Sharing a story and not a call to buy or sell. During my last work trip, I brought a few complimentary packets of TWG from Dusit Thani hotel in bangkok (i believe hotel is considered high end). Didn't try out the tea for a while and left in the kitchen.
Yesterday my mom sent me this message:
[
attachment=1296]
For those who can't read chinese, it means she is very satisfied with the quality of the tea.
Of course, it may not equate to Osim overall success, but is comforting to know quality of product.
Vested.
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TWG is no doubt a good quality product, and its biz model is also desirable.
My nephew has started a cafe biz, and TWG is one of the offerings. It takes a while for TWG to qualify the cafe, which is pretty rigid. The TWG branding will stay, IMO.
TWG is a valuable asset to OSIM.
(not vested, and not interested on OSIM)
Yes, I would agree TWG TEA is the best so far.
sorry, a question, is drinking red tea good for health?
was wondering since i drink kopi only,
My guess is their existing business slowing down fast.
This is very interesting. $11m non-core investment from "cash hoard" of $400m which includes proceeds from $170m CB issue last year...
Based on the capital management idea mooted by mgt, so far how much have they bought back their shares post CB issue?
(06-05-2015, 10:28 AM)specuvestor Wrote: [ -> ] (14-10-2014, 10:03 AM)specuvestor Wrote: [ -> ]Apple and Microsoft also use debt to buy back shares or issue dividends. "Capital management" (not capital allocation) are non operational lower quality shareholders' returns. However the difference is that nobody questions the cash they have.
If Osim didn't do the CB and proceed to share buybacks then at least we know the money in their coffers are "fungible" to SGD. Now we won't know.
(28-08-2014, 12:28 AM)specuvestor Wrote: [ -> ]Count me in as another doubter of the conundrum that is Osim
Anyone who has been following Osim long enough knows the conundrum of this company. It is not about the PnL because it is getting obvious it is unreliable.
Very obvious now that the possibility of cash hoard is non-existent is getting higher, and CB issue was a stop gap measure, until the next story could be cooked up
Expansion into ISIS neighbour Turkey, and Communist Putin controlled Russia must have sounded too ridiculous and not juicy enough to go ahead.
http://singaporestockmarketnews.blogspot...n-tan.html
From RHB research:
OSIM International - Beam Me Up Henn Tan
OSIM has made a minor strategic investment in Singapore-listed Trek 2000. This is not expected to have a material impact on its profitability and balance sheet, hence, we maintain our NEUTRAL call and TP. Tech 2000 is a tech company with pedigree – it invented the USB ThumbDrive and, in collaboration with OSIM, is now striving to commercialise its wireless Flucard technology, which has many application possibilities.
Taking up an 8.4% strategic stake in Trek 2000 International (Trek 2000) (TREK SP, UNDER REVIEW). OSIM International’s (OSIM) investment cost is SGD10.9m, representing an estimated 7x FY16F P/E and 6.4x EV/ EBITDA. It ought to add earnings of around SGD1.2m next year. This stake acquisition is not expected to have a material impact on the company’s profitability initially, but could grow going forward. OSIM has no board seats, but expects to add value to Trek 2000 by providing input into commercial aspects of the latter’s technology.
Possibilities abound
Flucard is a proven technology, which represents a cost-efficient way of adding wireless features into devices. This can be used in consumer electronics as well as medical and wearable technology. We believe there are exciting possibilities to incorporate Flucard into OSIM’s existing and new wellness and massage products. Examples include the ability to monitor and upload medical statistics wirelessly to doctors.
War chest barely dented
Separately, OSIM also acquired a 21% stake in Hong Kong-incorporated Laboratoires du Palais Royal Ltd for USD2m. We understand this is a cosmetic product start-up, which is preparing for product launches. As of 1Q15, OSIM has a net cash position of SGD292m and is in a position to increase its stake further. We think the company could remain on the lookout for more acquisition opportunities to expand its suite of brands and products.
Maintain NEUTRAL
We maintain our NEUTRAL call and SGD2.00 TP, pegged to 15x FY15F ex-cash P/E, given its poor earnings visibility at the moment. We believe SGD1.60 remains an excellent entry-price, which is based on 12x FY15F ex-cash P/E, its historical trough valuation.
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The investment in Trek 2000 International, is a strategy investment for OSIM? May be I don't know OSIM enough to know the synergy between them.
(not vested)