ZGL: Undervalued machinery company

[tommy]

Okay guys, I've been looking for under-the-radar stocks again and found a company called Zicom Group (ZGL). Here's the rundown.

Website:
http://www.zicomgroup.com/

"Zicom Group Limited, formerly Zicom Australia Ltd, is a manufacturer of precision engineered equipment. The company's principal activities are sale and servicing of equipment in the concrete industry. On July 24, 2006, the Company completed the purchase of Zicom Holdings Pte Ltd, (ZHPL). ZHPL's main activities are the manufacture of offshore and marine deck machinery, foundation equipment, precision engineered equipment, gas regulating and metering stations, and hydraulic drives for harvester machines. ZHPL also manufactures transit concrete mixers in Singapore, Malaysia, Thailand, and China using the blades that are made by the Zicom Group. In February 2007, the Company’s 51%-owned subsidiary, Sysmac Automation Engineering Pte Ltd, acquired a 51% interest in MTA-Sysmac Automation Pte Ltd."

[Performance in year ended June 30 2007]
The Group has a very satisfactory year, improving its earnings per share from Australian 1.41 cents in the corresponding previous year to Australian 3.53 cents. Net profits after tax improved from A$2.28m in the corresponding previous year to A$6.35m. Included in this year’s net profits after tax is a non-recurrent revenue of A$0.69m (S$0.84m) which had been recognized in the first half year’s net profits of A$3.15. The net operating profits after tax net of the non-recurrent item therefore improved from A$2.46m in the first half to A$3.20m in the second half year.

* Market cap is 68 million, PE is 10. Plenty of cash in the bank (AU$6.2 million).
* Just paid 20c dividend.
* Has presence in Australia, Signapore, China, Indonesia, Malaysia and Thailand.
* Should be noted however that it is a very illiquid stock.

Chart:
http://asx.netquote.com.au/charts.asp?code=zgl&x=0&y=0

Final report:
http://sa.iguana2.com/cache/463f2ad343bcc22dbee35c2bc27d180a/ASX-ZGL-192165.pdf

Looks fairly cheap with plenty of growth potential. Anyone holding? I haven't purchased yet (still in the process of research).

Opinions will be appreciated as always :-)

[Huang Chung]

Picked up a few a couple of months back but never really got set with the numbers I was after. One thing led to another and I sold out soon after.

ZGL is essentially a Singaporean / Asian operation, and do wonder if it might enentually go private, or drop its ASX listing?

[tommy]

Not a bad result, just as expected :-)

Revenue increased by 34%.
EBITDA increased by 34%.
NPAT increased by 37%
Adjusted NPAT increased by 76%

The group’s profit margin has generally improved due to better cost controls.
The Group’s cash position remains strong. As at 31 December 2007, our total cash and bank balances amounted to S$15.82m compared with S$8.37m as at 30 June 2007.

http://sa.iguana2.com/cache/09513c16e2b774b1b06b912630fa00b9/ASX-ZGL-197070.pdf

[Huang Chung]

Now trading at a low 25c.

Haven't looked at ZGL closely of late so not sure if it has just been caught up in the market's funk or something else.

Are you still looking at this one Tommy?

[thereslifeafter87]

The MD has been buying as many shares as he can all the way down. They have significant orders on their books, and should grow profits and revenues strongly this year and next.

[Mick100]

bought some of these last yr

Have added to position over last 2 weeks

CEO holds about 30% of shares now

As mentioned , good result from last yr and full order book going forward

another plus in todays environment - very low debt

they are in the right business - revenue is increasingly coming from oil services - metering equipment for offshore production facilities
Can only see demand increasing for this sought of equipment.
.

[Damo79]

Thanks guys for drawing my attention to ZGL (I will withdraw my thanks if the share price goes lower :p).

Have been having a look at them and agree that they're now undervalued given the hefty forward order book.

Just got the last 18000 at 25 cents. Buy side is pretty strong, and next sell price is currently 28.5, so let's hope 25 was the bottom.

