Saw imm had another store call challenger mini
There is a small outlet in Thomson Plaza and also one in AMK Hub. Not bad locations as there is no/little competition for IT hardware products in those areas.
price is pretty stable at .42 even after the issue of bonus shares.
Challenger is opening another new store in the new Changi City Point mall, located opposite the Singapore Expo MRT Station.....
http://info.sgx.com/webcoranncatth.nsf/V...E001241B4/$file/Announcement-NewLease-Changi-20110512.pdf?openelement
With an area of approx. 5,200 sq ft, this new store is quite a big one.
Checked my bank account this morning and noted a very nice credit from Challenger's $0.011/share Final dividend for FY11. Feeling great!
From Challenger's corporate website.....
http://www.challengerasia.com/
I have noted that in the last 3 months (Mar/May11), Challenger has opened a total of 6 new store outlets - 2 in Malaysia: Mahkota Parade/Malacca (opens 15Apr), and Suria KLCC/KL (opens 13May); and 4 in Singapore: Clementi Mall (opens 25Mar), Ang Mo Kio Hub (opens 6Apr), Northpoint (opens 21Apr), and Yew Tee Point (opens 26May).
From the Challenger Singapore website....
http://www.challenger.com.sg/index.html
I have also noted that this month (Jun11), Challenger is organizing a total of 5 roadshows in Singapore - at Tiong Bahru Plaza (20/26Jun), IMM, Level 2 (20/26Jun), Funan DigitaLife Mall, Main Atrium (24/26Jun), Clementi Mall, Main Atrium (24/30Jun), and Serangoon nex (20/26Jun).
Without any doubt, Challenger is a very hard-working enterprise poised for further growth!
I don't think the road shows bring in much revenue.
Saw the one at jurong point and imm a couple of months back. not that much crowd interest except couple of passerbys or prc enquiring.
Challenger is due to release its 1H (ending 30Jun11) results by 15Aug11, and it appears that some investors have started to accumulate the shares in the last 2 days, probably in anticipation of positive results and something else. This is indeed a good sign!
With a total of 28 outlets in Singapore alone - comprising 1 Challenger Megastore, 16 full-format Challenger stores, 6 Challenger Mini stores, and 5 small-format Matrix IT Gallery stores - there is little doubt that Challenger Group is now the dorminant force in IT products retail/distribution in Singapore. Challenger has scheduled to open 3 more outlets - in JCube (Q4, 2011), 112 Katong (Q4, 2011), and Changi City Point (Q4, 2011) - by Dec11....
http://www.challenger.sg/locations_chall...ingoutlets
It is also interesting to note that Challenger has recently started selling refurb noteboks in its on-line store - 12buy.sg....
http://www.12buy.sg/OnlineShopping/New%20this%20month
I look forward to the coming 1H results and another Interim dividend (FY10: $0.012/share), which is usually paid out in early Sep.
This morning (21Aug11), someone decided to move Challenger's share price upwards to $O.465, up 12%, by buying just 1 lot. I wonder whether such kind of irrational share price movement has anything to do with Challenger's planned release of 1H's results scheduled for 3Aug11....
http://info.sgx.com/webcoranncatth.nsf/V...20014353A/$file/ChallengerAnnouncementondateofreleaseof1Hresults20110719.pdf?openelement
Based on Challenger's latest 345.208m issued shares and the last done share price of $0.465, market cap. is now $160.5m.
A relevant question: Is Challenger's current market cap. at approx. $160.5m too high?
Against Challenger's FY10's NP of $13.663m (+24% yoy over FY09's $11.056m), Mr Market is now attaching a valaution based on a historical PER of 11.7x. As we can reasonably expect Challenger to grow its NP further by say +20% yoy, to approx. $16.4m in FY11, we can also say Mr Market is now attaching a valuation based on a prospective PER of 9.8x.
Another relevant question: Is a prospective current-year PER of 9.8x too high for Challenger, which already has a well-established, growing business with a proven management, and a solid track record of steady profitability and increasing profits over time?