dispose its interest in APA. Directors'/Substantial Shareholders' Interests in the transaction None of the Directors or substantial shareholders of WEPCO has any interest, direct or indirect, in the Disposal. Submitted by Ng Kah Tie, Director on 04/01/2002 to the SGX |
| (Post 6 of 57) 05/15/2002.22:06:36 |
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WEPCO LIMITED
NOTICE OF TWENTY-NINTH ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the Twenty-Ninth Annual General Meeting of Wepco Limited ("the Company") will be held at the registered office, 5 Kwong Min Road Singapore 628708 on Thursday, 30 May 2002 at 9.00 a.m. for the following purposes: AS ORDINARY BUSINESS 1. To receive and adopt the Directors' Report and Audited Accounts of the Company for the year ended 31 December 2001 together with the Auditors' Report thereon. (Resolution 1) 2. To re-elect the following Directors retiring pursuant to Article 89 of the Company's Articles of Association:- Dr Koh Lam Son (Resolution 2) Mr Wee Koon San (Resolution 3) Dr Koh and Mr Wee will, upon re-election as Directors of the Company, remain as members of the Audit Committee, with Dr Koh as Chairman of the Audit Committee Dr Koh and Mr Wee will be considered independent for the purposes of Clause 902(4)(a) of Listing Manual of the Singapore Exchange Securities Trading Limited. 3. To approve the payment of Directors' fees of S$12,000 for the year ended 31 December 2001 (2000: S$12,000.00). (Resolution 4) 4. To re-appoint Messrs Ernst & Young as the Company's Auditors and to authorise the Directors to fix their remuneration. (Resolution 5) 5. To transact any other ordinary business which may properly be transacted at an Annual General Meeting. AS SPECIAL BUSINESS To consider and if thought fit, to pass the following resolutions as Ordinary Resolutions, with or without any modifications: 6. Authority to allot and issue shares up to 10 per centum (10%) of issued capital That pursuant to Section 161 of the Companies Act, Cap. 50, the Directors be empowered to allot and issue shares in the capital of the Company at any time and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit provided that the aggregate number of shares to be allotted and issued pursuant to this Resolution shall not exceed Ten per centum (10%) of the issued share capital of the Company for the time being and that such authority shall, unless revoked or varied by the Company in general meeting, continue in force until the conclusion of the Company's next Annual General Meeting. [See Explanatory Note (i)] (Resolution 6) 7. Authority to allot and issue shares under the Wepco Executives' Share Option Scheme ("the Scheme") That pursuant to Section 161 of the Companies Act, Cap. 50, the Directors be empowered to allot and issue shares in the capital of the Company to the holders of options granted by the Company under the Wepco Executives' Share Option Scheme ("the Scheme") established by the Company upon the exercise of such options and in accordance with the terms and conditions of the Scheme provided always that the aggregate number of additional ordinary shares to be allotted and issued pursuant to the Scheme shall not exceed fifteen per centum (15%) of the issued share capital of the Company for the time being. [See Explanatory Note (ii)] (Resolution 7) By Order of the Board Yvonne Choo Busarakham Kohsikaporn Secretaries Singapore, 15 May 2002 Explanatory Notes: (i) The Ordinary Resolution 6 proposed in item 6 above, if passed, will empower the Directors from the date of the above Meeting until the date of the next Annual General Meeting, to allot and issue shares in the Company. The number of shares which the Directors may allot and issue under this Resolution would not exceed ten per centum (10%) of the issued share capital of the Company for the time being. (ii) The Ordinary Resolution 7 proposed in item 7 above, if passed, will empower the Directors of the Company, from the date of the above Meeting until the next Annual General Meeting, to allot and issue shares in the Company of up to a number not exceeding in total fifteen per centum (15%) of the issued share capital of the Company for the time being pursuant to the exercise of the options under the Scheme. Notes: 1. A Member entitled to attend and vote at the Annual General Meeting (the "Meeting") is entitled to appoint a proxy to attend and vote instead of him/her/it. A proxy need not be a Member of the Company. 2. If the appointor is a corporation, the instrument appointing a proxy must be executed under seal or the hand of its duly authorised officer or attorney. 3. The instrument appointing a proxy must be deposited at the Registered Office of the Company at 5 Kwong Min Road Singapore 628708 not less than forty-eight (48) hours before the time for holding the Meeting. Submitted by Busarakham Kohsikaporn, Company Secretary on 15/05/2002 to the SGX |
| (Post 7 of 57) 05/30/2002.15:09:49 |
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WEPCO LIMITED
ANNUAL GENERAL MEETING The Directors of Wepco Limited ("the Company") are pleased to announce that at the Annual General Meeting of the Company held on 30 May 2002, all resolutions relating to matters set out in the Notice of the meeting were duly passed. By Order of the Board WEPCO LIMITED Submitted by Ng Kah Tie, Director on 30/05/2002 to the SGX |
| (Post 8 of 57) 05/30/2002.15:10:59 |
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WEPCO LIMITED
ANNUAL GENERAL MEETING The Directors of Wepco Limited ("the Company") are pleased to announce that at the Annual General Meeting of the Company held on 30 May 2002, all resolutions relating to matters set out in the Notice of the meeting were duly passed. By Order of the Board WEPCO LIMITED Submitted by Ng Kah Tie, Director on 30/05/2002 to the SGX |
| (Post 9 of 57) 09/24/2002.08:52:41 |
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WEPCO LIMITED
Half Year Financial Statement And Dividend Announcement Pls view financial here. |
| (Post 10 of 57) 07/07/2003.17:34:17 |
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Have been collecting this to keep under my pillow. This is one of the smallest market cap stocks in SGX. At 24.5cts, its market cap is about $4 mil as there are only about 16 mil shares in issue.