Happy holding

Damo

[Damo79]

If anyone else has been watching closely for the past couple of weeks, it seems that there was a pretty dedicated seller offloading at 25 cents. And most of these look like they were bought by the directors. For the first time this morning, however, there don't seem to be any more 25c shares coming onto the sell side. So hopefully whoever it was that wanted out is gone and the share price will recover :-)

And the depth chart is looking promising for an illiquid company. 21 buyers for a total of 600k shares compared with 6 sellers for a total of 130k shares.

Cheers
Damo

[Huang Chung]

I haven't looked at ZGL closely for a while Damo, but their prospects looked pretty good at the time I was trying to get set a couple of months back. I think you'll do well out of them.

[Dr_Who]

Who is Ventrade Ltd? They are the big sellers with 16.93% holdings left to sell?

[Damo79]

Who is Ventrade Ltd? They are the big sellers with 16.93% holdings left to sell?

Can I ask how you know Ventrade is the seller? The last notice for their change in substantial holdings that I can find was that they took part in the placement last november...

Cheers
Damo

[Dr_Who]

It is in the march 25th change in substantial holding notice. They went from 19.99% to 16.93% holding. I assume they are the ones supplying stock to the buyers.

[Damo79]

It is in the march 25th change in substantial holding notice. They went from 19.99% to 16.93% holding. I assume they are the ones supplying stock to the buyers.

Ah, I see. Actually, although their holding % went down, the notice actually shows that they bought a big pile of shares in a placement. It was the size of the placement that made their final % decrease.

Doesn't mean they're not the ones selling, but they were happy to pay 38 cents a share last november, so it's probably not.

Cheers
Damo

[Dr_Who]

I am going to keep an eye on this one.

[Damo79]

I'm increasingly optimistic about Zicom. The best fundamentals (relative to market cap), I've found in any company of late, and thus my current 'favourite pick' :-)

Announcement released saying orders recieved this financial year amount to almost S$200m (singapore dollars). Let's call that AUD$155m. That's the orders taken over 9 months, so they could end up with AUD$200m for the year. Much of the current orders are for the 09/10 FY, but regardless of which period the revenue will be booked in, if they're getting $200m orders a year going forward, then they'll be getting $200m revenue pa at some point. Their net profit margin has been about 8% and increasing, so one would assume they'll be looking at a NPAT of about $16m (perhaps not this FY, but probably next FY).

That's gives a forward looking P/E of about 4!

That's just from my rough calculations, not from any projections released by the company mind.

Also of note, they have plent of money in the bank ($10m? I'd have to check). The fact that they already have $86m worth of orders for 09/10 paints a rosey picture of business looking good into the near future. And directors have been buying up big at current prices.

Hold and looking to increase.

Cheers
Damo

[Damo79]

Hey all. Not sure what, if anything, has happened here. Share price has taken a little tumble in recent weeks and days, but the company seems to be on track??? Any ideas? Just the general down turn in the stockmarket?

My biggest holding, so not happy :(

[mamos]

Great profit upgrade today. On an annualised PE of 5.

Will provide analysis soon.

[mamos]

Price has been appreciating significantly recently. SSH is selling down and there have been record volumes traded.

Biggest contributor is deck machinery for marine and oil and gas machinery so very cyclical. This division is crucial as it is the largest in revenue and has strongest margins.

Upsides

Management owns ~35%. Shareholder interest aligned with management. Very conservatively run. They have been steadily increasing NTA however SP has been all over the show.


Recently implemented a share buy-back that seems to have stopped now that price has increased. Management was prepared to buyback up to around NTA I believe.

Benefits from low tax rates of ~16% in Singapore.

On about PE multiples around 6.5 if double ½ result based on recent guidance and SGD has been weak against AUD gone from 1.2ish at beginning of period to 1.30 now. PE could reduce further if AUD currency depreciates.

What to look out for in HY11 report is the order book outlook as this will lock in growth to some extent.

Have recently been making venture capital type acquisitions in bio-tech medical device companies that are near or at commercialisation stage. There are synergies in that their precision engineering business is able to manufacture these products. If these products are successfully commercialised could provide significant growth but won’t be happening until FY12 at the earliest. They are not betting the farm on them so more a free call option on potential growth.

Downsides

Low liquidity until recently with SSH selling out.

Run like a private company with minimal investor relations.

Low profile and unlikely to pick up decent research coverage.

