Memory Devices( MDL ) has a relatively short history from 2001, however its achievements thus far is nothing short of amazing. From a small office in Dongguan to a company acquiring 100% of TwinMos Technology. I remember vaguely that MDL share price was lingering around its IPO price for some time. Too bad then, I did not gave it a second look.
MDL is principally engaged in the research and development of solid state memory, DRAM and Flash memory and is widely used in consumer electronics such as MP3 players and thumbdrives. The is also a secular trend that consumers are upgrading or fitting their devices with higher memory capacity with after purchases of digital devices like digital camera and handphones. As the pixel on digital cameras or handphone camera increase, the need for higher portable memory increases. There is also rumors that Microsoft is launching its own version of PSP. However, that is still pure speculation. Without doubt is the increase demand for portable memory like Flash.
MDL aims to be a No.2 market player in the solid state memory products industry which, in according to source from iSuppli and compiled by DigiTimes - April 2005, is dominated by only one strong player with revenue of US$2.45 billion in 2004. The next two larger players had revenue in the range of US$726 million to US$740 million in 2004.
MDL had publicly expressed that it will be actively looking for opportunities to expand its geographical reach and grow it revenue, organically as well as through merger and acquisition.
MDL entered into a share exchange agreement to acquire the entire issued share capital of TwinMOS for US$96.8 million by way of the issue of 375.2 million new MDL shares priced at 42 SGD-cents per share. The acquisition is intended to elevate MDL a few more rungs up the ladder in the multi-billion dollar global solid state memory market. The acquisition is expected to be completed in 3Q of 2006. For readers who are clueless about TWINMOS.
Microft is expected to launch its VISTA operating system next year in 2007 a delay from its proposed launch date. As yet, the system hardware requirements are yet to be confirmed. One thing certain would be that it would be memory intensive just like Looking glass from SUN. However, I saw some new laptops with the sticker, Vista ready. Judging from the specs, I observed that at least 512MB DDR2 memory is needed. I expect end users will be buying new computers then fitted with more main memory( DDR2) which could potentially boast the bottomline of MDL specially after the successful acquisition of TWINMOS. This is a demostration of the ambitious management. The acquisition of TWINMOS allows MDL to reap economies of scale and consistent supply of memory chips for its own manufacturing. Maybe the delay of the launch of Vista by Microsoft may work in favor of MDL. A concern would be overstocking of inventory by manufacturers would cause a drop in prices of DRAM prices. It is just a low possibility.
Wired.com
Higher Ram prices may affect Vista
Vista to use more memory?
Windows Vista makes case for 2 GB of system memory, says Samsung
MDL recently concluded an exciting tie up with POTEVIO(http://www.potevio.com/en_new/index.asp), China's biggest handset maker. The increasing need for higher storage in mobiles will help drive the demand for Flash memory. Flash is lighter and more hardy than HDD based memory storage. The outlook for MDL looks bright indeed. POTEVIO is an IT products manufacturer and distributor as well as a service provider in the telecommunication industry where it is involved in both fixed line and mobile communications. It is one of the top 100 enterprises in China’s IT industry and was ranked No. 1 amongst the top 100 Chinese Electronics & Information Enterprises in 2001 and 2002. In 2003, POTEVIA was ranked by the Ministry of Commerce of China as the 5th largest enterprise, both amongst the top 500 largest import and export enterprises and the top 200 largest export enterprises. This Chinese biggest mobile phone producer has four self-owned product brands (Capitel, Eastcom, Bird and POTEVIO), four joint venture product brands (Ericsson, Nokia, Panasonic and Motorola) and two co-brand products (POTEVIO Sanyo and POTEVIO Toshiba) in China. In 2003, it achieved a production and sales volume of over 50 million units of handsets.
In its 1Q06 results, MDL announced a 59% increase in turnover with a corresponding 53% increase in gross profits. This is within my expectations.However 2Q results should be lower as expected as contribution from DRAM is seasonally lower in the 2Q. You can similarly get this information from chip testers like UTAC.
Based on DCF, 
Today's share price of 0.37 represents a 22.8% discount to its intrinsic value. However do note that, I was conservative in my calculations taking into account the cyclical nature of the industry it is in.
Cheers
Niversphere.
Moore's Law: An empirical observation by Gordon Moore, co-founder and chairman of Intel.
Observation: New generation memory chips was introduced every 3 years woth 4 times memory capacity as that of the previous one. Alternatively, number of transistors on the memory chip becomes 4 times every 3 years or double every 18 months.
