at least based on historical performance in terms of income statement and balance sheet, Super comes out ahead of VizBrandz. This thread is interesting because the two companies are local and very easily investigated by investors of the hands-on type.
Petra Foods and Super Group in S$1.5m JV to market and distribute instant 3-in-1 coffeemix and other convenience beverages in Indonesia.
Based on the last reported results, it seems Viz Branz has a revenue/share of around $0.232 for the half year. If we do a simplistic projection, this may potentially translate to a full year value of $0.464/share. At current market valuation of $0.285/share, this translates roughly to a price-to-sales ratio of 0.61.
On the other hand, based on a projected full year earnings of 4.2c/share, current market valuation will translate to a PE of 6.79. Current Price is also slightly above reported NAV of 26.3c/share.
Notwithstanding the legal tussle between father and son, it does appear that this company has been valued pretty pessimistically by Mr Market. Is this warranted? Something to mull over.
Based on Price/Sales, PE and NAV valuations, my opinion is that current market valuation offers a reasonably decent margin of safety. We should not forget that the business is well-established, profitable, cash generative and is in a net cash position as well.
(05-04-2011, 11:36 AM)valuehunter Wrote: [ -> ]Based on the last reported results, it seems Viz Branz has a revenue/share of around $0.232 for the half year. If we do a simplistic projection, this may potentially translate to a full year value of $0.464/share. At current market valuation of $0.285/share, this translates roughly to a price-to-sales ratio of 0.61.
I thought I should add here that in analyzing Viz Branz's sales/revenue or revenue/share with a view to value the entire business or the unit share, we should bear in mind that Viz Branz's sales/revenue are nearly entirely done/recorded at wholesale prices. So the actual economic value or revenue impact at the retail level - where the goods are usually bought by regular consumers at retail prices for cash - is actually higher, possibly by as much as 25% - the normal mark-up by retailers.
Hi, does anyone know why VIZ shares has been dropping steadiliy since beginning of this year?
Ben Chng not buying anymore. go to normal course liao.
Just checked my bank account and noted a very nice credit from Viz Branz's $0.0075/share Interim dividend for FY11. Feeling good, as I have use for the money to buy things.
I now look forward to the coming FY11 (ending 30Jun11) full-year results expected by 31Aug11 and the usual Final dividend (last FY10: $0.0075/share paid on 30Nov10, after a 2-for-1 stock split in Sep10).
(15-04-2011, 12:46 PM)freedom Wrote: [ -> ]Ben Chng not buying anymore. go to normal course liao.
Do you think there's still value to buy this stock? Will it go back to 0.30 or 0.20?
if the rumours of ben chng's buying on margin is true, and that his intent of doing so is to gain control to sell the company, an unfavourable outcome for him on the legal tussle between him and his dad may result in ben (forced) selling the many shares he acquired over the year.
regardless of whether this scenario pans out, legal battles between key managers is no good for shareholders. worse still, these two key managers are family related. how can the business progress if the father and son cannot agree on its future direction? at best its growth slows to near stagnation.
no good can come out of this episode. if either of them leaves, the company's leadership will be hit. if neither of them leaves, the legal tussle will leave a bad taste in each other's mouth long after the episode. the strained relationship will hinder teamwork, and possibly create camps among key executives. this is not good in the long run.
everybody sees value differently. personally i don't think its current price justifies the present state of affairs.