3266
3265

[Sauce]

Mamos,

Great overview, great investment opportunity. Thank you.

My only comment on your analysis: The three downsides you list are arguably upsides!!

:)

I will add some thoughts soon also.

Many regards,

Sauce

[mamos]

On Roger Montgomery show on TV last night.

http://blog.rogermontgomery.com/who-makes-your-a1a2-small-cap-list/


Mamos,

Great overview, great investment opportunity. Thank you.

My only comment on your analysis: The three downsides you list are arguably upsides!!

:)

I will add some thoughts soon also.

Many regards,

Sauce

[Sauce]

Bloody typical.. Montgomery punts a stock and it goes ballistic.... I am glad I mostly fulfilled my desired allocation in ZGL before that happened or I would have been pissed off.

!

[h2so4]

A value investor with a TV show? You gotta be kidding me right?

[Sauce]

Haha

Hi h2,

Montgomery is a fund manager/value investor/blogger who has regular appearances on Australian investment shows. His 'fan' base is clearly large enough to influence share prices. As evidenced by ZGLs spike after he mentioned it on his blog.

Reading his blog without nearly vomiting is almost impossible due to all the happy clappy 'montgomery fan club' posts

In saying that his book is well worth reading. I think his approach to valuation is the most rational.

Regards,

Sauce

P.s. h2 you should take a look at ZGL if you haven't already - I think this is a company that you might find interesting considering some of your picks, and better yet its still cheap. I'll post some bits and bobs on it later on.

[mamos]

Substantial holder Ventrade is now below 5%. They have 9.6m shares as at the start of today left to sell.

They have been very fortunate with the increased liquidity recently to sell into.

Coverage initiated by Austock on 29/3 with a target Price 75c . First coverage of the stock I know of since Bell Potter ceased coverage in 2008.

[percy]

Gee Whiz.
Did you guys play with sky rockets when you were kids?
You sure pick the winners.!!!

[h2so4]

I'd say .75 is closer to the mark but I'm still well above that.:lol:

Monty plays his stocks like he is playing poker, I'm betting he will re visit his valuation soon, perhaps A1+++.:)

[drillfix]

Dont really know who Montgomery is but it does appear that the Hourly Chart is about to fall over, so take a little caution for those of you who believe its gonna keep heading upwards.

Lots of strong conviction though with daily RSI, OBV, DMI, MACD all revving up there and may need to take a breather after such a couple of recent moves, hence my note on the 60 minute chart showing the MACD histogram diverging potentially negative with a signal line way up there and about to potentially cross.

May even do a bit of a trade once the next cycle of the 60 minutes completes, which seems to be every 2 days or so.

[h2so4]

Well I wouldn't know what a 60 minute chart was or looked like but if you look over the financials for the the last 26,280 hours you will see a business that has increasing equity, turnover, profits, true profits, and profit margins. This all bodes well for ZGL and it's future. Theory being share price follows value.:)

But thanks for the post Drilly

[drillfix]

Well I wouldn't know what a 60 minute chart was or looked like but if you look over the financials for the the last 26,280 hours you will see a business that has increasing equity, turnover, profits, true profits, and profit margins. This all bodes well for ZGL and it's future. Theory being share price follows value.:)

But thanks for the post Drilly

Good reply H2 and I agree what you say and by no means would only use TA in any decision alone to enter or exit, but if I were going to jump in for a trade or make an investment long term, I think I would use it to give me the best entry I could make (up to a degree).

Here is what an hourly chart looks like (from this application at present anyway).

ZGL 60 minute chart >>> http://www.imageurlhost.com/images/qawklr28080g4jord0cs.png


MACD signal line is just crossed way up there on the positive side of the zero line, and the Histogram is now right on the zero line.

To me this could mean a retrace back to 44-45 cents for a slight breather.

Depending on the daily as well, the same signal line on the histogram is very strong and the run sure has had plenty of conviction so there is plenty to be said for that.

Anyway, all the best with that H2 and others.

[h2so4]

I hope it becomes a buying opportunity for you Drilly.

I find it interesting when FA and TA meet.:)

[drillfix]

Well H2, if a stock can become predictable and the funds permit me to join in to be on the right side of the trade for a couple of hours or couple of days then sure, why not.

