Penguin International

[NTL]

Growth does not provide margin of safety, growth is projected and can come to a grinding halt just like that. Besides penguin is small cap in niche industry and can get hit by downturn which growth may evaporate. They do not have special cutting edge tech like electric or solar powered boat.

PE 5 should not be considered MOS as earnings and business can fluctuate a lot.

Cash rich and no debt show strong balance sheet not MOS.

Yield is only 5% this past year. Historically div payout has been very poor and of course no div payout policy.

And at around 24c levels when commented there was no MOS, was trading at NAV.

Now at sub 20c level it is starting to look slightly more attractive but since market seems to be marking it to oil price, it might only be worth it to start nibbling a little rather than catch a falling knife. Would wait till volume shrinks more and not much interest to vest. looking at the price action this seems to be a very speculative stock which should be purchased at 50cents on the dollar, which when dydx first highlighted before at 10c level was pretty spot on.


sent from my Galaxy Tab S

For those taking PB only for valuation, MOS means only discount to NAV.

For those taking earning for valuation, PE 5 mean 20%+5% earning yield, includes the dividend yield, is a MOS. It applies to me. Strong balance sheet is a MOS, unless you are hinting that the cash isn't real.

Penguin was in bad patch for the past years. Only after recent reforms that they begin to do better. Is it simply due to the generally global economy? Or isit that they finally go in the right direction?