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Is Globetronics Technology a Safe Bet for Investors Now?

rayden66
Publish date: Tue, 10 Sep 2024, 08:33 PM
rayden66
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Today, we see a significant downfall in share price for Globetronics Technology (KLSE: GTRONIC), primarily due to the knee-jerk reaction to the resignation of KPMG as their auditors.

While I understand the concerns coming from investors, I still think that the drop is too much, leading to a low in share price in over a decade.

GTRONIC, in reaction to the share price, had made a public release where they are shortlisting UHY Malaysia as their auditor, which is another firm in the Top 10 auditors list in Malaysia.

Fundamentally, we see slower sales coming from GTRONIC’s core business, but the company has been profitable thus far, with a cash pile of over RM144.7 million in hand, as compared to the current market capitalisation of RM364.7 million.

In other words, if you buy GTRONIC at its current price, around 40% of the company’s value is reflected as cash.
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A further investigation into the shareholders list of GTRONIC, we can see that both EPF and LTH are the major shareholder of the company.

I think their shareholdings speak volume for the fundamentals of the company, especially with EPF being the largest shareholder.

With all these factors aligned, we think GTRONIC at its current price, is indeed a low risk and safe bet for investors, given the recovery of semiconductor trend in 2025.
What do you think of GTRONIC at the moment?
GTRONIC (7022)
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1 person likes this. Showing 8 of 8 comments

star899

Just don't understand why the institutional fund EPF keep disposing the Gtronic share recently

1 month ago

DickyMe

EPF dumped a bulk of it's holding. Update your data.

1 month ago

DickyMe

Also,
Notice of ceasing to be substantial holder - LEMBAGA TABUNG HAJI on 10-Sep-2024.

1 month ago

DickyMe

Collect while it is beaten to pulp and keep.

1 month ago

gohkimhock

Revenue and profit is shrinking. I won't buy. Instead of growing, they are declining.. It's fair value should not be above 70 sen with these kind of results.

1 month ago

speakup

price now still way higher than its nta

1 month ago

hckwong

Rayden66, your comments on EPF being the largest shareholder is half truths. Yes they were the largest shareholders in March24 but they are not now

1 month ago

newbie9893

New director appointed, all link to SCIB, i guess GRONIC will the next Serbakd in the making

1 month ago

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