Not only Pico. There may be other companies from other countries interested in Kingsmen as well since Kingsmen has presence in many countries. Remember the Dubai company, Depa that bought over Singapore's Design Studio?
http://www.arabianbusiness.com/depa-buys...44675.html
(14-09-2011, 09:57 PM)FFNow Wrote: [ -> ]Not only Pico. There may be other companies from other countries interested in Kingsmen as well since Kingsmen has presence in many countries. Remember the Dubai company, Depa that bought over Singapore's Design Studio? http://www.arabianbusiness.com/depa-buys...44675.html
very good observation. my guess is that kingsmen will be offered at about 90cts/shr. hang on tight to your kingsmen shares.
(14-09-2011, 09:30 PM)karlmarx Wrote: [ -> ]i believe this is what most of kingsmen's long-term investors have come to conclude. i also think the chances of a buy-out is pretty high, and the acquirer is likely to be pico. running kingmen's business successfully will require design savvy owners. given that few owners of capital possess such knowledge or talent to be confident in running the business, the chances of the acquirer being from another industry and thus paying an overpriced amount (due to ignorance) for kingsmen is low.
competitors of kingsmen probably know the predicament that ben and simon is in. and they are probably the ones who have been low-balling them. time is not on kingmen's side. pico, or whoever, may just be waiting for ben and simon to accept their low(er) offers.
I'm not here to speculate on the probability of a buyout offer for Kingsmen, although I did allude to this on my blog. Suffice to say that it is possible for a good and well-run business to be bought over at more than fair value, as the price which may be offered would place value on aspects of Kingsmen's business which Mr. Market is probably currently neglecting. Thus, it may not be "ignorance" per se which may make another company quote a higher price than what Mr. Market is offering; but the fact that such suitors understand the quality of the business and the goodwill associated with a strong brand and a good reputation.
Ben Soh has himself admitted that he has been approached on several occasions with offers for the Company, which were all decidedly "too low" for him to consider. Hence, he and Simon Ong are proceeding with their 5-year plan to double revenues by 2015. I think that the founders do understand that as the business grows steadily, it also becomes more valuable as a result.
And this can only mean that if a suitor eventually does make an offer for all the shares of Kingsmen, it will be at a valuation/price which the two founders are satisfied with!
Checked my bank account this morning and noted a nice credit from Kingsmen's $0.015/share Interim dividend. Feeling great!
I now look forward to (1) the coming Q3 results expected by 15Nov11, and the FY11 full-year results expected by 29Feb12; and (2) the Final dividend for FY11 (FY10: total $0.025/share) expected in May12.
Meanwhile, I would find time to inspect Kingsmen's work in the H&M flagship store, as well as in the new Abercrombie & Fitch flagship store when it opens sometime in Q4.
(23-09-2011, 10:05 AM)dydx Wrote: [ -> ]Meanwhile, I would find time to inspect Kingsmen's work in the H&M flagship store, as well as in the new Abercrombie & Fitch flagship store when it opens sometime in Q4.
I was at H&M in the evening. It was still crowded with queues outside. The design was simple yet elegant. I will post pics in my blog soon.
(25-09-2011, 01:41 PM)FFNow Wrote: [ -> ]I have updated my blog with my visit to H&M with pictures. Link at http://financiallyfreenow.wordpress.com/...hip-store/
Hi thanks for posting up the pictures! Wow, I was surprised at how crowded it looked, and this is weeks after Opening Day! I myself would probably not find reason to stop by as I hardly shop for apparel and I also don't have much of a thing for "branded" stuff. But just for the experience of seeing how Kingsmen had done up the fit-out and to see the consumption patterns of our youth, it would be an interesting experience indeed!
(25-09-2011, 02:02 PM)FFNow Wrote: [ -> ]Yes MW, I was surprised with the crowd as well. Shows Singaporeans are indeed fashionistas. Singapore was ranked 8th most fashionable city just recently and we were ranked higher than Tokyo! Hard to believe. http://forums.sgclub.com/singapore/singa...66533.html
On a sidenote, Singapore was ranked 7th most popular destination for luxury retailers - http://sbr.com.sg/commercial-property/ne...-retailers. This will attract big names to Singapore and hope Kingsmen can secure some projects as well.
Wow yes surprising indeed! Too bad I am just not into fashion - normally you can catch me in Orchard wearing bermudas and a pair of flip-flops LOL! I guess I should feel happy that Singapore is ranked so high - it attracts other luxury retailers to set up shop here and provides more business opportunities for Kingsmen.
As to whether the momentum will continue, I guess the global economic situation will also play a part. If there is a sharp downturn and people in Asia curtail their spending, then retailers may also have 2nd thoughts about setting up shop here; thus Kingsmen would be adversely affected.
(26-09-2011, 10:08 AM)Musicwhiz Wrote: [ -> ]As to whether the momentum will continue, I guess the global economic situation will also play a part. If there is a sharp downturn and people in Asia curtail their spending, then retailers may also have 2nd thoughts about setting up shop here; thus Kingsmen would be adversely affected.
Yes that's true. Andrew has said that too during Invest Fair.