If I read the annual report correctly, the cash in hand is $2.26 mil and one of the largest shareholders is a Wah-Chang International which I believe is also the company behind Banyan Tree. Not sure of the connection though. Anyone can help ? |
| (Post 11 of 57) 07/07/2003.17:38:50 |
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Oldman,
99 lots done, must be you buying it up right.  |
| (Post 12 of 57) 07/07/2003.17:39:54 |
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Oldman, this company is formerly known as Wah-Chang Electro Plating. No connection with the Banyan Tree which is owned by Claire Chang and her husband Ho Kwon Ping. Also, no connection to Welco (or Walco?) which makes bras. |
| (Post 13 of 57) 07/07/2003.17:43:48 |
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Sgriver, me small fry lah. Collect also must collect slowly otherwise run out of ammo easily. |
| (Post 14 of 57) 07/07/2003.17:47:20 |
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Thanks Mephisto. |
| (Post 15 of 57) 07/07/2003.22:03:34 |
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Hi Oldman,
How's it going? This incredible bull market wot! Just wondering if you'd like to share what else you find still of value in this market, besides Wepco. Been cracking my head trying to find still undervalued gems. Cheers!  |
| (Post 16 of 57) 07/08/2003.06:31:52 |
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Suntzu, glad that more are seeing the bull coming. Gems are getting more and more difficult to find. What I do is to look at the Matrix which will list down smallest market cap stocks, smallest PE, highest NTA, stocks hitting all time lows, etc. You will find this in the SI Station under the header Find. If you believe like I do that the market is usually inefficient especially for the smaller cap stocks, there will be gems lying around.
As the market edges higher, value investing becomes more important and that is why I am shifting from speculative penny counters to companies that have a potential to be rerated. I am also optimistic on Medtecs, Vicplas & Eng Wah. I have made comments in their respective stock threads. As for Wepco, I am still collecting as my timing is usually not great. Moreover, the insider trades suggest that there may be a seller with a lot of stocks left. Take care and thanks for supporting SI. |
| (Post 17 of 57) 07/09/2003.00:28:42 |
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Oldman,
Sorry for the late reply. Trading futures lah! Thank you very much for the stock suggestions. I will do some due diligence myself. Yes indeed, I've been wondering what strategy to employ in this sort of market. It seems like any fool can make $$ now. I am tempted to just buy cheap penny stocks. After all, the % return from such penny stocks are quick, if I can unload to the greater fool! I am also sifting through all the warrants to see if there are any whose mother share actually makes free cash flow. So far, only Want Want and Pacific Andes warrants are worth mentioning. Cheers and happy trading! |
| (Post 18 of 57) 07/09/2003.00:31:56 |
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Oldman,
BTW, do you know of any thread that discusses macro trading ideas, i.e Currency trading, futures trading, alternative investments? I am interested in finding like-minded forumers who do other sort of investments besides stocks. Thanks. |
| (Post 19 of 57) 07/09/2003.06:08:31 |
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Suntzu, the futures thread is not well visited but who knows, given the bullishness these days, you may find others joining you there. The thread is here.
