Testing Newer Highs
MOS wishes to highlight SGX listed micro-cap Global Testing Corporation (GTC).
GTC provides testing services, such as wafer sorting and final testing to the semiconductor industry. They focus on logic and mixed signal semiconductors used in consumer electronics and communication devices. Its major customer TSMC continues to do well. As articulated in its 1Q15 results guidance, GTC also remains bullish about its prospects. The stock has run up to $0.14 but we continue to see a lot of value in the name because thesis has just been confirmed at the recent AGM.
Measures indicating management's intent include:
- continuous share buybacks from which has reduced the shares issued quantum by a significant 25% from 2008 to 1Q2015.
- capital reduction of $0.075 which will now take place.
- given accumulated losses have been removed, there is finally affirmation to resume dividend payments in this FY15.
Note that a 20:1 share consolidation has been proposed. So investors may acquire in even lots for ease of subsequent transactions.