Spindex Industries (564.SG) +10.5% at almost 4-month high of $0.315 on above-average volume as interest in otherwise thinly-traded stock piqued by trading idea issued by DBS Vickers, says Dow Jones.

Broker says Singapore-based maker of precision machine parts warrants closer look, has potential to reach $0.40 given its $22.5 million cash hoard, equivalent to more than two-third of market cap, 6.5% FY10 dividend yield, consistent track record of effective cost management.

“Spindex has proven its ability to manage (itself) well in downturns like the global crisis in 2008. It is also nimble enough to ramp up production when demand recovers,” says DBS Vickers.

Notes 1H10 earnings +49% on-year after 26% fall in 2H09. Whether current gains sustainable unclear as newsflow on company usually thin, with only 8 filings with SGX so far this year, mostly pertaining to earnings, key personnel changes.

Orderbook quotes suggest minimal upside beyond $0.325 intraday high.