Entered Swing Media Technology Group Ltd (SGX:O2F)

How about a manufacturer of CD and DVD discs? Apparently demand for discs has not decreased as much as one (I) would expect, Swing seems to be doing pretty well.

I am a bit concerned about the historical share increases and swelling working capital, but I find it offset by stable margin and pretty good balance sheet.

Entered at P/NCAV 0.35.

2 thoughts on “Entered Swing Media Technology Group Ltd (SGX:O2F)”

  1. you have courage!
    indeed, if this was a good business, why the endless capital raises and why the need for so much capex?
    could you share your email?
    regards
    rijk

    1. I pick stocks on a quantitative basis and Swing Media made the cut at the time. The only redeeming factor for Swing is that the company is cheap, there is no way around that. Optical storage is in decline and they allocate capital poorly. However, if the share is trading at far below net current assets and P/E 2 and they make something right, there must be a big upside. I sent a more elaborate reply to your email.

      Regards,
      BH

Leave a Reply

Your email address will not be published. Required fields are marked *