Powermatic Data Systems

[desmondxyz]

very strong buying today.....popped 15% so far....something good coming?

[BlueKelah]

i recall this counter. the shareinvestor founder michael leong was top 3shareholders before.
looks undervalued but dividends flat at 1c for donkey years.

Yep very steady dividends with net cash >50% Mcap and RNAV of possibly ~30cents+. Dividend of 1c makes a yield >5%.

Earnings wise, they have just turned around from loss to profit so pretty much business has bottomed out, upturn more likely. Steady 600k+ rental income is also a good baseline for their profits.

Management is headed by a few top engineers, one director involved with A*STAR.

Pretty confident this value counter won't disappoint in the long term.

[MOV]

As far as I can search, company has never done share buyback before, so maybe that was the catalyst.

[WolfT]

Is it trying to keep above 20cts so that it can meet the sgx new rules by next yr? Maybe it is cheaper this way? Ha...



( yes lar, very vested lar)

[BlueKelah]

Is it trying to keep above 20cts so that it can meet the sgx new rules by next yr? Maybe it is cheaper this way? Ha...

( yes lar, very vested lar)

if it is trying to do that then I am not complaining

[CigarButts]

After looking at their balance sheet. Bought into a small position at 0.185

[CigarButts]

Did a short writeup. Hope I got the numbers correct. (My 2nd time doing an analysis so might some calculations may be wrong)

Powermatic Data system Ltd

This is a company specialising in distribution of IT products.

With Cash at $18749 and Properties valued at $18608. This company has a Net tangible asset value of $37357. From its balance sheet it does not have any long term liabilities. So current liabilities stand at $3646. So with its share base of 173289, Powermatic data system ltd has a NTA per share of 0.194 which it is trading now at about 8% discount(current share price is 0.182).

However you need to take note that this is an illiquid stock so collecting this share will take lots of time. Let us take a look at its dividends history.

They have given dividends from 1993 - 2003 and then stopped until 2008. Lets take a look at the dividends history since 2008. (Note this data was retrieved from an app and may not be 100% accurate) Ignoring the 2003- 2008 period. It maintains a steady dividend stream of $0.01. No real increase in dividends over the years.

2008 - $0.01
2009 - $0.01
2010 - $0.01
2011 - $0.01
2012 - $0.01
2013 - $0.01
2014 - $0.01

Vested in it due to the steady stream of dividends and the assumption that the dividends can be maintain. This is a case of buy the assets and get the business for free. By the way I am still collecting it at $0.182. Patience is the key. No point pressing up the price as this will affect my dividends yield. Strategy for me is to collect dividends(>5%) for this counter while waiting for value to be unlocked.

[desmondxyz]

Did a short writeup. Hope I got the numbers correct. (My 2nd time doing an analysis so might some calculations may be wrong)

Powermatic Data system Ltd

This is a company specialising in distribution of IT products.

With Cash at $18749 and Properties valued at $18608. This company has a Net tangible asset value of $37357. From its balance sheet it does not have any long term liabilities. So current liabilities stand at $3646. So with its share base of 173289, Powermatic data system ltd has a NTA per share of 0.194 which it is trading now at about 8% discount(current share price is 0.182).

However you need to take note that this is an illiquid stock so collecting this share will take lots of time. Let us take a look at its dividends history.

They have given dividends from 1993 - 2003 and then stopped until 2008. Lets take a look at the dividends history since 2008. (Note this data was retrieved from an app and may not be 100% accurate) Ignoring the 2003- 2008 period. It maintains a steady dividend stream of $0.01. No real increase in dividends over the years.

2008 - $0.01
2009 - $0.01
2010 - $0.01
2011 - $0.01
2012 - $0.01
2013 - $0.01
2014 - $0.01

Vested in it due to the steady stream of dividends and the assumption that the dividends can be maintain. This is a case of buy the assets and get the business for free. By the way I am still collecting it at $0.182. Patience is the key. No point pressing up the price as this will affect my dividends yield. Strategy for me is to collect dividends(>5%) for this counter while waiting for value to be unlocked.

Great Job! Keep it going!

Btw, Any idea why there was no div from 2004 - 2007?

[CigarButts]

Did a short writeup. Hope I got the numbers correct. (My 2nd time doing an analysis so might some calculations may be wrong)

Powermatic Data system Ltd

This is a company specialising in distribution of IT products.

With Cash at $18749 and Properties valued at $18608. This company has a Net tangible asset value of $37357. From its balance sheet it does not have any long term liabilities. So current liabilities stand at $3646. So with its share base of 173289, Powermatic data system ltd has a NTA per share of 0.194 which it is trading now at about 8% discount(current share price is 0.182).

However you need to take note that this is an illiquid stock so collecting this share will take lots of time. Let us take a look at its dividends history.

They have given dividends from 1993 - 2003 and then stopped until 2008. Lets take a look at the dividends history since 2008. (Note this data was retrieved from an app and may not be 100% accurate) Ignoring the 2003- 2008 period. It maintains a steady dividend stream of $0.01. No real increase in dividends over the years.

2008 - $0.01
2009 - $0.01
2010 - $0.01
2011 - $0.01
2012 - $0.01
2013 - $0.01
2014 - $0.01

Vested in it due to the steady stream of dividends and the assumption that the dividends can be maintain. This is a case of buy the assets and get the business for free. By the way I am still collecting it at $0.182. Patience is the key. No point pressing up the price as this will affect my dividends yield. Strategy for me is to collect dividends(>5%) for this counter while waiting for value to be unlocked.

Great Job! Keep it going!

Btw, Any idea why there was no div from 2004 - 2007?

Not really sure man. Need to do some research and dig deeper.

[psolhawk]

I believe the price of PDS was around 8 to 9cents a share then. One or more substantial shareholder(s) emerged and managed to convince the conservative management that they have the financial resources to give out a dividend sustainably based on their steady cashflow and cash on balance sheet. Based on the average purchase price then, dividend yield is easily over 10%. The importance of staying convinced in your convictions.