Baker Tech's Stratagems

The Quest
A conqueror celebrates his victory but a veteran conqueror contemplates his next. Rather than resting on its past successes, Baker Tech is focusing on greater achievements ahead. Setting its sights on promising new opportunities, Baker Tech is capitalising on its established presence and consolidating forces to capture new arenas of growth.

The Strategists
Few battles were ever won without a plan. Baker Tech’s success is a result of the ingenuity of its people, who have conceived and executed shrewd strategies in its conquests. With keen foresight and instinct gained from experience, the Board, management and staff continue to push new boundaries together.

The Right Moves
With its sight on a common goal and aligning all its initiatives, Baker Tech effects massive but synchronised strides forward as an organisation. This focus has kept Baker Tech nimble and agile in making decisive moves when taking on new opportunities.

The Conquest
The greatest conqueror reflects on his past triumphs and reinvents his future missions. The cornerstone of Baker Tech’s enduring success lies in the company’s careful scrutiny of its performance each year, giving due recognition for a job well done but never becoming complacent.

The Discipline
To stay victorious in the challenging business world, a strict code of conduct is paramount. Baker Tech adheres to best corporate governance practices, ensuring that all parties’ interests are protected and potential conflicts are avoided.



source : Baker Tech Annual Report 2011

Baker Tech higher revenue not flowing through

Disappointing full year results from Baker Technology today.

Results released for nine months in Nov 2011 was already quite bad but gross profit is still better than previous year, by 15%.  But just one terrible final quarter and its full year gross profit is lowered by 6% versus year 2010.  The bad quarter 4 gross profit margin was due the usual excuse of different product mix and competitive pricing.

Its full year revenue and profitability overview as below.

- revenue increased from S$48.4 million in FY2010 to S$81.1 million in FY2011.
 
- net order book stands at US$80 million, a significant improvement from a net order book of US$33 million a year ago. These orders are expected to be completed within the next 12 to 18 months.

- net profit reduced from S$27.4 million for FY2010 to S$7.6 million for FY2011. The reduction was mainly due to:-

(1) the absence of a share of results from investment in PPLS, from which the Group recorded S$15.8 million in FY2010, as a result of its disposal of PPL Holdings Pte Ltd in October 2010;

(2) a lower gross profit margin for projects in FY2011 as a result of different product mix and competitive pricing;

(3) higher share of losses from its 49% stake in York due to foreign exchange losses resulting from the weakening of the Indian Rupee against the US$

(4) higher administrative expenses of S$3.4 million due mainly to higher legal fees of S$2.8 million incurred in FY2011 in relation to the legal suit with Sembcorp Marine Ltd.

(5) the reduction in net profit was partially offset by a lower foreign exchange loss in the current year. For the year ended 31 December 2011, foreign exchange losses of S$0.9 million versus a loss of S$2.5 million in FY2010, primarily due to the weakening of the US$ against the S$.

Dividend - year 2011 $1.0 cents vs year 2010 $3.0 cents.

Cash - Closing Status 27 Jan

This week's stocks sales under cash portfolio on Keong Hong, Goodland and Baker Tech gave me a satisfying advance dividend (or profit) of $785.  
 

stock	expected dividend	nett gain
Keong Hong (5TT)	490	456
Goodland (5PC)	80	185
BakerTech (568)	150	145
total	720	785

Looking at my realized positions under cash portfolio in year 2012, l have been selling into strength to get paid in advance on the dividend; realized positions in full year 2011 $1,187; in 2012 Jan  $2,378.

The stock price in some of the counters can still go higher before they actually go ex-dividend but l am very clear with my selling price target.  So, l would rather hand over the baton to the next runner in the race once l have achieved the anticipated dividend amount.  And with the proceeds on sales of these stocks l am ready for the next run.

previous posting  :- Cash - Closing Status 20 Jan

Investment activities - week ending 27 Jan

For the last two weeks l have been trying to buy more stocks which are going ex-dividend soon but their prices are not attractive enough.

For this week, l have sold Baker Tech 5 lots and Keong Hong 35 lots.

I saw good entry price on Goodland and bought 8 lots for its dividend.  But l have decided to sell it all off when its price gone up to a level beyond my dividend yield expectation. 


There have been some kind of panic buying everywhere as this is just normal speculators and investors behavior of not wanting to be left out in getting a piece of the pie.  I would rather not follow as l reckon this euphoric thing over high stock price day after day is just too risky.