22-10-2013, 04:34 PM
(22-10-2013, 04:17 PM)opmi Wrote: [ -> ]Why pay out dividend when capital is valued at 3X by Mr Market?
Because if no dividend paid, the valuation might drop.
(22-10-2013, 04:17 PM)opmi Wrote: [ -> ]Why pay out dividend when capital is valued at 3X by Mr Market?
(22-10-2013, 04:00 PM)CityFarmer Wrote: [ -> ]The PB (post IPO, adjusted with estimated proceeds) is 1.5 (NTA of 20 cents, with IPO price of 30 cents) for MaxiCash. Refer to page 46
The PB (post IPO, adjusted with estimated proceeds) is 1.9 (NAV of 16 cents, with IPO price of 30 cents) for MoneyMax. Refer to page 27.
(25-10-2013, 10:27 AM)momoeagle Wrote: [ -> ]When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?
(25-10-2013, 10:44 AM)Clement Wrote: [ -> ](25-10-2013, 10:27 AM)momoeagle Wrote: [ -> ]When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?
Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.
(25-10-2013, 11:05 AM)CityFarmer Wrote: [ -> ](25-10-2013, 10:44 AM)Clement Wrote: [ -> ](25-10-2013, 10:27 AM)momoeagle Wrote: [ -> ]When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?
Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.
The maximum interest charged is 1.5% per month, 9% per 6 months or 18% per year.
The tenure of ticket is usually 6 months i.e. 9% interest on loan amount. Interest is collected upon renewal, thus the interest is not compounded.
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Pawnbrokers Act, 16.—(1) A pawnbroker may take profit on a loan on a pledge at a rate not exceeding that specified in the Second Schedule.
Second Schedule stated a maximum of 1 1/ 2% per month on the amount of the loan.
Ref: http://statutes.agc.gov.sg/aol/search/di...0#pr16-ps1-.
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(25-10-2013, 01:26 PM)valuebuddies Wrote: [ -> ]If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.
Can someone help to clarify?
(25-10-2013, 02:46 PM)d.o.g. Wrote: [ -> ](25-10-2013, 01:26 PM)valuebuddies Wrote: [ -> ]If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.
Can someone help to clarify?
Anyone can bid for items at the auctions. Some may want to buy for their own use, others to resell, others to melt down.
Pawnshops normally use a low loan-to-value ratio to protect themselves against depreciation of the collateral whether it's gold, a watch or something else.