Avi-tech Electronics Ltd announced that its subsidiary, Avi-Tech Verde Inc. (ATVI) is venturing into the energy efficient and renewable energy market for LED and high brightness LED products. It has appointed Mr James Rhodes, former managing member of Verde Designs, a leading US supplier of high quality solid state lighting products, as new CEO of ATVI. Management sees tremendous opportunities in the high brightness LED market, which is forecast to grow from US$5bn in 2008 to US$20bn in 2014.
Although we see great potential in the LED market, competition is also intense. Our forecast has not imputed any significant contributions from this new venture. Maintain Buy recommendation with target price of S$0.30.
Looking at the posting below, it sure looks like times have turned hard for Avi-Tech. Stock now at about 10 cents. Released FY11 results, and it's a fall in profit.
Note an interesting point: Avi-Tech has accumulated $37.5m in net cash!
Abt 10.9Â cents a share! Cash = stock price.
The downside is practically nothing.... Upside? well... it's up to the market
A teeny weeny 0.025 cent/share Final dividend was declared.
As at 30 Sept, Avi-Tech had a net cash balance of $36.7m, which is equivalent to $0.107/share. This is equal to the last done share price was $0.108. Avi-Tech may be a not well-known company but hey, it is not a S-chip and it is a value stock. Agree?
Company has finally started buying back its shares, albeit very small quantities. Aside from its nice cash hoard, it's important to watch how its biz performs. In the quarter ended Sept 11, it lost S$1.3 million. I think with the semi con industry not looking great, Avi-Tech will not have an easy time in the near term.
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