> rom CEO Loh is that BT is focusing to improve their operation and set target to achieve 8% net
> profit from currrent 4%
They have said that for more than a year. Not much clarity on how they are going to do this
> Answer by Goerge Quek : I won't sell the company. Infact, over the last couple of year, there are
> many big investors want to buy BT, but he decline them all.
The price offered is not good enough.
> rom CEO Loh is that BT is focusing to improve their operation and set target to achieve 8% net
> profit from currrent 4%
They have said that for more than a year. Not much clarity on how they are going to do this
> Answer by Goerge Quek : I won't sell the company. Infact, over the last couple of year, there are
> many big investors want to buy BT, but he decline them all.
The price offered is not good enough.
Sometime back Motley Fool in Nov 2012 ran a article that Breadtalk is way too expensive diworsification. Valuation stretched - yet stock rise from 59 to 70cts. Nobody took notice! Why would Motley ran a -neg article on a Asia Co.? It was to water down the stock valuation! But instead the stock kept rising since then! I think there is too much competition like Ya koon, Wang Sian etc, but my friend who got nothing else to do with the money and listen to her wife's command that it will never die out of business. Neither will it profit much, in fact every annual report its margin got worse!! The last report, its margin erosion was very clear, yet stock pushed past 80cts.
How come Motley is interest in the talk on such a small cap equity Co? It continue to issue comments after Thai Minor buy, saying again that valuation is whimsical and does change BT valuation with Minor buy.
The question Shldrs all like to know is how to lift profit margin! It will get worse from here or lift up!
Ask my broker, he said ppl like to buy what they know/understand. So if not real estate, what else in equity?
1Q results just out.....
http://info.sgx.com/webcoranncatth.nsf/V...5002A2996/$file/BTG_1Q13_SGXNet.pdf?openelement [result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...5002B450B/$file/BTG_1Q13_Press_Release.pdf?openelement [press release]
Despite the rather impressive YOY Revenue growth and ths being a cash-based business, I really think as a group BreakTalk is a terrible earner! It is worrying that new/replacement capex on PPEs continues to be much larger than recurrent FCF. I think BreakTalk's debt level - which increased by another 12.7m since 31Dec12, to $109.1m as at 31Mar13 - should be a cause for concern even for a cash-based business, as the group continues to rely quite heavily on funding from trade creditors to finance business growth! I have a feeling that quite many of the group’s network (including franchise) of 627 Bakery outlets, 50 Food Atria and 35 Restaurants as at 31 March 2013, are non-performing and may end up as 'dud' fixed assets and cash drainers if not successfully and timely re-positioned (which would likely require additional capex).
What do fellow forumers think?
(08-05-2013, 08:31 PM)dydx Wrote: [ -> ]What do fellow forumers think?
I think they have attended a course in Hyflux 101.
please, may i ask humbly - there will only be + fcf if capex is lower than the net operating cash flow, am i rite?
i think it is. Only at times capex is not so easily accounted for. My 2 cents.
(08-05-2013, 11:42 PM)felixleong Wrote: [ -> ]results looks good
Wow.......The profit margin is really really really low!!! O_0"
Less than 2%??!!?!!?
I am not sure what is so attractive about breadtalk.
High PE
Low NTA per share
Pathetic dividend
Tons of debt
Cash is going out faster than it is coming in
But, I am impress by those who had plonked down their $$$ when it is around 50cts.
Noted that Third party minority interest takes up about 21% of the net profit. Rather significant.
hi yeokiwi
i agree with ur funda points.
my friend who goes by tech analysis told me v v strong rebound will happen at 45-48c.
i can't see a stock much beyond my own fa. thus i ignored him.
hehe. he turned out to be rite. but i think he did not buy much himself though he was dead sure of his ta.