Just juggling a few stocks atm so thats part of the frustration at times (being where ever you need to be exactly on time when you should), but unfortunately, the amount of funds I have does no permit me to cover enough stocks simultaneously.

Tell you what though, I will let you know when and if I do though :)

[mamos]

SEXY is the word for Zicom. The word doesn't come to mind when associated with manufacturing, but investors in the tightly held Zicom Group would probably disagree - the stock has almost tripled in three months.

The rise in the ASX-listed Singapore-based company has coincided with a profit upgrade on February 7, which pre-empted its interim profit result in which revenue climbed 49 per cent to almost $S80 million (A$54 million) producing a $S10.4 million profit before tax, more than double the same period a year earlier.
The company has turned itself into a type of manufacturing conglomerate, but a key to its growth is its success in the oil and gas field, producing winches for drill rigs, as well as gas meters and regulating systems.


The oil and gas division contributes about 42 per cent of revenue.
But Zicom's profit growth was also due to its other two divisions. The construction division (40 per cent of sales) increased profit because of lower costs after transferring from Australia to Thailand its factories that make cement mixers.


The rest of the income comes from its engineering division, which has operations as diverse as medical technology to manufacturing production lines.
With its shares at 57¢, the company has $120 million market cap, and founder and chief executive G. L. Sim says the key to the company is not that the oil price is climbing back towards record levels, but the 50 or so engineers it employs in Singapore, Indonesia and Bangladesh.


They provide the innovation and technical expertise he says is central to Zicom's business.
Helping things along was also a bullish report by Austock Securities in late March, valuing the stock at 75¢.
The climbing stock price comes as Ventrade (a Singapore bus construction company) sold most of its 14.4 per cent stake, which finally gave investors some shares to trade. The stock is tightly held. with G. L. Sim owning 34 per cent and senior management holding another 20 per cent.


A lack of liquidity is just one risk in this manufacturing play. Other factors include the difficulty in keeping on top of its operations, which are mainly in Singapore and Thailand. Most of its earnings are in Singapore dollars, which have been declining against the Australian dollar.
Lastly, its engineering division's growth relies on start-up research and development projects.
In the end, this could be complicating matters for Zicom. "We just focus on making machines," as G. L. Sim says.



Read more: http://www.smh.com.au/business/share-price-on-the-boil-as-zicom-sizzles-20110418-1dlmp.html#ixzz1Jv2j8RXS

[Sauce]

Thanks Mamos,

ZGL has been my best performing investment so far in 2011. The key to this company is the management. It is very well run, the incentives are all in the right place for a total shareholder focus, and they are good at managing capital.

As much as they operate in a good space, Zicom it is a bet on the jockey(s).

Regards,

Sauce

[drillfix]

It seems hard to believe I was holding this at 20c a while back, traded it a few times and left it having watched it fall though now is off and surely running.

Sure will consider a re-entry on this one however the daily looks like it needs to take a breather, IMO, but may catch a swing trade on the Hourly which has started taking a breather, so perhaps tomorrow or there about will do it. Lets see how the overall markets pan out over the next few days.

[Sauce]

It seems hard to believe I was holding this at 20c a while back, traded it a few times and left it having watched it fall though now is off and surely running.

Sure will consider a re-entry on this one however the daily looks like it needs to take a breather, IMO, but may catch a swing trade on the Hourly which has started taking a breather, so perhaps tomorrow or there about will do it. Lets see how the overall markets pan out over the next few days.

Hi Drilly,

You have highlighted one of the reasons I am not a trader.

I am sure some people can do it profitably, but its not for me.

Cheers

Sauce

[drillfix]

Hi Drilly,

You have highlighted one of the reasons I am not a trader.

I am sure some people can do it profitably, but its not for me.
Cheers
Sauce

Hi Sauce,

Yep, well its kinda like each to their own hey.

After all, there is no actual right or wrong here, there is only what is good for the investor and if the investor can ride out both the good and the bad side of a trade in a company be it long term or short.

For me, (at the time), I made a couple of hundred on a quick trade, and then lost that believing a repeat trade was on its way back when ZGL was 20c but then for whatever reason it fell to 11.5c or there about which was hard to see at the time exactly why to buy more, or knowing exactly where a bottom was.

