Bluestar Secutech Share Discussion Threads

[zangdook] 15/4/2010 13:20

I thought options were supposed to be above the current price to give them an incentive to increase shareholder value.

[crawford] 15/4/2010 12:16

Share options RNS, I hate those.

[crawford] 14/4/2010 11:35

Looks like a breakout from the triangle formation which started as far back as April 09.

My charting is very basic, but if that's true, then there could be as much as a 20p rise from here.

Any good chartists out there?

[crawford] 09/4/2010 16:24

Masurenguy,
point taken on the debtor days, especially with the new year and the banks tendency to pay in December.

Still, they have a dedicated team for chasing debts so it will be a nice bonus if they do improve.

[masurenguy] 09/4/2010 15:16

Well they reduced debtor days by 35% to 263 at the end of December. Given the slow paying culture in China, particularly where the major banks are concerned, I can't see a lot of scope to significantly improve on this much further and it could actually imcrease a little in Q4 following the Chinese new year. However the debt is blue chip and they have plenty of cash so it really should not be viewed as being a problem !

I would anticipate an increased dividend of at least 50% if they get close to their projected year end profit projections.

[crawford] 09/4/2010 14:33

Masurenguy,

yes, any positive update (including debt collections) will prove the share price is completely mispriced.

Plus an increase in the dividend would be welcome.

[masurenguy] 09/4/2010 14:24

Their year end projection at the interims indicated anticipated sales of RMB190m which should produce an EBITDA of circa RMB60m or 7p a share. If this is achieved then the historic PER will be circa 3.3 and the PEG circa 0.5. !

If they achieve these numbers then the share price should quickly respond. Even if they fall a bit short there is still a good bit of leeway at the current valuation with a current market cap of £16.5m and an EV of circa £8m after stripping out net cash at the end of December. They appear to be track to make at least £5m profit after tax in the year just ended which, if achieved, would make the current valuation seem completely absurd !

[bill182] 09/4/2010 12:42

I think there is a trading update next week, but if not, it will be before the end of April. There was a delayed purchase yesterday of circa 50,000 shares, and given the positive tones already given by the company, IMHO this share will only be going one way, and that is up.

[crawford] 08/4/2010 16:20

Thats one big converging triangle, which way will it pop?

[barbra2] 25/3/2010 12:13

in demand again - able to sell 20,000 shares at one go.

[bill182] 22/3/2010 15:54

62k purchased on PLUS and the share price jumps 7% - I think the MM's could be short of stock, as opposed to my previous comment!

[bill182] 22/3/2010 12:17

I think the MM's must have heard some very positive news

[barbra2] 22/3/2010 12:15

stronger demand than of late today - even though no trades are showing, got an online quote to sell 20,000 shares at 23.725p

[masurenguy] 18/3/2010 10:15

Lets hope so - the gap between a realistic valuation and the market price has been much to wide for sometime now !

[bill182] 18/3/2010 10:08

Are people finally waking up to the value of this company. With cash of circa £8m, a progressive dividend policy and a discount to NA's of circa 34%, this has to be one of the better opportunities at the moment.

[bill182] 16/3/2010 13:38

looks like the MM's have called the bottom and are moving the price back up. I am very optimistic for some positive news at the trading update which is due in April, and believe the share price will find a new level, hopefully a lot higher than it is at the moment.

[bill182] 11/3/2010 08:49

The only thing I can deduce from the MM's continued pull-back on the SP, on what are very small volumes, is that they are trying to build a stake before the trading update next month.
The company is on record as stating what the sales and cash position is likely to be, and I fully expect news of further collaborations and contract wins. I continue to add to my holding as and when funds are available.

[crawford] 11/3/2010 08:48

Agree guys,
BSST compares very favourably, quite a bargain at this price IMHO.

[masurenguy] 11/3/2010 08:36

I agree. IND, with annual sales of circa £30m and a likely pretax of around £3.4m, is on a current year PE of circa 16, with cash of £4m and an EV of £38m. In contrast Bluestar have projected annual sales of £19m and a likely pretax of around £5m, is on a current year PE of circa 3, with cash of nearly £9m and an EV of £5m.

Totally inscrutable !

[bill182] 11/3/2010 08:35

Arthurly, I totally agree. As can be seen I have compared some of the key numbers of the two companies.

[bill182] 11/3/2010 08:33

IND have today announced their interim results to the end of Jan 2010. The turnover in the period was £12m, producing a profit of £1.2m. NA's are £16m, with cash of £3.9m.

From information provided by BSST and using previous profit margins, I estimate BSST will have a turnover of £12m in the 6 months to March 2010, produce a net profit of £1.5m, NA's will be £24m and cash of £9m.

AS can be seen, the results are very similar, other than BSST are holding a lot more cash. However, if you compare the mkt caps of both companies, they differ wildly.

IND MKT CAP £43M. BSST MKT CAP £14M

Would anyone like to discuss?

[arthurly] 11/3/2010 08:17

Diffucult to see why this is valued at £14m and IND at £43m after todays IND results. Bonkers really.

[masurenguy] 10/3/2010 15:01

Hard to understand why after the last trading update just 7 weeks ago. At this price the current market cap is just above £14m yet they had almost £9m in cash as at December 31st. That gives them an EV of around £5m and they appear to be track to make at least £5m profit after tax in the current year ending March 31st. Current valuation seems to be absurd !

"Trading for the three months to 31 December 2009 has been particually strong, with over RMB 50 million of revenue from contracts previously announced being recognised in the period. The Company's trade receivables position has also improved considerably with debtor days at 31 December 2009 reducing to 263 day (30 september 2009: 405). This is as a result of the Company's improved debtor control procedures as well as the completion, in December, of the annual payment process which a number of larger banks in China operate. As a result, the Company's cash at bank position at 31 December 2009 remained strong, with a balance of approximately RMB 89 million. Current trading since 31 December 2009 has been at a level similar to that of the same period in 2009 and, as a result, the Board views the future with confidence.

Commenting on the Trading Update, Mr. Xiao Gang, CEO of BlueStar said: "We have experienced strong revenue growth in the last quarter and our compelling brand products and strong innovation, supported by excellent execution at the point of sale, have been instrumental in our success to date. As a company, with market leadership, excellent R&D, efficient operations and a strong balance sheet, BlueStar is well placed to ride out the global economic crisis and grow stronger as the global economy recovers."

[crawford] 10/3/2010 14:36

Down again today :-(

[bill182] 02/3/2010 13:15

zangdook, there are many companies in this sector and I would advise you to do your own research. However, if you compare BSST to say Indigo Vision, who are in the same market and have similar turnover the disparity is large. IND have NA's of £15m, but a market cap of £43m.