Marco Polo Marine: Patience will be rewarded.

I added to my long position in Marco Polo Marine as long term support was tested. Today, its share price touched a high of 35c before closing at 34.5c on the back of rather high volume. The positive divergence between the CMF and price action has played out. The MACD is rising in the negative territory and we could see price going higher and momentum going positive once more. A retest of 37c, the high of the double top, could happen.

Daily chart.

Weekly chart.

Fundamentally, Marco Polo Marine presented an impressive set of numbers:

All-time high net profit of S$21.3 million against consecutive 8 years of record high revenue at S$89.8 million and record high gross profit at S$29.2 million for FY2012.

Record gross profit and net profit attained with margins at enhanced levels of 32.5% and 23.8% for FY2012, representing increases of 4.4% points and 3.0% points over FY2011 respectively.

Operating cashflow position reversed from a net cashflow used in operations to a net cashflow generated from operations of S$34.5 million in FY2012.

EPS of about 6.3 Singapore cents for FY2012, representing an increase of 23.5% over FY2011, while NAV per share increased by 14.4% to 41.4 Singapore cents as at 30 September 2012.

Declaration of a special interim dividend of 0.8 Singapore cents per share for Q1 FY2013.

See: Media Release.

In earlier blog posts, I stated my reasons for believing that Marco Polo Marine's share price is too low and that we could see a much higher price over time.

If we expect Marco Polo Marine's shares to trade at similar valuation to its peers, a PE of 8x would value each share at 50.4c. This implies a 46% gain from the last closing price of 34.5c.

Patience will be rewarded.

Related post:
Marco Polo Marine: Accumulation mode.

Vending machines in the USA.

On this last trip to the USA, I came across a couple of vending machines that I have never seen before anywhere else.

Guess what this one was selling?

Scratch and win cards! US$3.00 each.

What about this one?

Electronics! Amazing, isn't it?

In a situation where there is a shortage of space and labour, vending machines could be the answer for products which might not really need salespeople.

In Singapore, we see machines selling drinks, snacks and even Gardenia bread. However, we have not even touched the tip of the iceberg. They could be one of the answers to Singapore's problem with high rentals and a shortage of labour.

Related post:
Distinctly Japanese.