Lantrovision

[dydx]

This morning Lantrovision is again quite actively traded, hitting a new high of $0.395. Something brewing, or it is just some of those people involved in the preparation of the coming AR have decided to buy some shares for themselves, having a chance to have an early review the document?

I suppose shareholders of Lantrovision and potential investors have to bear in mind that the latest (as at 30Jun13) NAV/share already stands at $0.3817, and the B/S is full of cash. Rationally speaking, as an established and steadily profitable business, the fair value of the Lantrovision share should be at least at a decent premium over its latest NAV/share. The declared $0.02/share Final dividend also provides quite an attractive yield.

[dydx]

FY13 (ended 30Jun13) AR is out and makes interesting reading.....
http://infopub.sgx.com/FileOpen/LanTroVi...leID=19452

[dydx]

Another new major multi-storey data centre infrastructure investment in Singapore. This time round it is going to be a 7-storey industrial building by Mapletree Industrial Trust and to be constructed by Tiong Seng at a cost of $42.7m.....
http://infopub.sgx.com/FileOpen/TiongSen...eID=260996

I suppose when the computers, digital storage, and other supporting electrical/electronic infrastructure and equipment are included, this new data centre will end up costing a lot more. I just hope that Lantrovision will play a major role at the later stages of the build-up of this major data centre...

[MOV]

1Q results just out, revenue increase 21% but gross margin down to 29.8%. Otherwise company has been able to keep quite a tight lid on other expenses. Overall cash and equivalent increased to $79mill which is approx. 87% of market cap.

Going forward, the company may convene EGM for share buy-back mandate. That's a shareholder positive move if they cannot reinvest their mini-bank.

[dydx]

Lantrovision is calling an EGM on 19Dec13 to seek shareholders' approval for a Share Purchase Mandate (which will be effective till next AGM date, and subject to a max. 10% of Lantrovision's issued share capital) enabling the company (1) to buy back its own shares from the open-market by paying up to 105% of the Average Closing Price (over the last 5 market days), and (2) to make an offer to all shareholders by way of an off-market purchase to buy back shares at up to 120% of the Average Closing Price .....
http://infopub.sgx.com/FileOpen/Lantro_N...eID=266391

With so much cash in the company's latest B/S as at 30Sep13......
http://infopub.sgx.com/FileOpen/Lantro_Q...eID=262978
Lantrovision has no problem buying back and paying for 10% of its issued shares. In fact, every share to be purchased below its latest NAV/share of $0.3707 (adjusted for the $0.02/share Final dividend for FY13 paid on 15Nov13) will enhance both the NAV/share and EPS of all remaining shares.

Of course, I hope Lantrovision's BOD will be willing to pay more than the company's latest NAV/share when buying back shares, as quite obviously as an established and steadily profitable business, each Lantrovision share ought to be worth a lot higher than its NAV/share in terms of fair intrinsic value.

[dydx]

Lantrovision is due to release its 2Q results in the next few days.

Share price wise, it is heartening to note that the counter has displayed great strength in the last 3 months since it went 'XD' on 29Oct12 for the $0.02/share Final dividend for FY13 (ended 30Jun13). In fact, Lantrovision has so far out-performed the STI by some 11% since mid-Nov13…..
http://finance.yahoo.com/q/bc?s=Q7W.SI&t...l&c=%5Esti
If we add back the $0.02/share dividend to the last done share price of $0.355, actually Lantrovision is now again close to its 12-month high of $0.38 first recorded on 23Oct13.

I hope to see an Interim dividend in the coming 2Q result announcement - again wishful thinking?

[valuebuddies]

Results is out and looks good: http://infopub.sgx.com/FileOpen/Lantro_R...eID=274278

Revenue up 27% and gross profit up 38%. EPS for first 6 months was 3.06c, C&CE stood at 29.6c, versus share price of 36c.

Not vested.

[dydx]

Based on the 2Q results…..
http://infopub.sgx.com/FileOpen/Lantro_R...eID=274278 [2Q results announcement]
the underlying profitability of Lantrovision's well-established regional structured cabling business is showing visible and rather strong QoQ increase, backed by rising sales/revenue at a brisk rate of increase at 20+% YoY. As before, the latest (31Dec13) B/S remained rock-solid, with a further rise in its obscene-size net cash reserve to close to $80.0m - equivalent to approx. $0.295/share!

A relevant question: Why shouldn't Mr Market be willing to price such a fine business and the Lantrovision share above its latest NAV/share of $0.3915?

[valuebuddies]

A relevant question: Why shouldn't Mr Market be willing to price such a fine business and the Lantrovision share above its latest NAV/share of $0.3915?

1. It is a small player which not many people know about
2. The dividend yield is not very attractive
3. There is no record of constant and consistent dividend payout
4. Share consolidation and rights issue in 2012 made people to stay away as (i) they don't understand or (ii) they don't like it

[dydx]

Lantrovison's share price has managed to inch upwards further from the $0.34 level since mid-Jan14, hit a new high of $0.38 in the last month, and close at $0.37 today (20Mar14)…..
http://sg.finance.yahoo.com/q/bc?t=1y&s=...1&c=%5ESTI
It has also out-performed the STI consistently since Aug13 and by some 35% to date.

3Q (ending 31Mar14) results should be out by early May, and the full-year results by end-Aug. I think it is also reasonable to expect a much bigger Final dividend (last FY13: $0.02/share).