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spotforward · Joined: 23 Sep 2009 Posts: 1

Xpress announced that its profit is up 27% to $13mil and NTA is at 9.4 cents while stock is trading at 8.5 cents. They have sold 10.1% of their 30% in their china jiaxinda subsidiary at profit of 5.1mil. Jiaxinda is undergoing the process to get listed. Their remaining 19.9% will likely bring more than 10mil in profit if Jiaxinda gets listed.

"The early redemption of the convertible bonds allowed xpress to lower its gearing considerably, reducing total interest-bearing loans and borrowings by almost 37% as at the end of FY2009." The company saved $0.44 mil on interest expense.

Their printing business is declining but gross profit margin is improving. The management might be doing a decent job.

Stock previously trading at 12.1x P/E. Based on new earning per share of $0.0093. The stock should start trade at 11.5 cents tomorrow if the P/E is unchanged. However, these things never happen in singapore for the lesser traded shares. Some times even trade below book (9.4 cents) to sell like on sales.

Value buy at 8.5-9.5 cents. Cut at 8 cents. Sell at 10.5 cents. Potential 11.5 cent.

Xpress up 11% already today. going strong at 9 cents. NTA at 9.4 cents, definitely worth more than 9.5 cents. 19.9% of JXD not yet recognized $10mil profit. JXD IPO would bring this number much higher.

Based on current issued shares of 1,544,519,374 , $10mil impact is 0.64 cents and the 0.15 cents. This is equate the company share net price to be 9.5 cents already.

People are queuing at 0.085 which I can understand. but why people selling at 9 cents.

rtaylor · Joined: 07 Sep 2010 Posts: 6

Good one!!