“Falling Knife” of the Week: ITE Electric Company

knifeITE Electric Company (SGX: 581) claims the “Falling Knife” spot this week after falling 25.9%, to close at $0.043 on Friday. The company is engaged in trading and distributing of electrical distribution and control equipment. It is also an investment holding company.

Back in August, the company released its half-year financial results. Revenue was up 9% to S$10.4 million. The improvement was mainly due to an “increase in sales reported by its core business of electrical trading segment in Singapore and Malaysia.”

Net profit rose 62% to S$287,000 and the earnings per share was 0.19 Singapore cents compared to 0.12 Singapore cents last time.

Total borrowings stood at S$2.4 million and it had cash and cash equivalents of S$3.8 million.

It did not generate any cash flow from operations in either the first six months of this year or the first half of last year. S$469,000 of net cash was used in operations for the first six month of the year because of an “increase in trade and other receivables of $1.6 million”.

The company currently trades at a PE ratio of 11.3.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.