7230.LK - Tomei consolidated

[yadayada]

Not much to say imo, read the VIC write up, it is even cheaper now. Trading at like 2-4x earnings. They sell jewelry in Malaysia. Had a bad year because gold dropped like a rock last year. Seems like a well run company, selling at insane valuation?

 

pretty good vic write up

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/103710

[justinbaka]

I somehow managed to stumble upon this thread and it would seem that Tomei is still selling at the same or even lower price than in June 2014 (when this thread was created).

 

The shares are still trading at 46% Current Asset - total liability which does seemed absurdly cheap for a company like Tomei. Don't think inventory needs to be discounted by 50% (if we based upon the strictest Graham net net formula) as inventory would probably be primarily gold which is highly liquid and the book value would probably be the liquidation value.

 

As a Malaysian, I can also testify that Tomei is a very well regarded brand alongside Poh Kong and Degem as mentioned in the VIC report you shared. The management also seemed opportunistic (with the low gold price) with the increase in inventory in the most recent quarter.

 

Definitely a very interested idea to explore. Time to dig into the annual reports!

[yadayada]

I gave up on it after I couldn't buy it on IB.

[justinbaka]

To be fair, it is trading at extreme illiquidity at the moment. I can't even purchase it from Malaysia. Trading volume is 0 for the last one week, and I think that should warrant some liquidity discount..