Portfolio as of 15 Jan 2021. Bought Valuetronics at $0.595 in late December. There has recent trend of privatisations of contract manufacturers, including Sunningdale, Hi-P and CEI Ltd, and I think that the sector deserves more attention. At the moment, I do not think Valuetronics represents an immediate takeover target, as insiders only own c.25% of the outstanding shares, as compared to Hi-P, where the insiders owned 83.% of the company when they made the privatisation offer. However, with a high net cash balance, strong track record of profitability, expansion plans in Vietnam and an improving macro situation with Biden expected to de-escalate US-China trade tensions, I believe that it may still represent an attractive company which may draw the interest of private equity firms, as the case with Sunningdale where the insiders partnered with PE fund Novo Tellus to privatise the company. I have previously written about

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