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Teledata was divested in May 2004. Cash & cash eqvi.=$37.362m as at 1H06, so the backing should be 37.85 cents per share. Now that the share price has reached KE's prediction. Would anyone like to advise where will the share price go from here?
Does anyone know what happened to teledata which is a subsidiary of Intraco?
Analysis from KE:
In a Business Times article published yesterday, the company is exploring business opportunities in Oman, Kuwait and Abu Dhabi and following several major deals in the Middle East closely. It is close to clinching a government contract in Oman. The company is also in talks with a few Kuwaiti partners in the oil & gas sectors that may open up opportunities in Iraq when rebuilding commences.
According to the latest annual report, the year 2005 is seen as a turning point for the group. Among others, the group''s Project business unit is aggressively gearing up to take opportunities from the Singapore Integrated resorts, Beijing Olympics and the construction industry of Dhubai and Abu Dhabi.
51%-owned subsidiary Intraco Tech's recent proposed acquisition (4 Aug) of Time Technology with the rationale of seeking a listing in SGX could also trigger investors'' interest in the stock.
The company returned to profitability in FY04 and powered higher in FY05 (606% jump in net profit to SGD7.1mil, EPS 5.84cts, NAV $0.70). 1H06 continued to show improvement with 173% YoY rise in net profit to SGD4.2mil (EPS 3.38cts, NAV $0.73). It has a high net cash level of 26cts.
The stock has been consolidating around levels since February this year. A convergence of the 15-day, 60-day and 200-day moving averages suggests that the consolidation is in preparation for an uptrend move. Near-term support is at $0.395. The stock appears to be riding along an uptrend channel shown. A break above February's high of $0.445 should send the stock towards the return line t''-t'' at $0.51-0.52.
The stock is modestly illiquid. Recommend Intraco as a mid-term investment. Accumulate the stock at $0.40 or slightly above.