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Hidden Value Dynamite's avatar

With LaserBond, I am still waiting for their numbers regarding their expansion into India's market. They got in relatively early before the announcement from US companies pulling out some of their factories out from China. If there's a report / news that they have secure a contract deal with Apple or any other India's big companies to help scale, that would be great advantage for Laserbond.

https://www.austrade.gov.au/news/success-stories/australia-s-advanced-manufacturing-sharpens-focus-on-india

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Hidden Value Dynamite's avatar

I haven't done a deep dive DD on this stock but looking at the numbers raises my eyebrow with SGI:

1. Are the interest debt being locked in fixed term or variable? If fixed, how long will that be? That way we can determine how long it will take for the company to pay off its debt in relation to its growing market cap.

2. What does the bond market tell you about SGI ?

3. What happened to fy22 with negative FCF?

4. Have they laid out in details for each of their subsidiaries profits and growth? Otherwise, it is hard to determine if one of their subsidiaries that are performing well instead of the rest.

5. Are they planning to do further acquisitions?

6. With their dip in ROCE, did they announced anything about protecting their margins? We don't want to see them losing margins and ended up like the builders.

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Mucrama's avatar

I just did a write-up on SGI so you can go look at that, debt is rolling off in the next 12 months I think around $400k/ QTR you can find comments in reports, Negative FCF was just acquisition and general cap-ex expenditures- one-off nature and timing, H1 23 profit $300K, H1 23 FCF $1.2M. Yeah Margins will be the driver of returns, they are expanding and once debt rolls off I expect 2%+ margins, Long term play.

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