Juken Tech   

A Profitable Plastic Stock

 

Under a proposed reverse takeover deal, Juken will be paying $95.1 million for an 80.1% stake in Malaysia's Cubic Electronics Sdn Bhd, which makes sound cards and MP3 players for Creative Technology.

Juken is buying the stake from Goh Seng Chong, who will be issued 543.3 million new Juken shares at $0.175 apiece. The consideration shares represent about 79.82% of Juken's enlarged share capital.

Juken is also proposing a placement of up to 22.89 million new shares representing 20% of the existing issued and paid-up shares of the company. The placement shares are priced at $0.1908 cents each and will raise gross proceeds of up to about $4.4 million, which Juken plans to use to fund the expansion of its business and as working capital.

 

This acquisition is earning accretive. Profit guarantee some 18m will be a BIG boost to Juken bottomline. Continue to buy. My target 35c once brokerage firms spice up this usually sleepy counter.

 

Unbelievable! Done 25c. Profit 35% since posting (18 Jun). Sayonara.

 

The profit warranty is important here & should be for at least another 2 yr. Provided CUBIC's yearly profit is RM41m (from FY08), JUKEN could recoup this investment ($95m) in about 5yrs though CUBIC's NTA is so miserable. See Press release.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_F657802BA1ECB2B24825730700541C90/$file/Press_Release.pdf?openelement

 

 

I would think this is a good move, now you have a plastic injector going into EMS with OEM and OMD capabilities .Cubic, formally a subsidary if Creative would provide the necessary network. What more, with placement at 0.1908cts. Cubic give profit warranty of RM41mil for FY ending 2008. I would think it is positive. Juken hardly trades over0.14cts. It should open at least 0.19cts

 

Any comments on JUKEN buying CUBIC for $95m ? This purchase price don't make any sense to me. No due diligence done, I reckon.

http://info.sgx.com/webcorannc.nsf/560dd4b031b97d27482571b20043d38c/f60d650320e45bbd48257307003dd506?OpenDocument

 

How come halt for 2 days without any news? Is it something bad.

 

Judging frm the pre-halt surge, I believe something very positive will be announced. This counter is super laggard with low trading volume due to low outstanding issues.

 

If things are good, it will trend higher to break multi year high

 

Trading halted at 10.15am today. Anyone got winds of what's happening.? Is it a reverse takeover or what ? Good luck to all holding JUKEN. The upside is more than 30% by the looks of things....

 

Super Laggard - could see upside potential  of at least 30% from today's close of 18.5c. High NTA 23.77c (FY31.12.06). Cheap valuation based on historical EPS, FY06 EPS = 1.45c. Propective EPS in 1H07 is likely to rise due to India JV.

 

Volume seems not so high...

 

This firm is in niche plastic industry producing sub micro plastic components. Has been profitable and a laggard.

You may want to take a look at this one.