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As part of my quest to look for under-valued stocks with strong cash positions, I visited Food Junction last week. Its market capitalisation is S$33mn and cash of about S$19mn - no debt. Its Q3-2009 results showed modest growth in revenue of about 3% while net profit was higher by 14% to S$1.2mn for Q3-2009 alone. There was surprisingly no 9 month figure so I had a look at its Q2-2009 results with revenue higher by 10% and net profit up by 144% to S$0.9mn. So earnings were on the mend and with that kind of cash backing - I thought the stock would be interesting.
I also noticed an exodus of senior management starting with:
a) Andrew Fu - CEO/ED on 22 May 2009
b) Arianan Lim - CFO /ED on 30 July 2009
c) Ben Teo - CFO and Company Secretary on 14 October 2009
My wife saw the announcement on Ben Teo and her first question to me was - "was this the guy you met last week ? ....did you know he was resigning ?". I said no to both. I met one of the new EDs and the person replacing Ben Teo as CFO as well. The changeing of the guard is NOT unexpected as this is the end of the service contracts for the old shareholder after they sold their controlling stake to Lippo Group (Auric Pacific) at S$0.20 per share - current market price S$0.26. Read more...
[caption id="attachment_3664" align="alignright" width="150" caption="Photo by kevindooley"][/caption]
As part of my quest to look for under-valued stocks with strong cash positions, I visited Food Junction last week. Its market capitalisation is S$33mn and cash of about S$19mn - no debt. Its Q3-2009 results showed modest growth in revenue of about 3% while net profit was higher by 14% to S$1.2mn for Q3-2009 alone. There was surprisingly no 9 month figure so I had a look at its Q2-2009 results with revenue higher by 10% and net profit up by 144% to S$0.9mn. So earnings were on the mend and with that kind of cash backing - I thought the stock would be interesting.
I also noticed an exodus of senior management starting with:
a) Andrew Fu - CEO/ED on 22 May 2009
b) Arianan Lim - CFO /ED on 30 July 2009
c) Ben Teo - CFO and Company Secretary on 14 October 2009
My wife saw the announcement on Ben Teo and her first question to me was - "was this the guy you met last week ? ....did you know he was resigning ?". I said no to both. I met one of the new EDs and the person replacing Ben Teo as CFO as well. The changeing of the guard is NOT unexpected as this is the end of the service contracts for the old shareholder after they sold their controlling stake to Lippo Group (Auric Pacific) at S$0.20 per share - current market price S$0.26. Read more...
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As part of my quest to look for under-valued stocks with strong cash positions, I visited Food Junction last week. Its market capitalisation is S$33mn and cash of about S$19mn - no debt. Its Q3-2009 results showed modest growth in revenue of about 3% while net profit was higher by 14% to S$1.2mn for Q3-2009 alone. There was surprisingly no 9 month figure so I had a look at its Q2-2009 results with revenue higher by 10% and net profit up by 144% to S$0.9mn. So earnings were on the mend and with that kind of cash backing - I thought the stock would be interesting.
I also noticed an exodus of senior management starting with:
a) Andrew Fu - CEO/ED on 22 May 2009
b) Arianan Lim - CFO /ED on 30 July 2009
c) Ben Teo - CFO and Company Secretary on 14 October 2009
My wife saw the announcement on Ben Teo and her first question to me was - "was this the guy you met last week ? ....did you know he was resigning ?". I said no to both. I met one of the new EDs and the person replacing Ben Teo as CFO as well. The changeing of the guard is NOT unexpected as this is the end of the service contracts for the old shareholder after they sold their controlling stake to Lippo Group (Auric Pacific) at S$0.20 per share - current market price S$0.26. Read more...
