Fintec Global Bhd (Rm0.05) - Another greatly undervalued stock

Fintec is an investment holding company, operates as a technology incubator. The company's Technology Incubation segment engages in the provision of management and strategic advisory services; research related activities; business networking and funding for its incubate companies.

Its investment in 6 listed companies can be broken down into several broad areas of focus as follows:

Fintec has 602 million issued shares. At 5 sens, its market capitalization is only Rm30.1 million. Its assets and liabilities are straight forward. No borrowing and has about Rm22 million cash, that is about 3.65 sens a share.

The number of shares of the 6 listed companies held by Fintec are as follows:

At today's closing price of 20.5 sens for Vsolar, 5 sens for AT, 33 sens for Focus, 1.5 sens for Netx, 4.5 sens for Mlabs and 11 sens for DGB, the market value of Fintec's holding in these company is Rm192.7 million. That is about 32 sens for each Fintec share in addition to the 3.65 sens of cash per Fintec share.

There were 4.18 millions Fintec shares queuing up to sell at 5.5 sens today. For the whole day not a single lot was done at 5.5 sens. At the end of the day 0.93 million share were sold down to buyers at 5 sens. It is hard to understand why Fintec is selling for only 5 sens.

For its quarterly result ending 30 June 2019 that must be announced by end of August, I am expecting Fintec to announce an earning of about 4 sens a share for the net increase of Rm27.9 million in the value of its investment holding in these companies from 1st April to 30th June.

Since 1st July, the value of its investment in these 6 companies has increased by another Rm69.1 million to Rm192.7 million.

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