Brokers' take

Nam Lee Metal | Buy Nov 29 close: S$0.39 Target price: S$0.56 Phillip Securities Research, Nov 29

Net cash (cash less total borrowings) of S$40.8 million represents 42 per cent of market capitalisation. We continue using the current-asset value (current assets less total liabilities) of 37.4 cents a share to demonstrate the limited downside risk.

The outlook is stable to positive. The tone of management commentary is now more upbeat compared to previous quarters, mentioning that the recovery in the US economy could have a positive impact on the aluminium industrial product business. This refers to the aluminium frames for container refrigeration units.