Wednesday, April 18, 2007

Bring Frontline to Life

"Wake me up inside, wake me up inside, call my name and save me from the dark", that's how the chorus of Evanescence hit single "Bring Me to Life" goes. The analogy to this song cannot be more apt for Frontline Technologies Corporation Ltd. (FT SP) (SIN:F02) ("Frontline"). This company was abruptly resurrected when it hogged the top volume charts of SGX today.

Frontline is a pan-Asian IT solutions company with operations in several Asian countries. It was featured on MOS in October 2006 when it traded at S$0.135. Then, MOS made a mockery of the closing price, suggesting that the market had been "distracted by the boom of the North Korean nuclear test". MOS was then attracted to Frontline as it received substantial cash proceeds from the listing of its Indian subsidiary, thereby swelling its NTA above its market price.

Six months down the road, the market are now excited by its undemanding valuations (relative to its peers), the possibility of a dividend payout which would exhaust its unused section 44 credits and its growth prospects.

Frontline closed at S$0.17 today. At this juncture, the price represents a handsome 26% gain for a half year holding period.



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