Year End Special Offer! Will ISDN share price do an AEM? Since January 2020, ISDN share price has rocketed more than 300% to reach the current $0.75. The meteoric rise of ISDN share price has led investors to compare the counter to fellow SGX peer, AEM. Apart from this, what is the possibility of Temasek Holdings taking a stake in ISDN?
In life, never say never. Temasek Holdings investments in AEM and CSE Global showed that the sovereign wealth fund is open in taking majority stakes in promising home-grown companies listed in SGX mainboard. Like AEM and CSE Global, ISDN is an engineering company that provides technological solutions to its customers. In this article, I will examine the possibility of Temasek Holdings taking a stake in ISDN and the potential impacts on ISDN share price.
The principal activities of ISDN are mainly on motion control, industrial computing, other specialised engineering solutions and construction of hydropower plants. The Group is listed on SGX Mainboard since 24 November 2005 and achieved a dual primary listing on the Hong Kong Stock Exchange on 12 January 2017.
In Singapore ISDN share price is largely under the radar of institutional investors. For the past one year, this counter did not feature in any of the monthly top ten institutional net buy or sell lists. Nonetheless, this is not a dead stock as average 3-month volume is 116 million. This suggests that the surging form of ISDN share price in recent months could be attributed to strong retail buying interests.
If we turn back the clock, we can actually see that ISDN share price rocketed from $0.11 in November 2012 to an incredibly high of $1.42 in June 2013. That was an amazing 12-fold increase within the span of just seven months! Back then, those who had invested in this stock must be laughing their way to the bank. Subsequently, the penny stock crash of 2013 brought ISDN share price back to Earth and the share price had been languishing at the $0.20 price level till July 2020. Will history repeat itself for ISDN share price?
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in ISDN before. Whether ISDN share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
ISDN share price in bizarre journey
One of the key reasons that piqued my interest in ISDN share price is because I am looking to invest in local SGX companies with niche in renewable and advanced technologies. ISDN seems to fit the bill. Furthermore, Novo Tellus, the private equity firm of Loke Wai San (Non-Executive Chairman of AEM), has a stake of 8.56%. Furthermore, ISDN share price is currently being traded at very attractive level.
If we project full-year net profit of $42 million (which is very doable based on latest financial result), this will translate to EPS of $0.093. Applying PE ratio of 20, the projected ISDN share price could be $1.90. Whilst the current value of ISDN share price is indeed very attractive, there are a few factors that made me think that this counter could be [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]Year End Special Offer!
Congratulations on your first step to becoming part of SG Wealth Builder community! For a one-off payment of $100, you can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.
The full benefits and privileges of SG Wealth Builder Membership:
- Access to the latest premium articles of SG Wealth Builder
- Email notifications of latest blog articles
- Request for coverage on stocks, insurance and other personal financial topics
- Comment in articles
Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.