Gtronic ~ drop approx. 51% since April 2010

Gtronic (7022) http://www.globetronics.com.my/

Background:

• Globetronics Technology Berhad founded in 1991 (approx. 20 yrs in business).
• The Group's principal activities are the manufacture and assembly of integrated circuits, optoelectronic products and printed circuit boards.
• Other activities include manufacture and fabrication of ESD protective materials and ceramic metallisation, manufacture of small outline components and technical plating services for the semiconductor industry, provision of hardware and software system solutions and consultations, provision of burn-in services, trading of chemical products and import and export of components and direct materials of semiconductor.
• Manufacturing and trading segments operate principally in Malaysia, Philippines and Peoples' Republic of China.
• The services segment is operated solely in Malaysia.
• Listed on the KLSE since 3 November 1997.

Current Share Price:  0.84




My View:
This share has drop around 51% from 1.73 (April 2010).

During the last so called recession in 2008, the share price drop to approx. 0.50. In less than two years, Gtronic went up to 1.73 (246% increased). That's a huge profit!! ^_*

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

• Value drop around 51%
• Net asset per share is 0.95 ~ about same as current share price. This has increased significantly from approx. 0.17 in 2006.
• Dividends pay out approx. 8% per annum ~ higher than banks FD a/c which is around 3.8% now
• One of the major shareholders is EPF with approx. 11.11%

Keep an eye on this share.

If you are not risk taker, you should consider put it in the bank for FD and get around 3.8% interest per annum.

For similar price, you might consider my previous blog for YTL Power:

YTL Power ~ A Low Risk & Sustainable Share?