MMI   

Direction of this stock

SINGAPORE (XFN-ASIA) - MMI Holdings Ltd said it is still in talks with potential investors on a possible transaction involving its shares, which could lead to an offer for the company.

"No agreement has been reached on the possible transaction as yet, and there is no certainty as to whether the transaction will proceed," the company said in a statement.

It said that it will make an announcement when there is any material development.

 

Still on uptrend...  but weakening. See what happens this week.

 

 

credit suisse gives it a 12month target of 1.56

 

Still on uptrend ... according to TA charts.

 

well this counter really moved quite a bit recently. Hope it can maintain its performance

 

This not moving any idea why ??????

 

the breakout has finally come...

not vested but monitoring....

too many good stocks lying around to pick up but not enough bullets to spend... *sign***

 

DBSV says it has raised its target price to $1.38 from $1.09  in view of the company's stronger earnings outlook. It has also raised its earnings forecast by 11% to US$55.2 mln for the year to June 2007, as it expects improvement in MMI's sales.



"MMI is bullish that the strong momentum will continue for the next quarter, as well as for the rest of the fiscal year," DBSV said in a note. It noted that customer indications point to continued strong demand for HDD components even in the traditionally weaker second half to June 2007, while the company's new aerospace and scientific instruments businesses could mitigate slower equipment orders from Seagate.

 

It touched a 52-week high on the back of the expansion plan of key client Seagate and an upbeat outlook for the industry, dealers said.



Seagate announced Friday that it will invest about $1.3b over four years in its third plant for manufacturing recording media here.



"I believe the share price movement is related to that news," UOB Kay Hian analyst Jonathan Koh said. "They are one of the key suppliers for Seagate and they should be benefiting from more orders from Seagate," he said.



Seagate Technology has an upbeat outlook for the HDD industry, saying it will be worth US$45b by 2009 with growth led by the consumer segment amid robust demand for products such as gaming and handheld devices.

 

Original posting by Nostradamus (HDD Sector):



CIMB-GK says MMI, Seksun and Unisteel are its top picks among the suppliers of components for hard-disk drives (HDDs) that are listed here.





The brokerage said the HDD industry was on track to achieve double-digit quarter-on-quarter growth in the third quarter and that it expected these companies to report results that would be catalysts for the price of their stocks.





"MMI and Seksun are two prime beneficiaries of expected volume increases from Seagate after the Seagate-Maxtor merger," CIMB-GK said in a note. "Unisteel will gain from the overall industry growth," it said.





The brokerage has raised its target price for MMI to $1.36, having increased its estimates of earnings for the company for the financial years ending June 2007 and June 2009 by 3-4%. CIMB-GK has raised its target price for Seksun to $0.60.





"Among the HDD component suppliers, we sense that Seksun experienced the strongest quarter-on-quarter expansion, gaining from its major customer's volume growth and possibly market-share gains," the brokerage said.

 

There're talks of a strategic buyer building a position in the company.

 

The resistance for this 3rd wave up is at $1.03. Then it may down to support level at 84c on the 4th wave down. Finally it will move up on the 5th wave to $1.20.

 

Thanks jessie.



Credit Suisse said MMI is its top pick among suppliers of HDD components listed in Singapore as it believes the company will benefit from the seasonal jump in demand for HDDs in the second half of the year and spillover of orders from Maxtor.



"Despite its recent run-up, MMI remains our top pick," Credit Suisse said in a note, adding valuations are attractive with PER at 6x forecast earnings against potential profit growth of 20%. MMI also offers a decent dividend yield of 5%, it added.



Apart from strong orders, MMI should also see improvement in profit margins on the back of falling aluminum prices, said Credit Suisse which rates MMI an "outperform" with a target price of $1.18.

 

wow, red1721 and nostradamus, you all are really very good man... spot on !  Congrats !

 

I've already taken mine yesterday... sold them at 0.93...

 

$0.94, that's very near my target of $0.935.



Now for some negatives:



The competitive landscape is getting more intense, especially Brilliant claiming that they are 15-20% cheaper than current suppliers and as a result could potentially be involved in 10-11 of Seagate's new programs (Brilliant estimate about 30% allocation on average for each program). And Brilliant has targeted to spend $30m by Dec 07 to up their capacity in preparation for this. While it's not clear if Brilliant will eventually deliver the results, L&T believes the entry of such a low cost and hungry supplier would most definitely disrupt the supply chain.



Beyonics (40% market share) and Eng Tek (10%) are also not standing still, also targeting to increase their market share with Seagate. Min Aik, the associate company of Jurong Tech is also targeting the VCM Assembly business of MMI, after Seagate's acquisition of their key customer Maxtor (Min Aik is able to do VCM plates as well as assembly services, rendering them vertically integrated).



JCY in Malaysia, whose IPO plan has been put on hold due to their sole reliance on Western Digital, is also targeting desperately to be qualified by Seagate. While not yet successful, Seagate may use them to pressure exiting suppliers.



Norelco has lost 70-70% market share (capital equipment) to MMI and another new setup (ex-Norelco employees) in the last 2 years. While Norelco have said that they want to focus their attention on the nore profitable semicon sector, they are also not willing to give up the HDD segment anymore and intend to either maintain or even increase their market share going forward.



Over the past few years when huge capacity comes on stream (plastics, metal and semicon industries), severe pricing pressures would ultimately surface.



And Seagate themselves are also subjected to severe pricing pressures from Hitachi, Western Digital and Samsung. This suggests that while volumes may increase due to incremental volumes from Maxtor, Seagate would likely squeeze suppliers to meet their own margin budgets. With 70% business coming from Seagate (components as well as capital equipment), L&T believes MMI would likely be one of the key suppliers (amongst others) that will be watched closely. (MMI's GP margin is 17% vs Beyonics' 5% and net margin is 10% vs 3%).



At 7.7xPE ($0.94), MMI is valued above Beyonics its closest peer as well as other key HDD component suppliers such as Seksun (7x). Seagate and Western Digital are trading at about 10x PE. Hence, time to take profit.

 

Hi  Red1725,



Wow,  'tua huat'  oredi!  I should have the guts to go in ... but hearing  caution from everywhere, that's why  I hesitate for a moment...  Anywhere the market is always there for us to make money, money..

Good luck!

 

CEO Teh Bong Lim was bullish about his company's prospects when interviewed by XFN-Asia recently.



"It may not be as spectacular as last year, but we are targeting earnings growth," Teh said. "We're confident of the momentum that we have built up and I think we will continue to see growth in all sectors," Teh said.



Teh said that to meet demand from important customers such as Seagate-Maxtor, Western Digital and Hitachi, MMI would boost HDD production capacity by 15% in this financial year.



It is also growing its non-HDD-related businesses by targetting new areas such as aerospace and medical instrumentation, he said.

 

wow...10k+ in volume already after lunch...something's cooking or wad?