Adampak

[psslo]

Pardon me for making some forumers unhappy because of using the words 'boys' and 'men' to describe certain different behaviors of investors. I belonged to the 'boys' as well, and only become more like 'men' over time because of age and experience.

Something I have learned over the years: If an investor has the luck to encounter a very high-quality business or stock, he should not sell it too easily; instead, he should take a longer term view and accumulate more when the price is right. By holding on to a high-quality business or stock, an investor will benefit from all the cash pay-outs and the appreciation of its value over time, as well as any positive surprises from Mr Market that may just come usually without any prior indications.

From my experience, holding on to a fundamentally sound stock irregardless of market condition and industry cycles, especially when it comes to small caps, is somewhat irresponsible & can be grievous to your bottom line. There is a time for planting and a time for harvesting. That is what I learnt the hard way from my years in the market.

Adampak has been quite resilient during the recent market turmoil, however I think the downturn still has some time to run, and the HDD industry has already been negatively affected. As the downside potential is still there, I can wait for sunnier days before I invest my hard earned cash into it again. Patience is key.

[yeokiwi]

From my experience, holding on to a fundamentally sound stock irregardless of market condition and industry cycles, especially when it comes to small caps, is somewhat irresponsible & can be grievous to your bottom line. There is a time for planting and a time for harvesting. That is what I learnt the hard way from my years in the market.

I also learnt the hard way when privatisation offers came along. I am not implying that Adampak will be privatised but I am referring to value stocks that are privatised and the boat is missed simply because of the frequent buy and sell activities.
When I looked back at my portfolio gains, privatisation offers actually form a rather large proportion since the offer is normally a double or triple of the current PE ratio.

I think different people different strokes lah. Use the stroke that you are most comfortable with
Anyway, you eat your own cookings.

[orang]

Actually Orang ........it looks like it is probably better to be a member of the fairer gender when it comes to selecting stocks ........... have a look at the following CNBC article ............. he he!

++++++++++++++++++++++++++++++++++++++++
Are Women Better Stock Pickers?
Published: Monday, 26 Sep 2011 3:38 AM ET
CNBC.com

In a male-dominated industry, female stock pickers are a rare breed. But when it comes to buying equities and surviving on little sleep, all while managing a family as well as a portfolio, women often come out ahead of their male peers.

Ana Armstrong, a mother of three and chief executive of Armstrong Investment Managers, believes companies should provide more flexibility to encourage working mothers in the finance industry. “Women often re-evaluate their decisions, which is good for a stock picker. They are also more risk-averse than men and are superior in managing portfolio volatility. Women are also equipped with better intuition and are trained to survive on little sleep, multitask and organize their time, as they cannot afford to waste any,” Armstrong told CNBC.com. “This helps with work-life balances, and companies should provide more flexibility to encourage working” mothers, she added.

© 2011 CNBC.com

Nice touch....err soft touch.
Okay you can call me Kumar (for now) as I am having this intuition of a fairer gender in this Boom Boom Stock ya?

[dydx]

Just a quick look at the relative share price charts of Adampak vs. STI since 1Jan10 makes me happy.....
http://finance.yahoo.com/q/bc?t=2y&s=5EZ...l&c=%5Esti

Adampak's share price has actually out-performed the blue-chips as a group making up the STI - by some 20% over a 2-year period to-date!

Of course, if we add to it Adampak's great $0.03/share yearly dividends - which still gives an above market-average 12% annual yield based on the last done share price of $0.25 - Adampak's relative superior return vs. STI is even higher.

[dydx]

I suppose Adampak shareholders should take note of this morning's announcement concerning Adampak's factory operation at Ayutthaya, Thailand, which is suffering from flooding....
http://info.sgx.com/webcoranncatth.nsf/V...7003EC739/$file/SGXNet_annc_131011.pdf?openelement

After reading the announcement, it gives me a sense that Adampak's management has an effective business continuity plan in place, and all the key risk areas have been protected by insurance coverage.

[mrEngineer]

Good news for proponents of HDD industry.

Table salt used to boost digital storage: scientists
Friday 14 October 2011, 14:02 SGT

Scientists in Singapore said Friday they have discovered a process that can expand the data storage capacity of computer hard disks six-fold using a common kitchen ingredient -- table salt.

The discovery was made by Singapore's national research institution the Agency for Science Technology and Research, in collaboration with the National University of Singapore and the Data Storage Institute.

The agencies have "developed a process that can increase the data recording density of hard disks to 3.3 Terabits per square inch, six times the recording density of current models", they said in a statement, announcing the results of their research for the first time.

