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Falling Knife of the Week: Artivision Technologies Limited

Artivision Technologies (SGX: 5NK) fell almost 45% during the week to close at S$0.026 on Thursday. With such a steep fall in its share price, the company – albeit ‘notoriously’ – has scooped up the Falling Knife of the Week award.

The company, founded in 2004, provides diverse computer-vision solutions and services for video security and online video monetization. It has worldwide operations, serving both the public and private sectors.

Early this month, the firm announced that is it proposing to undertake a rights issue of up to around 273 million new ordinary shares at an issue price of S$0.02 for each rights share. The rights issue will be on the basis of two rights shares for every five existing ordinary shares held by shareholders.

Artivision is looking to raise between S$4.9 million and S$5.3 million, net of expenses, from the rights issue. The company will then use the funds raised to “strengthen its financial position and capital base thus enhancing its financial flexibility to capitalise on potential growth opportunities”.

Artivision has no earnings to speak of. It made just S$20,000 in revenue and had a loss of S$2.9 million for the six months ended 30 Sep 2013. In the previous year, it made S$78,000 in revenue and saw a loss of S$2.5 million.

The firm is currently trading at around three times its book value.

 

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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.