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Monday January 14, 2013
Top stocks 2013: Asia Pacific Wire & Cable
by William Velmer, editor S.A. Advisory (courtesy of Dick Davis Digest) Asia Pacific Wire & Cable (APWC) is a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in selected Asia-Pacific markets. Our top pick for 2013, we believe that you will not find a fundamentally cheaper stock anywhere. During 2012, revenue contracted somewhat because of a sale of a division and the re-start-up of certain Thailand divisions that had been shut because of flooding during late 2011. Regardless, revenue for the first nine months of 2012 reached $332 million and net income/fully diluted shares (13.8 million) equaled $0.42. At present the company holds $88 million in cash on their books or $6.38/share and almost twice the current share price of $3.36. The total book value of APWC equals $225 million or $16.30/share, almost five times greater than the current share price ($3.36 as of this writing). The total market-cap of APWC is presently $47 million. A 51%-owned division operating within Thailand (Charoong Thai Wire & Cable, CTW) is worth $80 million. The company recently announced a $2 million dollar share buy back program, which commenced a few weeks ago. We believe that revenue and earnings will start to accelerate during 2013 and 2014 because of renewed growth within Asia. We anticipate revenue for 2012 will reach $450 million and net income/share should equal around $0.55+. We believe that revenue during 2013 will easily surpass $500 million and net of around $0.75-$1.00/share. Bottom-line: APWC is trading at half cash, 20% of total book, a P/E est. for 2012 of around 6X and an extremely low PSR, and has an active share-repurchase program and the possibility of a takeover at much higher prices. We rate APWC with a Strong Buy Rating at current levels for short and long term appreciation potential. Learn more about this financial newsletter at William Velmer's S.A. Advisory. Related articles 
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