"This means that a hard disk drive that holds 1 Terabyte (TB) of data today could, in the future, hold 6 TB of information in the same size using this new technology."

Scientists were able to boost data storage capacity by packing more bits -- miniature structures which hold information -- in neater patterns compared to the random configurations used in current hard disk drives.

"Its like packing your clothes in your suitcase when you travel. The neater you pack them the more you can carry," the statement said.

The method -- called bit patterning -- had previously not been feasible as scientists were unable to see the outlines of the bits clearly after they had been printed onto a film in a process much like developing photographs.

But adding table salt into the solution used for bit imaging allowed the outlines to stand out in sharp relief.

"It can give you a very high contrast. We are now able to see fine lines that would normally be blurred out," Joel Yang, the Singapore scientist who discovered the salty recipe, told AFP.

"Otherwise you can try your best to pattern these bits very closely but they will all end up being gigantic blurred out blobs," said Yang of the national research agency's Institute of Materials Research and Engineering.

Yang predicted that the salt-flavoured bit-patterning process will be adopted by the industry by 2016 "when the current techniques run out of fuel and (hard drive manufacturers) need to find alternate methods" of increasing data storage space.

[kazukirai]

Good to know that Adampak's business can be easily applied in other sectors.
Bad news is that it sounds like Adampak's customers aren't SSDs which is one of the main points of debate that we've had here.
(vested)

From OSK-DMG latest Research Notes:

Hard Disk Drive: Challenging times ahead (Underweight)
Edison Chen (6232 3892, [email protected])
Terence Wong, CFA (6232 3896, [email protected])

The HDD subcontractors have been hit in recent months by a confluence of negative factors,
including slowing consumer demand, foreign exchange swings and most recently, the massive
floods up in Thailand, where many of them have manufacturing facilities. We believe the share
price will continue to be depressed, and see little reason to bargain hunt. We are
UNDERWEIGHT the HDD sector, following the downgrades of both Armstrong and Broadway to
SELL. Adampak is our sole BUY in the HDD sector.

Muted PC and HDD outlook. Growth for both PC and hard disk drive (HDD) unit shipments
are expected to slow to 3.8% and 2.9% respectively for 2011 amid deteriorating consumer
sentiment. Though some growth will be eked out this year on the back of mobile HDDs, longterm
outlook remains challenging due to tablet and solid-state drive (SSD) cannibalisation. We
prefer Adampak as its labelling and die-cutting business can be easily modified to cater for
different markets.

Forex swings to weigh on 3Q results. The sharp appreciation of USD against the SGD
(+8.5%) since late Sep is expected to significantly impact on the 3Q results of Armstrong and
Broadway as the mark-to-market losses of balance sheet items and derivative contracts
outweigh the operational gains. Since most of Adampak’s revenue and costs are denominated
in USD, it will not feel much impact.

Thai floods to add to the woes. Thailand’s worst flood in half a century has caused major
supply-chain disruptions and production suspensions to the HDD industry. Singapore
component suppliers are not spared as the likes of Armstrong, Adampak, Broadway and
Innovalues all reported that their plants in Ayutthaya will be shut down indefinitely. We are
expecting Armstrong to be the hardest hit.

UNDERWEIGHT on the sector but with a BUY rating for Adampak. We retain our cautious
view on Singapore HDD players with an exception for Adampak. We favour the stock due to its
1) conservative management style, 2) minimal forex exposure and 3) product interchangeable
for horizontal market expansion.

[pianist]

some related flood update from chosen:
The Board of Directors of Chosen Holdings Limited would like to update on the flood situation
affecting our plant in Ayutthaya, Thailand (“Thailand Plant”).
The first level of our Thailand Plant, containing machines, stock and toolings, is now submerged
in the water. We are currently not able to access the plant to determine the damages and its
effect on Chosen Holdings Limited’s performance. However, the Thailand Plant only accounts
for approximately 15% of the Group’s turnover and the plant is insured against flood.

[dydx]

Based on the picture of Chosen (Thailand)'s plant at Ayutthaya.....
http://chosen.com.sg/files/cth.htm
, the facility is located on flat ground.

Based on the picture of Adampak (Thailand)'s plant at Ayutthaya.....
http://www.adampak.com.sg/ContactUs/Index.htm
, the facility appears to be located on higher ground (sloping upwards from the main entrance). Let's hope that this will make the difference against the strong floods!

[pianist]

chosen's one is at No. 107 Moo 1
adampak's one is at No. 136 Moo 1
i think they both suffer the same fate