It is certainly a good time to look out of fundamentally strong penny stocks. OK, I better not discuss anything that is not Wepco related here or else admin may give me a call.  |
| (Post 20 of 57) 09/13/2003.13:41:08 |
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Anyone know why there was some interest in this relatively quiet stock on the 10th? Thanks in advance. |
| (Post 21 of 57) 03/10/2004.08:48:32 |
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Interesting to see who bought the 25.1% stake from Wah-Chang as announced in Masnet yesterday. Still one of the smallest company in SGX by market capitalisation and a sound company as well, I think.
--------------------- Largest Shareholders Name No. of Shares % 1. Clean Systems (S) Pte Ltd 4,443,791 27.27 2. Wah-Chang International Corporation Pte Ltd 4,090,000 25.10 3. Overseas Union Bank Nominees Pte Ltd 2,406,460 14.77 |
| (Post 22 of 57) 02/20/2005.18:54:21 |
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This is one of the few companies that I collect under my pillow (for a lot longer than 6 months ).
Firstly, this counter is very very thinly traded. At 29.5cts, its market cap is $4.8 mil. The FY04 results out on Fri showed cash of $4.5 mil with no debt. What I also like is the cashflow from operating activities of $1.2 mil for the past 2 years although the P&L for 04 shows a profit of about $400K. This is because the company has been depreciating its fixed assets which really consists of primarily land, building, plant & machinery. Nett book value of these is about $4 mil in FY03. Depreciation is about $500K in FY03 and FY04. The valuation done on its land and building in 1999 is $3 mil. Looks like they have a very conservative accounting system. Its business is that of electroplating of plastics. NTA is 50.95cts and EPS is 2.46cts. Nice small cash rich company. On the negative side, it did state in its FY04 report that 'it expects to be remain profitable in 05 but its performance will be lower than 04'.
As always, please do your own homework. |
| (Post 23 of 57) 02/20/2005.19:33:00 |
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Oldman 
You are the lone voice here. As such, I decided to take a look at their latest results and try to understand the investment merits of this stock. After a brief review, I noted the following: 1 Small, about S$7m in sales. 2 Small cap risk, vulnerable to structural change in the industry it operates in. How many customers has it? If I'm not wrong, plating industry is highly pollutive. If its customers go elsewhere (blame it on globalisation), how will it affect its business? A net margin of 5.7% can easily change into a loss. (Noted accumulated losses of $6.23m, and a large part of its NTA is in share premium & capital reserve accounts - whatever the origins of these surpluses, the company had accumulated operating losses.) (Its commentary on future prospects says "One of our major customers has relocated its assembly of a component overseas. Although the customer will continue to engage Wepco to plate the component locally after the relocation,it is expected to affect the demand of our plating services in 2005. Its impact is uncertain at the moment and it can be better ascertained by the end of 2nd quarter of 2005. Besides, competition in the electroplating business is expected to be more intense in 2005 with more customers demanding price reductions. Our plating margins in 2005 is expected to be lower compared to 2004. In view of the challenges expected in 205, the directors expect the Group to remain profitable but its performance will be lower compared to 2004.") 3 No arguments about its cash rich balance sheet as you pointed out. But I also noted that they did not declare dividends. What's the point of owning shares in a company who is in a position to pay dividends but seems disinclined to do so? 4 The rationale for its continued listing status is questionable. 11% revenue growth ($6.4m to $7.1m) is hardly exciting, they don't seem to talk of growth and expansion in a big way, they have no need for fund raising through the public market. 5 So, how to unlock value in this small cap company? Its parent should take it private if it has synergies with the Group business. Care to write a bit more in response to my comments, Oldman? |
| (Post 24 of 57) 02/20/2005.20:25:38 |
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McCool, thanks for keeping me company here. You are absolutely right. It is not actual the business that I am interested in. As you pointed out in point 4, I too wonder about that. There is a part of me that likes to invest in small cash rich companies. Nothing more. Prepared to sleep here for a while.... anyway, one cannot buy much given that it is not liquid at all. Have a good Sunday.
PS - Any gems left that you are looking at? |
| (Post 25 of 57) 02/20/2005.20:47:25 |
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Since this is a rather quiet room, might as well leave some foot print here to keep Oldman and MC company.
My take; The 9-year downtrend is about to be broken and its first target is around $0.5 - $0.7. . .   |
| (Post 26 of 57) 04/25/2005.09:57:27 |
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McCool, I am not good at reading the section on Changes in Equity. Wonder if I can learn from you. What do you mean by the sentence below? Does it mean that the assets of a company are usually written to its share premium & capital reserve account and that any losses will be used to offset these accounts? Tks.
