I have just posted up a scorecard of Vtec. As you can see, this is a company that scores quite highly. The only thing it doesn’t really do well on is its growth in receivables, which is not really commensurate with its growth in turnover. But that is not a big deal given that it is not exactly strapped for cash. Based on its unaudited accounts, it has a PE of around 9 and its trading at around 2.3 times its book value. However it is also investing heavily so I expect the real number to be lower. So this looks like a cheap company. What are its prospects? This is a manufacturing company in the IT area, supplying parts for a devices ranging from hard drives to MP3 players, which I consider a solid business.
I have also posted up a weekly chart of its performance. You can see that it has been travelling in an up channel since march 2006. In March this year it broke out of that channel, but formed a double top and whipped back inside. Since then it has drifted down on declining volume, which is typical of what I call a blow up where buying interest causes a price to blow upwards and then interest is lost, causing the price to drfit back down again. This is very different to prices which go down on volume, which indicates that people are dumping the shares. I don’t see any evidence of that yet, although it is near a long term support which is its high of 2006 (0.5 cents).
I’m going in!
care to make a comment on NATBIO? newly listed but revenue growth is exponential.. might be the next superstar…
I’ve posted up my comments in the forum. Thanks.