Again, all in hind sight. Things can change so quick in these markets though and trader or no trader, it always pays to keep ones finger on the pulse so to speak, IMO.

[h2so4]

Thanks Mamos,

ZGL has been my best performing investment so far in 2011. The key to this company is the management. It is very well run, the incentives are all in the right place for a total shareholder focus, and they are good at managing capital.

As much as they operate in a good space, Zicom it is a bet on the jockey(s).

Regards,

Sauce

If Monty and Sauce are on it, it has to be a good bet.:)

[percy]

If Monty and Sauce are on it, it has to be a good bet.:)

You are right on it there h2so4.

[drillfix]

If Monty and Sauce are on it, it has to be a good bet.:)

Dont really know about who is on or off with this, but I am waiting for this darn ZGL hourly to do its thing for me, but it just ain't quite happening yet.

Meaning, there is divergence in the 60 min MACD histogram yet the stock does not want to take a breather..

Was hoping to pickup a few on a dip but guess I may need to cough up or wait it out a bit longer.

Ahh well, one day no doubt.

[percy]

[QUOTE=drillfix;344024]..

Was hoping to pickup a few on a dip but guess I may need to cough up or wait it out a bit longer.



Those of us holding hope it is a lot longer.

[drillfix]

Those of us holding hope it is a lot longer.


That is completely understandable Percy and I dont blame you for hoping as such.

What price was your entry or have you been a holder for a while?

I used to hold these at around 20c but circumstances back then dictated to me that I must sell which was fine, and then I missed the turnaround as its quite tricky to keep the finger on the pulse for all stocks at the same time.

[percy]

That is completely understandable Percy and I dont blame you for hoping as such.

What price was your entry or have you been a holder for a while?

I used to hold these at around 20c but circumstances back then dictated to me that I must sell which was fine, and then I missed the turnaround as its quite tricky to keep the finger on the pulse for all stocks at the same time.

Brought 10,000 at 42.5cents on 25/3/11 after another poster kindly sent me a PM.Had to laugh because the poster alerted me on thursday night before Montgomery tipped it.I think they were 38cents on the Thursday,so I ended up chasing them,I think they went to 44cents before coming back.I was also short of money at the time, so was lucky to find the funds.Donot tell anyone but I used a bit of money I had put away for tax.!!! lol.

[drillfix]

I was also short of money at the time, so was lucky to find the funds.Donot tell anyone but I used a bit of money I had put away for tax.!!! lol.

No worries there Percy, mum's the word and that info will be between You, me and the rest of the internet.

Well done though Percse you have scored well yet again.

Pretty soon you will be able to buy a Thai Restaurant rather than shouting thai :P

[percy]

Must admit any time I have used money I should not have used in the market I have usually lost it.!!!
Buying the Thai Restaurant is certainly starting to look like the best option.!!! great advice,as usual.!!! lol

[drillfix]

LOL percy~!

[mamos]

Biobot Surgical: Saving lives, one robot at a time. Fri, Apr 29, 2011
The Business Times http://business.asiaone.com/a1media/site/common/blank.gifBy Victor Katheyas
SURGERY requires great skill, aptitude and experience - but that doesn't mean it can be performed only by humans. It can be performed by robots too, said Deli Li, chief executive officer of Biobot Surgical Pte Ltd.




Dr Li: Says the end goal is to list Biobot Surgical on the Singapore Exchange main board. The company may also list on the New York Stock Exchange. The company's product, a surgical robot called the 'iSR'obotTM Mona Lisa' or the 'Mona Lisa' for short, does just that and is used for prostate cancer biopsies.


It has already obtained regulatory approval, and has been used at the Singapore General Hospital for about 300 biopsies thus far.


It is also used by hospitals affiliated with universities abroad such as the University of Southern California, Cornell University and the National Taiwan University. Just recently, the company received an order from Canberra Hospital in Australia worth some US$70,000.



'Game changer'


The 'Mona Lisa' is a 'game changer', said Dr Li, because it is an 'active' surgical robot. It possesses 'basic intelligence' and can run 'automatically' because it leverages on augmented virtual reality technology, which facilitates ultrasound imaging. Therefore, surgeons can view the affected organ and plan the procedure from 'millimetre to micrometre'.


