IRIS ~ drop approx. 62% ~ will you consider?

IRIS (0010) http://www.iris.com.my/index.cfm

Background:

• IRIS incorporated in 1994 (approx. 17 yrs in business).
• IRIS pioneered the world’s first electronic passport and national multi-application smart card with the implementation of the Malaysian Electronic Passport in March 1998 and MyKAD - the Malaysian Government Multi Purpose Card in April 2001.
• Listed on KLSE on 25th July 2002. 

Current Share Price:  0.145

My View:

This share has drop around 62% from 0.38 since 1Q 2007.

Why drop? This might be due to its business in Egypt and US? IRIS owned 87.5% of Iris Egypt LLC and owned 100% of Iris Corporation North America.

• The Company had on 21st November 2010 placed its 87.5% owned subsidiary company, namely IRIS Egypt under members‟ voluntary winding up.
• US is currently having huge problem with their debts which might affect the income for Iris Corporation North America

The reasons I consider this share for investment are as follows:

• Value drop significantly
• Net asset per share is 0.25 ~ higher than current share price. Stay steady between 0.19 to 0.25 since 2006. Please note that although share price drop significantly since 1Q 2007, yet net asset per share still stay the same.
• One of the major shareholder is Permodalan Nasional Bhd with approx. 8.40% (They bought this share recently ~ so might have internal news? new thing gonna launch soon?)
• Long term cash flow ~ chip within our E-passports and Mykad ~ our population will continue to grow, at 2010 our population approx. 27.5millions and it goes up approx. half a million every year. Besides now we have Airasia, more & more ppl will have passport and travel around the world. Other than continuously providing chips for our E-passports and Mykad ~ they will also provide software updates, card readers etc. So now you can see the future for this company?

Also check out the interesting video by BBC Tomorrow World ~ so once this system used in all airports, another big income for IRIS?

http://www.iris.com.my/index.cfm?sc=163&code=electronic_passport

Few things you might want to consider is that no dividends pay out by IRIS and the government might use other company to provide these services. If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum.

You can also check out another IT company, TIMECOM, in my preview blog:
http://awonginvestment.blogspot.com/2011/08/timecom-share-to-look-at.html