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Seksun Buy-- The Sun is rising

Despite its strong earnings growth prospects, it is trading at only < 7x CY06 earnings (vs industry average of 8.3x) with close to 6% yield. CIMB believes Seksun will continue to ride on Seagate's volume growth, especially with the completion of Maxtor acquisition in end-May. Volume production of disk clamps is expected to commence in 2H06. Bottomline will be boosted with the turnaround of loss making contract manufacturing unit. Near term catalyst will come from expected positive news from the HDD industry.

 

Hi,

The volume these two days very low? Anything fishy?

 

Hi,

The volume these two days very low? Anything fishy?

 

CIMB has raised its target price to $0.53.

 

Seksun has recently been awarded preferred supplier status with Seagate for their top cover business and account for 60% of their requirements (vs 50% previously). The other major competitor Metalform is not executing well after the sale to JP Morgan. Ex-Maxtor suppliers such as Brilliant who got qualified to do baseplates is unable to get into the top cover business of Seagate due to unfavourable pricing and strong pricing power of existing suppliers such as Seksun.



Their VCM plate business is gaining market share from Cheung Woh, again due to their preferred supplier status. And again due to Seksun's preferred supplier status, they will be starting to do a new product called Disk Clamps in 2H06, gaining on existing suppliers such as JC Metal and SPI.



With its preferred supplier status, lack of competition and market share gains, net profit is on track to grow 100% this year, bringing its historical PE of 13-14x down to 6-7x. Yield is an attractive 4-5% while price to book is only 1x.

 

This counter is currently moving uptrend. Keep yourself vested if you dun wanna miss out on the profits. 

 

The result is out. I think its quite a positive one. Can visit the following link for more info.......... Seksun results
For those who are holding on to Seksun, you all are reaping what you sow now. Cheers

 

Yep I am vested.

 

Are you vested?

 

Yea their management team has been together for a long time. Dr Felix has always been my idol and he has said that those people in the senior management team are those who had followed him for a long time. Moreover, Seagate has always patronised Seksun when they ever have any new products. This speaks highly that Seksun has definitely been a strategic partner for Seagate as well.

 

Seksun has a good management team, and I have started to accumulate at around $0.35 level.

 

Can see from the trend that this stock has a support level of 0.365-0.37. Should accumulate as it goes up.

 

Great stock down here. Going to get my dividends soon. I will buy more of these stocks. Definitely a good fundamental stock.

 

0.365 Seems like a good opportunity to accumulate more shares.

 

Buy on weakness on this share. Its trending upwards in the long term. I strongly believe in the long run over the next 6months, the price will exceed the price target of 0.43 set by the respective broker house. Vested. HAPPY TRADING.

 

Dun sell your positions too early my fren, or you will be missing out the most important of this company. The way to profits is long ahead. Be patient and you will reap what you sow.

 

i am vested in this... will keep it until the ex date... unless profit outperform the dividend given out >.<

 

This is a company there is trending upwards in the long run. Seksun I would say after monitoring this company for over 2 years is quite a crisis-resistant company and is not very volatile. This is good for people who are keen in investing rather than just trading alone. I would strongly recommend a buy for this company. My view is the same with the broker house. Maintain outperform with target price of 0.43. I think that target price is for the midterm which is around 1 month bah.

 

InvesToMan, I fully agreed with you that this company is still pretty undervalued as compared to the industry average. Alot of hidden facts in this company, gonna dig out one by one very mafan. haha... Seksun is a good share to accumulate at this point of time. Still trading at fair value I believe. I will buy 25lots 2molo market open. Pretty asset rich and I think we will ''HUAT'' with this company.

 

Hi prettylisa, I am vested in this stock. I have hold on to Seksun for almost 2years with annual dividends of around 5% pay out in HY and FY respectively. I had accumulated Seksun shares over these 2years and had seen how it had developed through the 2years. Its pretty undervalued as compared to its industry peers. It will be a good idea to buy Seksun if u are looking for a diversified player in the HDD. Magnecomp and MMI heavily depend on Seagate for their sales and profits while Seksun had diversified into EMS with a very prospective room for growth. Its revenue is at a record high 205 million with total assets of 231 million. Basically the NAV is around $0.35 per share and you basically pay a $0.03-$0.04 premium with respects to its NAV at current price. It has a consistent dividend policy and an iconic figure who is the CEO Dr. Felix Ong Kim Huat. I believe this company will really "HUAT" in the middle to long term. In the short term, I believe we will see some resistance with the ratio of buying power to selling power at 1:1. Happy trading