Frontline   

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Poor volumes... TA should avoid this.

 

I agreed, this is good stock to accumulate over the longer team and has great potential of rising. 

 

This share should have potential of rising, my advise is to take look at it !

 

Its unit Accel Frontline Ltd has raised a total of $13.57m from its IPO on the National Stock Exchange of India and the Bombay Stock Exchange. The IPO, comprising 5.64 mln shares priced at $2.62 each, was oversubscribed by 2.44x, Frontline said in a statement.



The shares included 5.18 mln new shares and 460,283 vendor shares, representing 25.04% of Accel Frontline's enlarged capital.



Proceeds from the IPO will be used to fund Accel Frontline's global and regional expansion plans and for the acquisition and investment of strategic businesses, as well as to boost its manpower capabilities and business process outsourcing (BPO) infrastructure, Frontline said.



Expected to start trading on 30 Oct.

 

Low volume counter... TA charts show that it'll be either stagnant or downtrend.

 

Accel Frontline's IPO turned out to be resounding success.

 

Nostradamus, thanks for sharing the info. By the way, since the IPO of its subsidiary was released, is it experiencing "accumulation phase" or purely "profit taking" due to its low fluctuation.

Anyway, being optismistic, I am hope of accumulation for future growth and has accumulate some..Cheers.

 

Westcomb has a price target of $0.18, equivalent to 16x Mar FY07 PER.

 

Low volume counter... Not that interesting for TA folks.

 

Basing on the higher-end of the book-building price (Rupee 90 or $3.10), Frontline's NTA will increase from 12.9 cents/share to 14.6 cents/share.



IT spending is fast gaining traction in Asia. Outsourcing revenue in this region is expected to rise to US$14b in 2009 at a CAGR of 20%. The outsourcing segment accounts for 34% of the Group's revenue in FY06 and we are confident this segment will continue to remain the key cylinder of growth. The Group posted spectacular growth in overseas sales, particularly from its Accel-Frontline (India) operations. Revenue from India expanded 45% in FY06 driven by heightened demand for IT outsourcing services.



UOBKH believe the Group's India and China operations will continue to grow in strength. Its strong presence in these two markets places it in an ideal position to tap on these buoyant markets. The Group has a 30% minimum dividend payout policy from FY07 to FY09. At the current price, UOBKH forecast FY07 dividend yield of 5.5%. UOBKH has a target price of $0.16, pegged at FY07 PE of 14x.

 

So what's the upside potential on this stock?

Is it a "buy" as the share price seldom move much eventhough this Co has made all the right strategic move.

 

It said its unit Accel Frontline has launched an IPO of 5.64m shares at a price range of 75-90 rupees per share, equivalent to $2.60-3.10  apiece, in the Indian stock exchanges. The IPO comprises 5.18m new shares and 460,283 vendor shares, representing 25.04% of Accel Frontline's enlarged capital.



The company expects to raise about $13.4 -$16.1m in proceeds from the sale of new shares which Frontline executive chairman Steve Ting said will be used to expand the group's operations in the US and Middle East and to increase its workforce by 25% to 5,000 over the next three years.



The IPO will close on Oct 5.



Frontline said the shares will be listed on the National Stock Exchange of India and the Bombay Stock Exchange but did not say when.

 

It expects its order book for the fiscal year ending March 2007 to rise 20% to around $80m, on robust outsourcing demand in India and China.



"In terms of IT spending, both India and China are showing substantial growth, in the double-digit range, and India, in particular, has a lot of IT infrastructure that needs rebuilding," Frontline Executive Chairman Steve Ting told Reuters in an interview on Monday. "We ended our previous financial year with a $65m order book, and the trend is moving in that direction. We expect to end FY2007 with a 20%increase in our order book to around the $80m range."



Many firms are outsourcing part of their technology infrastructure needs and business processes to cut costs and boost competitiveness, analysts said.



Ting said the firm was in talks with other shareholders to increase its 48% stake in its China associate, MDCL-Frontline (China) Ltd., to the high 70% level. "We should be able to close the deal within the next six to 12 months," he said. For its March 2007 fiscal year, Ting forecast a 30% jump in net earnings to over $9m, on a 20% rise in sales to the $200m -level, based on organic growth.



"We did $170m in sales last year, and we expect 20% growth this year, which should bring us to the $200m range, but if we are able to raise our stake and consolidate China, which has a turnover of about US$100m, that would add another $160m to our top line this year." Ting also estimated a 30% surge in Frontline's earnings to over $9m for the current fiscal year. "But if we are able to add China and other investments, the number would be a lot more attractive than that."

 

do you think it will start to rise now at 0.12.

It seems it has a potential if its plans and profit but the shares seems weak comparing to its ipo price and now.

 

target price 0.185.