In addition, it runs on a digital platform, thus allowing surgeons to review a particular procedure and subsequently repeat it on other patients. This is unlike 'passive' robots which are based on a master-slave system and require the surgeon to control every movement of the robot.


While the underlying technology could be used in a wide variety of medical procedures, the company was reluctant to develop a prototype to be used for more complex procedures, at least in its initial stages. Instead, it preferred to focus on prostrate biopsies, which Dr Li described as being 'precise but low-risk procedures'.


It is happy with that decision, because the market has taken well to the 'Mona Lisa'. This is because the surgical robot presents a number of advantages over prevailing manual methods of performing the prostrate biopsy.


Firstly, the 'Mona Lisa' is more accurate and reliable than manual methods, said Dr Li. Manual methods, he explained, did not always identify existing cancerous growths. This was because cancerous cells in the prostrate gland did not necessarily clump together. Very often, they were dispersed throughout the prostrate gland. Therefore, if the biopsy extracted non-cancerous instead of cancerous tissue, the patient would not be diagnosed with cancer right away. The usual practice, he said, was to ask the patient to return for another biopsy about six months later, and the cycle would repeat itself.


The 'Mona Lisa', however, went some way in remedying this problem, he said. Its intelligent image-guided system allowed it to identify and locate the exact location of all cancerous cells. In appropriate cases, it allowed surgeons to administer drugs directly to the focal point of the cancer - but not anywhere else - so as to treat the cancer efficiently.


Secondly, the 'Mona Lisa' represents cost savings for patients in the long run. While the procedure would cost somewhere in the region of US$600, which was slightly higher than the cost of a manual procedure, it would be cheaper in the long run. This was because the procedure would need to be performed only once - not multiple times over six-month intervals.



Starting out


Dr Li 'never wanted to work for others' and thus always aspired to be an entrepreneur. 'Life is very short,' he said, 'so if you want to do something, you must try.'


However, Dr Li knew that some industrial experience would be necessary in order to pursue his ambitions. Therefore, he decided to join German company Dornier MedTech, which was involved in the medical technology industry, sometime after obtaining his PhD from Hong Kong University.


His stint in the company made him realise the tremendous potential of surgical robots. At that time, however, research relating to surgical robots was not yet mature and was confined to universities. Further, the market was not yet ready to accept the technology, he said. The idea would have to wait.


Instead, he decided to quit the company in 1999 to set up a research support company. This entailed developing prototypes, among other things, for research institutions such as Nanyang Technological University (NTU). This was feasible in the interim, he said, because it required a very low capital investment.


Finally, in 2007, he knew that the time was ripe to commercialise the surgical robot idea. This was because a similar product had already been introduced into - and received well by - the market. Thus, he was confident when he set up Biobot Surgical together with a professor from NTU (who, unfortunately, has since died).



Funding deal

After some time, Dr Li realised that the company needed funds in order to grow. However, he did not simply want venture capital investment - he wanted 'professional support' as well.
He asked the Agency for Science, Technology and Research (A*Star) to put the company on its 'incubator' list, in the hope that potential investors would take note of its potential.
Soon enough, Zicom Group, which is listed on the Australian Securities Exchange, got in touch with Dr Li.
Zicom, which specialised in mechanical, hydraulic, precision and automation engineering, wished to have greater exposure in the medical technology market. Dr Li, on his part, wanted to leverage on Zicom's investment, contacts and industrial presence.
He thus met the chairman of the Zicom board in Singapore and advanced his case. Four days later, they met again and - without the presence of lawyers and accountants - agreed that Zicom would invest $3 million in Biobot Surgical. Despite the absence of a professional valuation of the company, Zicom was confident that there was a great upside to the business, said Dr Li.

