SMD far too cheap with still good prospects in 2023.
Here are 2 postings made in our active member-only lounge December 2nd, 2022.
I still like SMD (8.60) this stock is now dirt cheap trading at a trailing p/e of only 5.5 with likely some continued dividends. SMD did report 0.30 EPS in the 3Q. despite the near total drop off of Covit testing kitts, which previously was their big earnings generator. With medical and equipment being such a big business, I got to believe they will in time find a new import winner and so earnings will come back, even without their covit tests previous windfall. SMD stock has dropped some 50% in price since early 2022 which I think is now overdone as all the bad news well priced in. But one may have to be patient until a news announcement on their next medical import winner. In the meantime their core biz still evidently is producing some basic earnings, likely over 1 Baht per share for 2023. Medical equipment is a huge business here as elsewhere.
Here is a follow up posting made to our active member-only lounge December 16, 2022.
SMD (8.70), my medical equip. stock pick, was in the Thai press this week stating they will be offering a new Covit test early next year which can at the same time also detect Influenza flu, all at once/ all in one. They will also be offering some new hospital software packages... They project 2.2 Bill. of revenues next year up 10% from estimate 2 Bill. this year. First 9 months SMD reported 1.84 Bill of revenues. Hence its profitability into next year looks stable at I guesstimate 1.40- 1.50 Baht EPS per share for this and next year. SMD, p/e at so 5.9 is too cheap and hence my stronger buy view at current prices is hereby today affirmed! SMD reported 1.30 EPS for first 9 months but realize the profit margin was good due to Covit test kits, en masse. Insider transactions are not significant in my view with some buying of late, (16/09/2022 105,300 at 9.85, Purchase). But also some selling in late August at 10.40 (29/08/2022 200,000 at 10.40, Sale).