------------- (Noted accumulated losses of $6.23m, and a large part of its NTA is in share premium & capital reserve accounts - whatever the origins of these surpluses, the company had accumulated operating losses.) |
| (Post 27 of 57) 04/25/2005.11:01:34 |
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Hi Oldman
I'll get back to you in due time with whatever I'm able to share (to the best of knowledge and ability, my lack of accounting experience / qualitification notwithstanding). |
| (Post 28 of 57) 04/25/2005.11:10:54 |
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McCool, thanks. Also, are you looking at any other fundamental stock that I can comment on? I believe that there are jewels lying around esp the smaller stocks. |
| (Post 29 of 57) 04/25/2005.11:12:38 |
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My soldiers here are all oldmen liao since I engaged them in its IPO days. 
My only hope is they were be given gold-plated coffin when they are called upon. |
| (Post 30 of 57) 04/25/2005.11:39:09 |
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Oldman
Pls see the attached jpg file below. 1 Share Premium arise from the issue of shares at a premium to its par value. (Par value is 50 cts each. There are 16,292,791 issued shares as at 31.12.04. There is a share premium of $4,317,000. Some, quite unlikely to be all, of the 16.3m shares were issued at a premium above 50 cts to create this share premium account.) 2 Capital Reserve account arose from revaluation of leasehold land and building. Therefore, such $ comes about from market value adjustments. I don't say that these stuff are not real, but they are not from operations. 3 "the company had accumulated operating losses" - this is not meant to be an indictment of the company's present & future. Merely an expression that the company had undergone bad times in the past resulting in cumulative operating losses. Origins are from the usual sources, like revenue < costs, write-off/write down of receivables, etc. These 3 items on the Equity side of the balance sheet are distinct and separate and no issue of "offsetting" one against the other. If you see the notes, Share Premium and Capital Reserves cannot be distributed as dividends, while Revenue Reserve (Retained Earnings) can be distributed. The fact that Wepco has Accumulated Losses explains why the company is not in a position to distribute dividends in spite of it being in a net cash position. Shareholders will only be able to access the cash in the company through a balance sheet restructuring, e.g. by way of capital reduction. * Capital reduction can clean up the accumulated losses without a corresponding cash distribution. E.g. If par value of share is reduced to approx 10 cts, that will be enough to wipe out the accumulated losses ([Share capital - Accum losses]/(no. of shares) = 11.8 cts) and in future, the company may pay dividends out of retained earnings. * The other form of capital reduction is to reduce capital from Share Premium account and shareholders will be able to receive cash as a result. (No tax is payable because the capital reduction out of share premium is viewed as a genuine capital reduction and not as another way of distributing a dividend.) |
 |
| (Post 31 of 57) 04/25/2005.11:47:25 |
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Mccool,
If you see a company's inventory jumped say 1x from last FY, what conclusion can you make? Could something be cooking in the pot? Thanks. |
| (Post 32 of 57) 04/25/2005.11:56:41 |
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Tks McCool. I am familiar with Share Premium given what I went through in SI. For your info, IPO costs can also be taken off the Share premium account.
As for the accumulated losses, I think that companies can still distribute dividends even though they have accumulated losses. |
| (Post 33 of 57) 04/25/2005.11:57:03 |
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Sgriver
On its own, hard to tell. Talking generally, enquire along the following lines: 1 Is Revenue up or down? Is the relationship between sales and inventory consistent with past patterns? (Compare stock turn.) 2 Is inventory moving or not? What can you tell from the age profile (data not generally in public domain)? 3 Has there been an internal accounting policy change - e.g. concerning writing down inventory? 4 What about the composition - between finished goods, raw materials and WIP? |
| (Post 34 of 57) 04/25/2005.12:00:39 |
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Oldman: "As for the accumulated losses, I think that companies can still distribute dividends even though they have accumulated losses."
Above is not correct. I have some experience in this area and I'm sure there are others (e.g. your accountant / CFO) who can confirm. As for unpolished diamonds, I am more interested to hear from you. I where got unpolished diamonds? |
| (Post 35 of 57) 04/25/2005.12:01:19 |
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Oldman, to distribute dividends, the company must also have sufficient tax credit to frank the dividend. |
| (Post 36 of 57) 04/25/2005.12:03:18 |
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Sgriver, when I see inventory increasing yoy, I get very suspicious. From a company standpoint, they may say that they expect business to be very good and hence stock up, esp for new models yet to be introduced. The other way of looking at inventory is that they are increasing because the company cannot sell the product.