Future plans
As Dr Li sees it, the world - and every hospital in it - is his oyster. He hopes to provide surgical robots to most - if not all - hospitals in the world eventually.
In the meantime, the company intends to focus on other projects which are currently in the pipeline. These include a surgical robot which is to be used for thyroid cancer biopsies. This project is largely funded by the Prime Minister's Office, and involves collaboration with the National University Hospital. It has already passed the animal testing stage, and clinical tests will be done later this year. If all goes well, Dr Li expects to be able to introduce the product to the market next year.
The main challenge facing the company, he said, were the rigorous levels of regulatory approval required. While this was necessary in the medical technology industry - because the lives and welfare of patients were at stake - it meant that the company could see the return on its investment only quite some time after designing the product. Therefore, the company expects to turn profitable only in 2012.
But that is not dampening the young company's spirits. It already has orders for about 30 units of the 'Mona Lisa' for this year alone, and has projected sales of more than 200 units in 2012. It intends to increase the size of its workforce - from 19 at present to about 50 - to cope with the increase in demand. The end goal, said Dr Li, is clear - to list on the Singapore Exchange main board. The company may also list on the New York Stock Exchange. Besides the ability to raise more finance, which may be ploughed back into the company's research activities, such listings would inspire confidence in the hospitals with which it would transact business. This would add to the new company's credibility.

[Sauce]

Thanks Mamos. The good news is that ZGL doesn't need it's startups to fire to provide decent returns to current shareholders. So its all upside if they do.

[drillfix]

Thanks Mamos. The good news is that ZGL doesn't need it's startups to fire to provide decent returns to current shareholders. So its all upside if they do.


Yep, Nice article there Mamos,
Although Robots operating on a mens goolies is something I never thought they would automate ...LOL

Jumped in ZGL yesterday on close.

Seems like this is going to test the previous high 65c (sooner than later), yet needs to make a higher than yesterdays high of course.

What happened in the Change of SH notice, as in did somebody sell or did something get diluted?

[drillfix]

Out now for brokerage.

The hourly now looks set to take a breather and also takes on a head and shoulders formation which I am presently uncomfortable with.

Does not seem to be much interest today, so perhaps I will come back or re-visit when there is.

Good luck to all holders.

[percy]

Criterion in article headed "copper looking good after Peru election" ; "Zicom trades on a current year earnings multiple of 7.3 compared with the sector average of 15 times.We rate Zicom a buy." www.theaustralian.com.au/business/opinion

[steve fleming]

If Monty and Sauce are on it, it has to be a good bet.:)


So Monty coveniently sold before the carnage without letting his value.able groupies know!

"We don’t own ZGL after receiving some feedback that some of their lines were experiencing a slowdown. "......"as I have said on numerous occasions you cannot manage your portfolios by following what I do. You have to have your own plan and strategy. Whatever your research was that lead you to buy any stock, you have to follow that. I am no obligation here or on any tv or radio program to revisit any stock discussed nor keep you up to date with any changes to my view. "

http://blog.rogermontgomery.com/value-able-tv-were-you-like-a-kid-in-a-candy-store-today/#comments

[drillfix]

So Monty coveniently sold before the carnage without letting his value.able groupies know!


I am no obligation here or on any tv or radio program to revisit any stock discussed nor keep you up to date with any changes to my view. "

http://blog.rogermontgomery.com/value-able-tv-were-you-like-a-kid-in-a-candy-store-today/#comments


LOL, aint that always the way though Steve, but it seems because they have their own sort of springboard platform, its always Ok to preach the value in stocks and of course "Especially once you are set in them" :P

Nearly a complete license to print money dont ya think...haaha~!

[mark100]

So Monty coveniently sold before the carnage without letting his value.able groupies know!

"We don’t own ZGL after receiving some feedback that some of their lines were experiencing a slowdown. "......"as I have said on numerous occasions you cannot manage your portfolios by following what I do. You have to have your own plan and strategy. Whatever your research was that lead you to buy any stock, you have to follow that. I am no obligation here or on any tv or radio program to revisit any stock discussed nor keep you up to date with any changes to my view. "

http://blog.rogermontgomery.com/value-able-tv-were-you-like-a-kid-in-a-candy-store-today/#comments

haha yes I read that today too. Serves his worshippers right for blindly following his tips but also unethical on his part. I have done quite well at times trading his picks when all the worshippers were buying so I can't complain.

[drillfix]

haha yes I read that today too. Serves his worshippers right for blindly following his tips but also unethical on his part. I have done quite well at times trading his picks when all the worshippers were buying so I can't complain.

