I have looked at this company over and over again and it just screams china scam. They have unlimited cash but refuse to do a dividend or even buy back stock. It's very bizarre.
They are based in Singapore but not really as they are a cayman islands entity, which has been the typical setup for asia cash fraud cases. I know of several of these nasdaq companies that supposedly have a lot of cash but don't actually deploy it presumably because they are not real. I would just be careful with this one. I spent a lot of time tracing the financial paperwork prior to the ipo through various ways.
Understood, thank you for pointing out. Some of my thoughts:
With respect to cash. I'd give HMH the benefit of doubt. They IPOd barely a year ago, and accumulated the cash in the past 2-3ys. It's not that they've held it for 10+ years on the B/S. It was an almost-bankrupt operation 5 years ago. Maybe no M&A has come up yet.
HMH is not paying himself a huge salary, he owns 60% of equity, a large part of cash came from IPO proceeds which was not even deployed on SGA, very clear financial statements and all information in the 20F, no or almost no trelated-party transactions.
Aramco contract exists (contract &/or PO is in their SEC filings), the Hallib MPA exists, the Saudi facility has the certifications that match OMS services, HMH was in several podcasts and earlier in California presumably meeting investors, he is 60 years old and already rich, Sumitomo was owner for decades.
+ after reading what Lee Kuan Yew built, I'm inclined to respect/trust Singapore
TMG sounds interesting, but why do you think normal margins are 12%? The business lost money cumulatively from 2011-2022 and margins have only been 4-6% over the past ~3 yrs?
Covid hit it because it was mostly in-person engineering work, but the good side effect is that their hardware business grew, which has I think ~45% gross margins vs normal business's ~35%. Hardware is now 30-50% of sales.
Plus, I have the impression the business is more efficiently run now, in general.
In 2024-25 they invested in salespeople and engineers. TMG should experience op leverage moving forward, maybe up to $40-$50M in sales (?)
I have looked at this company over and over again and it just screams china scam. They have unlimited cash but refuse to do a dividend or even buy back stock. It's very bizarre.
OMS is based on Singapore. And they IPO'd a year ago, have said what they intend to do with the cash. I guess time will tell.
Their auditor is also one used by such frauds also.
They are based in Singapore but not really as they are a cayman islands entity, which has been the typical setup for asia cash fraud cases. I know of several of these nasdaq companies that supposedly have a lot of cash but don't actually deploy it presumably because they are not real. I would just be careful with this one. I spent a lot of time tracing the financial paperwork prior to the ipo through various ways.
Very interesting, thank you for doing the work and sharing. I'll dive deeper then.
I'm not saying for sure any of this but there are a lot of red flags. I ran this by a friend and he said the same thing.
Understood, thank you for pointing out. Some of my thoughts:
With respect to cash. I'd give HMH the benefit of doubt. They IPOd barely a year ago, and accumulated the cash in the past 2-3ys. It's not that they've held it for 10+ years on the B/S. It was an almost-bankrupt operation 5 years ago. Maybe no M&A has come up yet.
HMH is not paying himself a huge salary, he owns 60% of equity, a large part of cash came from IPO proceeds which was not even deployed on SGA, very clear financial statements and all information in the 20F, no or almost no trelated-party transactions.
Aramco contract exists (contract &/or PO is in their SEC filings), the Hallib MPA exists, the Saudi facility has the certifications that match OMS services, HMH was in several podcasts and earlier in California presumably meeting investors, he is 60 years old and already rich, Sumitomo was owner for decades.
+ after reading what Lee Kuan Yew built, I'm inclined to respect/trust Singapore
TMG sounds interesting, but why do you think normal margins are 12%? The business lost money cumulatively from 2011-2022 and margins have only been 4-6% over the past ~3 yrs?
Covid hit it because it was mostly in-person engineering work, but the good side effect is that their hardware business grew, which has I think ~45% gross margins vs normal business's ~35%. Hardware is now 30-50% of sales.
Plus, I have the impression the business is more efficiently run now, in general.
In 2024-25 they invested in salespeople and engineers. TMG should experience op leverage moving forward, maybe up to $40-$50M in sales (?)