I have decided to sell out on my positions in both InnoTek and Micro-Mechanics as they appear fairly valued given the risk-reward stand off at this point of time.
|All divestments made in 2018 by Author, price includes transaction costs|
However, I continue to like both counters and will continue to monitor them closely on my watchlist.
Divestment Rationale – InnoTek
I last wrote about InnoTek after their mid year results were released in August last year (here). Then, I mentioned that InnoTek was facing a difficult time securing demand for their office automation and consumer products, and that the following growth drivers will be key to their performance going forward:
2H’17: Heat sinks for TV and Computers
1H’18: New automotive programs begin
2H’18: Mansfield Thailand to begin operations
Amongst the 3 growth drivers, the new automotive program and Mansfield Thailand are the bigger 2. …