Since my previous portfolio update, I have made a few more purchases.
The first was the purchase of Broadway Industrial at 0.195. The thesis is pretty simple because I am hoping for a bumper dividend from completion of its “Foam Plastics and Flow Control” Segment. I am hoping its one off high dividend will attract investors attention and push its stock price up. Thta is where I will evaluate my position.
The Second purchase was World Precision Machinery at 0.22. Its business is in the metal stamping industry and is based in China. It is a subsidiary of Bright World Group, a chinese SOE. What attracted me was the strong constant Free cash flow generated from its operations. At an estimated free cash flow generation of RMB 80 mil annually, the company is being sold at a ratio of 6x P/FCF, to me its rather cheap and i have …Read the full article →