LOL, way ta go Mark. Beat all the worshipers to the sell trigger.

I wonder how that all works though, as in, all those worshipers whom buy and at what point do they buy, and at what point do they sell? Or who actually triggers the thought for them to sell or do they wait for their next instructions via email?

Or something, being like: Your Messiah has now made his 30% and is now out of the trade because xyz reason. So then everybody sells and the stock ends up back to or lower from when it started its run? LOL

[percy]

It is with regret,that I must report I am still holding.!!!!!

[h2so4]

Not religious percy?
I suspect there are other reasons for your conviction. If that is the case then now might be a time to buy rather than sell.
I am holding and I am sure sauce is to?????????

.......mind you if CUE goes lower today I might do a swap.
:cool:

[Sauce]

Not religious percy?
I suspect there are other reasons for your conviction. If that is the case then now might be a time to buy rather than sell.
I am holding and I am sure sauce is to?????????

.......mind you if CUE goes lower today I might do a swap.
:cool:

Yep still holding. Closed at my original buy price. Suspect it will fall well below it today :)

Currently trading very close to the book value of its equity, and yet it made an 18pc return on that equity? I will sleep very easy regardless of how much it falls today. However suspect results as good as the first half won't be seen until 2013 - will be interesting to see if the oil & gas project income can prop up earnings during 2012 to squeak out a flat year. From what I can tell, their Offshore Marine business should pick up strongly from 2013 onwards, the offshore rig industry and associated shipbuilding appears to be going through the roof - but there is a lag in this due to timing of demand for Zicom's products.

Same reason there was a lag from oversupply before GFC that his this second half.

ZGL is far from the perfect business, but it is very cheap - about 30-50% below where it should be in my opinion - and that's after being well pared back from new result.

And about to get cheaper?

Yes, the Montgomery love blog is vomit inducing. Suspect some of his lemmings are throwing themselves off the sides now while its undervalued, having probably bought a lot higher following his lead.

Regards,

Sauce

[percy]

Sauce,
thanks for your update.I have not sold any shares.Trying to keep my powder dry.

[steve fleming]

haha yes I read that today too. Serves his worshippers right for blindly following his tips but also unethical on his part. I have done quite well at times trading his picks when all the worshippers were buying so I can't complain.

I personally think he is a hypocrite.

He is constantly talking to his groupies about buying "extraordinary A1 businesses" , investing over a five, ten or twenty year horizon, ignoring short term market noise etc, etc - then he sells out of ZGL on a "rumour" (no facts) after only holding for a few months.

Doesn't practice what he preaches, therefore has zero cred in my books.

[percy]

I personally think he is a hypocrite.

He is constantly talking to his groupies about buying "extraordinary A1 businesses" , investing over a five, ten or twenty year horizon, ignoring short term market noise etc, etc - then he sells out of ZGL on a "rumour" (no facts) after only holding for a few months.

Doesn't practice what he preaches, therefore has zero cred in my books.

As always a great post.Thanks,I think we all would agree with you.

[mamos]

Visited all their premises in Singapore mid July and meeting with management.

Deck machinery was definitely slowing down. Not much work going on in the yards and probably wont for next 6 months.

Oil and gas definitely has lots of potential but there is execution risk. Based primarily in Bangladesh.

A lot of effort has been put into start-ups and likely to be FY13 story.

FY12 going to be tough year at this stage according to management.

Company is in a lot better position than 3-4 years ago as much more diversified now. Medium term they are aiming to have equal contributions from oil and gas, offshore, precision engineering and construction

[h2so4]

mamos
Who are you refering to? Was it Monty, percy or yourself who was snooping around Zicom's dock yards?:confused:

[Sauce]

Haha It was Mamos h2 :)
Perhaps he was the mole who leaked his info to Monty!

[steve fleming]

roger about to talk about ZGL right now

http://www.2gb.com/

[steve fleming]

roger about to talk about ZGL right now

http://www.2gb.com/

So Roger said he sold out of ZGL about 3 - 4 weeks ago.
Didn't like the director sells and he had heard about a slowdown of sales.

Don't know how that impacts his long term investment theme.

He has been buying MTU and Decmil the last couple of days