Easyknit International Holdings Ltd. message board

EasyknitInternational1218 · Guest

Easyknit International - 1218HK

Market cap USD 25m
Price HKD 0.25

Cash/share HKD 0.22
Investment in stocks/share HKD 0.18
Investment properties/share HKD 0.84
Other net assets/share HKD 0.25
Zero debt

I think the recovery of HK IPO and M&A activities will expose this stock to those looking for a listed vehicle, to inject its assets into stock market, or else, to take advantage of the liquid assets in the company and use them to expand into profitable business.

Compare this stock to Brightoil, previously listed as First Sign (933). Like Easyknit, it was a garment manufacturer as well, until a new entity came to acquire the controlling position and injected new business into the business. The announcement came on late 2007, and the financial position immediately before the announcement showed that the Company has approx. USD 82.4m in cash and liquid short term investments, with zero debt, while the market cap during 2007, prior to the announcement, was US$32-63m.

An acquirer can offer HKD 0.4 and the offer price is only equal the amount of cash and liquid investments per share. Composition of assets in Easyknit case is more difficult to dispose compared to the ones owned by First Sign, however, with property market heading up once more in HK, I believe it looks just as lucrative for any company looking for a listed vehicle in HK.