OTI

[KD]

Cantab,Skinny - correct thinking IMO. Make the most of this window.

[KD]

Well here's something to keep an eye on. My AspectHuntley's database tells me the company now has a website

http://www.orientech.com.au/

....which I find out is under construction.

[robbo]

Hi KD..
Yes OTI does continue to represent excellent buying at 12, 12.5, even 13 cents...
On my assessment ---if you Look at consistency OVER 3 Years--OTI comes in at 242% Growth and over 1 Year 188% Growth---with EPSG over 2 Years being a whopping 270+ %Growth Per annum.. The company is Profitable on a Adjusted Basis--55&, with healthy gross margins which should now improve more so. revenue continues to increase on a compounding basis, with ROE being > 30 % and return on assetts growing steadilly above 8 % for the past 3 Years, and P/Earnins--p/e:a smidge over 5.

For me no news is often GOOD news, and thin trading just represents not a Zillion shares on offer for the volatility monkeys to swing from Tree to Tree.

OTI are having their Annual General Meeting in Sydney in just under a fortnight to be on 6/05/04, here in Sunny Sydney.

I'd be happy to ask any questions any interested parties at Share Trader would like asked, and get answers from Directors....I'll be popping my head in anyways.

Love all your excellent thoughts and comments.
For all those on this thread....as we go through the current minor correction/wobblies...what do we like oput there?? Does anyone agree with me that CCV, JBM(is that 13-14% annualized fully franked dividends I calculate..??), MXI, ATR, KOV, GUD FUN FAN and FWD are again looking like okaay fundamental bargains. On the small cap side, what about OCL, GPO, EMI and BQT..**for those following ATR see my chicken and/or the egg question...

Hope you all have some CASH put to one side to take advantage of some of the Bargains coming into view,
CHEERS,
davidrob

quote:Originally posted by KD

Well here's something to keep an eye on. My AspectHuntley's database tells me the company now has a website

http://www.orientech.com.au/

....which I find out is under construction.

[thereslifeafter87]

I'd have to agree with you on FAN and ATR, I bought into fan at $2.60, before I sold a bunch at around $3.50 to buy some ATR. Still hold a decent amount in relation to my portfolio.

I also just bought into OCL. They look good.
Another coy you might like to have a look at is CCP - still quite cheap IMO.

ARP might also be a good opportunity with the Aussie dollar dropping against the US. Their profit was up 18% on last HY even with they Huge rise in the $AU.

Yes, I hold all these coys.

[robbo]

Hi there thereslife after87,

Thanks for your thoughts. Yes I'm a very very big wrap for OCL.. One of those ones for the fundamental analysts who just let the consistent compounding figures do the talking.
Think Objective's profits and revenues vis a vis their Price, reps excellent VALUE. Also OCL are in the right niche and space with such very credible significant tender wins.
However its very thinly traded, and the Market just seem to be avoiding it largely at the present. Any thoughts on why this may be so??? Can't really work out Market's indifference and Under-Valuation myself. Love your feedback!!! Thanks for telling me to have a peek at CCP and ARP. Do you think the P/E on ARP, says its a bit too Fully Priced?? Don't understand quite what the acronym IMO means though. Please fill me in!! I know I'm probably a bit slow on the up-take.
Have a Good Day.
davidrobquote]Originally posted by thereslifeafter87

I'd have to agree with you on FAN and ATR, I bought into fan at $2.60, before I sold a bunch at around $3.50 to buy some ATR. Still hold a decent amount in relation to my portfolio.

I also just bought into OCL. They look good.
Another coy you might like to have a look at is CCP - still quite cheap IMO.

ARP might also be a good opportunity with the Aussie dollar dropping against the US. Their profit was up 18% on last HY even with they Huge rise in the $AU.

Yes, I hold all these coys.


[/quote]

[KD]

davidrob - thanks for offer to take questions to AGM. I've no specific questions but would be interested if you can get more of a 'feel' for OTIs vision for their future. They are limited at present due to inability to meet demand and in my opinion (IMO) would seem to have real prospects for expansion beyond their new production facility.

By the way, I was in a boat shop the other day which sold only
Apollo batteries. Of course I checked out the price of the batteries ... no higher than normal (just changed my boat battery at Christmas and car battery in November). Not sure what to make of that but would have felt better had they been at a higher price. Mind you - I keep reminding myself of the great thing about batteries from a manufacturers perspective - they always need replacing!

Regarding the companies mentioned by Thereslife - a great selection of companies with solid and consistent EPS growth. I have not seen another company apart from Westfield Holdings with more consistent year on year EPS growth than ARP - very, very steady at about 20% per annum. Apart from currency issues ARP would have made this mark last year and should compensate should there be a rise in $US. I see ARP as a core stock in my portfolio for this reason and believe it deserves current PE. I do not hold CCP or FAN but they meet my criteria for growth and I have them on close watch. I've had a quick look at OCL thanks to posts here and elsewhere (not sure where now). Just a glance at figures at this stage so not prepared to comment further. BTW - today's notices for FUN are worth a read (I do not hold). I also think AEN is worth keeping an eye on - their revenue growth increases month by month and underpinned by solid contracts (I do not hold AEN either). I hold RDF at sub 80c and believe this company has many, many attractive features (market leader, high barriers to entry, potentially massive market, good management etc etc). Although price of many of these stocks have risen dramatically - price will continue to gain traction should there be, as would seem most likely, continued positive results. I do not know of any stocks with ATR like credentials that haven't risen markedly in price in the last 12 months. Alban may be onto something with AFC though - track record for AFC is not as long as above stocks (also illiquid but so are some of the above). Remember though, despite price rises many of these stocks still trade on a low PE (eg ATR, OTI) or, at least reasonable PEG ratio. Lastly I'm with Dimebag on ION - hard to resist buying more at current price but acknowledge greater risk (and potentially reward) than stocks mentioned above.

These are just some off the cuff thoughts and hope they may provide some leads. Appreciate your enthusiastic posts davidrob.

[KD]

Just caught up with today's price action re ION and todays (typically) frank and detailed announcement. Above comments were made with respect to earlier price and prior to this new information which I haven't had time to digest (although market seems to like postive comments re Ford contract). Very pleased to see today's bounce and like Dimebag believe there is much to be learnt in this case no matter how the story ends up panning out. It may take a while for me to break even on ION though.

[skinny]

Davidrob - good questions above - 2 others from me if you get the chance:

- are the expansion plans still on schedule ?
- how are all the smaller outfits handling the higher led prices ?
(i.e. I am hoping there are lots of them going bust and OTI is gaining market share).

thanks a bunch !

[KD]

Davidrob - I hope you get an opportunity to raise above questions - Checking out latest lead prices - they are still on the decline - I'm sure there will be much to be said in this regard at meeting anyway but nonetheless interested in companies view on where price will settle and impact of prices on profitability over recent March, April period.

[robbo]

Just wrote a great long bloody response to say YES I will definitely be asking all these questions and more.
davidrob

quote:Originally posted by KD

Davidrob - I hope you get an opportunity to raise above questions - Checking out latest lead prices - they are still on the decline - I'm sure there will be much to be said in this regard at meeting anyway but nonetheless interested in companies view on where price will settle and impact of prices on profitability over recent March, April period.