Valuetronics

Another day of selling down for this counter. I think the selling down is overly done and could be due to the Flooding at Danshui Plant caused by Super Typhoon Mangkhut.

The company says All employees are safe from the hazards caused by the Typhoon, and the majority of the production facilities at Danshui Plant are not affected. However, the flash flood has caused power outages and this has resulted in temporary work stoppages at the Danshui Plant.


The management is currently trying to assess the full impact of the flooding on its production lines at its Danshui Plant and plans to resume production expeditiously.

The Group's insurance company has been notified and will be assessing the claim and damages in due course.


 I think this is an unwarranted event and most probably a once-off case !

 At the current price of 63 cents, yield is pretty solid at 7.5% base on yearly dividend of 4.73 cents (HK$0.27) .

 PE of 7.5x. I think Net cash per share 30.5 cents ..Zero debts. NAV 45.3 cents.


From TA point of view, it is on a Downtrend mode patterns, looks rather bearish!

Today the volume bar seems to be high and could be an indication that Supply could be exhausted!

Short term wise, likely to see a throw-back reaction to take it higher to cover the Gap at 66 cents. Resistance is at 70/73 cents .


Immediate Support is at 63 cents . Next support is at 60 cents .

I think fair value is about $1.10. Let say we factor in another 20% discount that will be giving us a value of 88 cents .

Not a call to buy or sell.

Please do your own due diligence.