We believe that in reviewing our investment thesis, it not only is a useful method for us to look back at our original thesis but beneficial to students of value investing as a case study to learn from.

Avi-Tech Electronics was not only a classical Grahamite stock but presented itself as a special situation as well.

Valuation

Market Capitalisation: SGD 24 million

NCAV: SGD 27.3 million

NAV: SGD 40 million

Upon discovery, Avi-Tech Electronics was trading at a slight discount to NCAV of approximately 12% and a discount to NAV of approximately 40%.

Insider Buybacks

From the period of Nov 2014 to Jan 2015, we see that the CEO himself was aggressively buying back his own shares between the share price of 6.6cents to 7.8cents, increasing his stake in the company from roughly 31.3% to 32.3% through this entire period.

Watchlist

With effect from 3 September 2014, ...