If the following year, one continues to see increasing inventories without increasing revenues, I will think it is more the latter than the former. |
| (Post 37 of 57) 04/25/2005.12:09:28 |
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Tks McCool and Mephisto. |
| (Post 38 of 57) 04/25/2005.12:37:15 |
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Hi Oldman
I have 2 small caps which are stretching my patience. PSC and Pac Andes. Care to comment? |
| (Post 39 of 57) 04/25/2005.12:40:55 |
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Mccool,
1 Is Revenue up or down? Is the relationship between sales and inventory consistent with past patterns? (Compare stock turn.) Revenue 30188k (04) vs 25744k (03) vs 22512k (02) - looks steadily up sales/inventory pattern not available 2 Is inventory moving or not? What can you tell from the age profile (data not generally in public domain)? no data 3 Has there been an internal accounting policy change - e.g. concerning writing down inventory? not mentioned. Inventory write down 39k (04) vs inventory 6188k (03) - looks ok 4 What about the composition - between finished goods, raw materials and WIP? Inventory at cost: finished goods 187k (04) vs - (03) work in progress 547k (04) vs 650k (03) Inventory at net realisable value: raw material 7227k (04) vs 2892k (03) - increased 150% over 03 finished goods 3492k (04) vs 2646k (03) --------------------------------------- inventory 11453k (04) vs 6188k (03) - increased 85% over 03 Thanks for your further comments. |
| (Post 40 of 57) 04/25/2005.12:47:38 |
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Oldman,
Yes, that is what I am, suspicious. But after a second thought, could there be something up and coming?
Hopefully Mccool can give me some bullets to probe more.
Others, please feel free to comment. Thanks. |
| (Post 41 of 57) 04/25/2005.12:53:00 |
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Sgriver - If listed co., pls provide name of co. Then can look at the overall picture instead of feeling parts of the elephant (e.g. its trunk) to picture how the elephant looks like.
By the way, general principle is lower inventory is better than higher inventory (use of capital is more efficient) for the same level of sales. Provided biz continuity (operations & production) not affected if supply chain suddenly got cut. |
| (Post 42 of 57) 04/25/2005.13:12:18 |
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Mccool,
Can you provide your email so that I could send over. As there is event coming up, I don't want to disturb the snake.
Actually I have given quite a lot of data. I am sure Oldman is ordering his (wo)men to search through his database now. But too bad, the service is not extended to us. |
| (Post 43 of 57) 04/25/2005.13:14:06 |
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Wow, mr Cool losing his cool on these 2. Will certainly look into these over the next few days and will post in the appropriate stock forums. Always keen to look for more jewels. |
| (Post 44 of 57) 04/25/2005.14:02:10 |
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Mccool, on inventory, not so much a question of lower or higher inventory but inventory turnover (defined as total sales divided by average inventory level) that matters. If inventory level has increased and inventory turnover has dropped, then this is bad as it could signify that company cannot sell its goods. |
| (Post 45 of 57) 04/25/2005.14:06:43 |
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Sgriver
If you agree, I will request Admin to exchange our email addresses by sending each of us an email. Pls note I'm only an amateur in financial analysis hor. |
| (Post 46 of 57) 04/25/2005.14:08:35 |
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Mephisto
What I said still stand: "By the way, general principle is lower inventory is better than higher inventory (use of capital is more efficient) for the same level of sales. Provided biz continuity (operations & production) not affected if supply chain suddenly got cut." |
| (Post 47 of 57) 04/25/2005.16:54:45 |
| Author : |
Mccool,
Sorry, I was out and just returned. Yes, I have no problem with your suggestion. Please send your request to Admin and reference this posting. No worry, I would not hold you responsible. I just want to have a second opinion. |
| (Post 48 of 57) 04/25/2005.16:57:53 |
| Author : |
Sgriver, why not just send me an email and I will then only need to search for McCool's email address. I am on email notification on this thread but admin is not. Take care. oldman@shareinvestor.com |
| (Post 49 of 57) 04/25/2005.17:06:19 |
| Author : |
Oldman,
Thanks. I will send a mail to you and please forward to Mccool. You may, of course, take a look of the counter and give us your opinion too. |
| (Post 50 of 57) 04/25/2005.17:13:29 |
| Author : |
Sgriver, I will leave the comms between you and McCool. Just trying to help. Just send me an empty email. Take care. |
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