SKPRES, valuable penny stock

Company Profile
SKP Resources Bhd., an investment holding company, engages in the manufacture and sale of plastic parts and components for electronic and electrical products in Malaysia. It offers plastic parts and components for computer, video, audio, and related accessories.Client include HP,Dyson,Sharp,Pioneer...

Financial Result
For the past 4 FY, SKPRES EPS has been consistent with average of RM0.022 apart from RM0.005 on FY09.Which along with economic downturn and higher cost of goods sold. However, FY10 year to date result shows some recovery, with EPS stand at RM0.013. As it already recorded 6 months net income of RM6.8mil, twice as much as net profit of FY09.


Company Valuation
With net working capital of RM0.10 ps, it is very cheap(26/11/09 closing = RM0.16) That means we only pay RM0.06 ps for its fix assets. Short term borrowing has been reduce to RM213,000 as we can simply ignore.

My View
By only paying RM0.06 ps for this stock, it is a bargain. 3 years of EPS RM0.02 will pay back your investment. Electronic products demand shows some recovery as consumers start spending again.

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LTKM has a good quater

Company Profile
LTKM Berhad through its subsidiaries, is engaged in operation of a poultry farm for the production and sale of chicken eggs, chickens and organic fertilizers, and extraction and trading of sand.

Financial Result
LTKM registered a higher PBT of RM6.89m as compare to RM2.54m in preceding quarter.Revenue was marginally down, but net profit soar 188% q-o-q from RM1.99m to RM5.74m. This is due to lower costs of major raw material and government incentives.
y-o-y, we can see that current assets keep improving while total liabilities dropping.

Stock Valuation
Based on FY09 EPS of RM0.22, LTKM has a P/E of 5.5x.(26/11/09 closing RM1.22)Which is fairly attractive. FY10 outlook is good with a consensus EPS of RM0.33.TP RM1.80, based on 5.5x consensus EPS. With 8sen dividend discount(divided is fairly consistent for the past 5 years)

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