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Starburst Holdings Limited



I added 50,000 lots of Starburst Holdings to my SRS account on Thursday at $0.555 each. I first covered this Company when it IPO last year and my article is here.

I will not spend too much time writing about the Company as you can find the annual report here.

The Company specializes in the design and engineering of fire-arms training facilities in SEA and the Middle East. The Company has been growing rapidly for the last three years and net profit hits S$13.159m in FY2014.

The Company has been generating impressive returns for its shareholders as seen by the ROE and ROA


and more importantly, the Company has little debt on its balance sheet and trading at a valuation of around 9.4x PE


The shares are quite tightly controlled with only 20% free float and each founder holding 40% of the Company.


If you want some out-dated research report, DBS and CIMB issued reports in Sep and Aug last year. The links are here and here respectively. While i like the uniqueness of this Company, my concerns will be the lumpiness of the contracts and it is good that they are getting recurring revenue now from range maintenance etc.

This shares hardly trades so if you want to cut loss and get out, it can be an issue. This is a medium term hold for me of about 2-3 years. Hopefully the Company will not disappoint and continues to fire at all cylinders.

Happy firing!


4 comments:

  1. Result just out. They made a loss in Q1 2015.

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  2. Yeah...hopefully this is because of lumpiness in revenue recognition....

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  3. fell 15% today, cut or hold better?

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    Replies
    1. Felix,,, will hold for now. I didn't had time to react.... :(

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