Sunday, November 10, 2013

Discovering Undervalued Overseas Listed Companies

A self-described "small individual investor" blogger writes:

MTI Wireless Edge (company website) is a company based in Israel and listed on the London AIM market (ticker: MWE.L). MTI Wireless develops and manufactures antennas and antenna systems for commercial and military applications. The business was doing well in 2006 and 2007 and net income was around $4 million at the time. Revenue and profits have slipped since the financial crisis and the company was roughly breaking even in 2011 and 2012.
The company uses the U.S. Dollar as its functional currency, so keep that in mind if you’re interested in reading their financial reports.
I know very little about MTI Wireless’ business and their prospects. The reason I’m interested in the company is that it is trading at a large discount to its net current asset value.
The company has 51,571,990 outstanding shares and the latest trade was at a price of 6.75p, giving MTI Wireless a market cap of £3.48 million or $5.63 million at the current exchange rate.
On June 30, 2013 the company had cash and investments of $7.0 million and total current assets of $15.0 million against just $4.9 million in total liabilities. Net current asset value is $10.1 million, which means MTI Wireless is trading at 0.56x NCAV.

Read more.

Disclosure: Foreign Confidential has no financial or business interest in or relationship of any kind with the above-mentioned company.