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Multi-chem continues to bleed for another quarter
By Investment Moats  •  August 7, 2013

I talked about ECS and Multi-chem, IT distributors cum system integrators or after sales providers that could have issues due to them not being stockist.

I realize I was late in that they reported their interim financial report.

You can view report here.

This small stock is really seriously thinly traded. The spread is damn wide.

  • Revenue and gross profit growth was stagnating, but COGS outpaced revenue
  • Selling and distribution costs was inline
  • The main bugbear was the Administrative expenses. 44% increase. The main reason I feel causing this 2 quarters of profitability issues
  • Operating Cash Flow Before working capital is strong. Half year cash flow is able to fulfill the full year dividend of 8%.  Factoring in working capital and income tax and the free cash flow becomes negative
  • Beauty of this business is no need for much capex. This  balance off with the investments in administrative expenses
  • ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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