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Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information
Memory Devices :: Just A Step Away From Being Top Of The World
Ausgroup :: Tapping on Aussie Development
Ausgroup is a recent Sesdaq listed company (27 April 2005). It issued 52 million shares at 22 cents apiece during its IPO raising $8.1 million to fund working capital. I had swore off investing in Sesdaq listed company after an unpleasant experience with Automated TouchStone. Never heard of it? It's ok, you would miss it. However, Ausgroup is such a gem comparatively and is really hard to ignore and I decided to invest in Ausgroup for this exception. Ausgroup's operations are mainly focused on Australia.
Ausgroup is an integrated multi-disciplinary engineering services provider serving mainly the oil and gas and mining-related which includes extraction and processing of mineral ores industries. From industrial construction to maintenance services, the Group is able to provide total engineering solutions and specialist services across a variety of fields.
The Group's principal activities are undertaken through its engineering division and services division respectively. The engineering division comprises of its oil and gas, LNG ("Liquefied natural gas") projects, fabrication and industrial construction business units while the service division is made up of its maintenance, protective coatings, insulation and refractory linings business units.
The Group services the needs of renowned customers from the Energy sector (oil and gas, LNG) Apache Energy, Woodside, Shell, BP, Chevron and Roc Oil and Mining Resources( Iron Ore, Nickel, Gold, Coal, Alumina)Rio Tinto, BHP, Wesfarmers, Alcoa World Alumina and Worsley Alumina.
The business model of Ausgroup is similar to the water treatment companies. It a basica Build-Maintain-Upgrade business model. This provides Ausgroup with recurring income from completed projects which is nice to have. However, I observed some projects completed by Ausgroup are on a rolling contract basis for maintanence probably favoring the other party. This could be a slight concern for investors in Ausgroup. However, the management touched on the point that maintanence is always in demand and could buffer Ausgroup's performance even in difficult times. True to a certain extent, but not to be too optimistic about.
Based on Ausgroup's Investors Presentation, they provided an insight to their growth prospects of the industry they are in. 
* information is based on insider information, the integrity of the news cannot be verified. 
Ausgroup book order already looks promising going into 2007.
The management highlight several strategies going forward.
In Australia, Ausgroup continued to focus on Energy and Mining activities,target defence contracting and continue to grow their services business unit. To form joint ventures and alliances with Gorgon modules and defence ship building. The management possibly hinted at future mergers and acquisitions in the near medium term.
Ausgroup recently placed out a total of 39,477,000 new ordinary shares at the issue price of S$0.2896 for each placement share. The placement increased the total issued shares to 339,477,000 ordinary shares. This took place on 5th May 2006. EPS will be diluted to 1.0 Australian cents from 1.2 Australian cents based on the 6 months ended 31 December 2005.
The estimated net proceeds from the Placement, after deducting expenses will be S$1.2 million. The net proceeds will be used for working capital. My opinion on this share placement is a positive development for Ausgroup. It increases the liquidity of Ausgroup shares which usually plagued small share issues, healthy take up of new share issued and provides long term investors an opportunity to take part in the infrastruture building of Western Australia.
Extracted from the article Hu Jintao's visit to Australia:
"..............
While speeding up strategic economic restructuring, we are vigorously implementing the strategies of revitalising China through science and education, of sustainable development, of the development of the west and of renewal of the old industrial base of north-east China.
China enjoys a vast market, abundant labour, social and political stability and a vibrant momentum for development.
A stronger and more developed China will bring growth opportunities and tangible benefits to other countries in the world.
China and Australia are highly complementary economically.
Blessed with a vast territory and rich resources, Australia boasts of economic and technological successes.
The potential for China-Australia economic cooperation is immense.
Past, present or future, we see Australia as our important economic partner.
China-Australia trade grew rapidly in recent years from $US87 million ($A124.67 million) in the early years of diplomatic relations to $US10.4 billion ($A14.9 billion) in 2002.
China has become Australia's third largest trading partner, the fourth largest export market, and the fastest-growing one.
Australia is China's ninth largest trading partner and the biggest supplier of wool.
Over the years, China has purchased large amounts of iron ore and aluminium oxide from Australia which has such energy and mineral riches.
Last year, the two countries signed a 25-year, $25 billion deal on LNG in Guangdong, thus laying a solid foundation for bilateral energy cooperation. ......"
Another related article:
President Hu Jintao Meets Australian Business Leaders and New South Wales Governor Marie Bashir and Premier Robert Carr
Thread from CNA on AusGroup:
CNA Market Forum - Ausgroup
Investor Relations - ZaoBao IR
Based on DCF, 
Today's share price of $0.305 represents a terrific 96.7% discount from its intrinsic value.
Cheers
Niversphere.
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Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information