Kingsmen Creatives

Seriously, the biggest personal investment regret I have for 2013 (so far!) is not having the courage to buy more Kingsmen shares during the hours and days folllowing the "irregularities announcement". I have always had confidence in the quality of the management of Kingsmen and I failed to consistently apply that thinking when it matterred most, i.e. when the opportunity was greatest. My mistake - I blame no one but myself.

That said, the ensuing investigation is still ongoing - like others, I await the results with interest. And I still believe it is critically important that Messrs Soh and Ong keep a honed focus on reputation enhancement.

Vested

(08-03-2013, 05:57 PM)palantir Wrote:

(07-03-2013, 10:11 AM)CityFarmer Wrote: It seems a wise move to "tikam" during the "fraud"

Congrats to the "tikam" gang which i am happen to be one of them

This is called calculated move

After all this is based on hindsight. Some will say "I should have bought more then"

(08-03-2013, 09:43 PM)RBM Wrote: Seriously, the biggest personal investment regret I have for 2013 (so far!) is not having the courage to buy more Kingsmen shares during the hours and days folllowing the "irregularities announcement". I have always had confidence in the quality of the management of Kingsmen and I failed to consistently apply that thinking when it matterred most, i.e. when the opportunity was greatest. My mistake - I blame no one but myself.

That said, the ensuing investigation is still ongoing - like others, I await the results with interest. And I still believe it is critically important that Messrs Soh and Ong keep a honed focus on reputation enhancement.

Vested

(08-03-2013, 05:57 PM)palantir Wrote:

(07-03-2013, 10:11 AM)CityFarmer Wrote: It seems a wise move to "tikam" during the "fraud"

Congrats to the "tikam" gang which i am happen to be one of them

This is called calculated move

After all this is based on hindsight. Some will say "I should have bought more then"

chillax man....you can't win all the time. haha
a lot of ppl even sold their shares on that day.

Kingsmen hit and closed at a new record high of $0.87 today (13Mar13). It is heartening to note that Kingsmen has consistently out-performed the STI in most the last 24 months and by approx. 45% todate.....
http://finance.yahoo.com/echarts?s=5MZ.S...=undefined;
, and this is before counting the superb $0.04/share in total yearly dividends!

While I do not deny that Kingsmen has a solid, steady business (and also because I am vested therefore making me inherently biased), it is questionable if the business can indeed grow at a pace which justifies forward valuations. There is nothing to suggest that Kingsmen will grow faster than it did in FY 2012, which saw an 11.2% increase in revenues and a 5% increase in NPAT. Even margins for M&E got compressed while order book as at end-Feb 2013 was lower than for end-Feb 2012.

Looking at the last closing price fof $0.87, Kingsmen's yield is a mere 4.6%, while its forward PER is about 9.3x if I assume a similar +5% rise in NPAT to get a forward FY 2013 EPS of 9.39c/share. This is higher than its average PER over the last 3 years of about 7x-8x, and one has to ask if such valuations are justified based on the perceived growth rate of the Company.

Therefore, I am inclined to believe that Kingsmen is a tad over-valued at the current price, if not fairly valued. As usual, I will be keeping a close watch on the business and financial performance of the Company to ensure my investment is still on track to deliver good returns on invested capital (ROIC) and equity (ROE).

Looks like one single huge trade in Kingsmen shares has just been done - 5,700,000 (yes, five point seven million) shares at S$ 0.87 per share. I cannot recall any such single large trade in Kingsmen's recent history. I have no insights on this.

Vested

(14-03-2013, 08:40 AM)RBM Wrote: Looks like one single huge trade in Kingsmen shares has just been done - 5,700,000 (yes, five point seven million) shares at S$ 0.87 per share. I cannot recall any such single large trade in Kingsmen's recent history. I have no insights on this.

Vested

That is almost 3% of Kingsmen total issue share.
Interesting.

Yes that is close to 3% of Kingsmen's total issued share cap (including treasury shares).

I would think it is possible that a SSH may be selling out as he may feel the shares are fully valued at this point, but let's wait and see.

(14-03-2013, 09:23 AM)Musicwhiz Wrote: Yes that is close to 3% of Kingsmen's total issued share cap (including treasury shares).

I would think it is possible that a SSH may be selling out as he may feel the shares are fully valued at this point, but let's wait and see.

If either the buyer and seller is SSH, then there should be an update in SGXNet tomorrow. Let's see.

(vested)

(13-03-2013, 11:36 PM)Musicwhiz Wrote: While I do not deny that Kingsmen has a solid, steady business (and also because I am vested therefore making me inherently biased), it is questionable if the business can indeed grow at a pace which justifies forward valuations. There is nothing to suggest that Kingsmen will grow faster than it did in FY 2012, which saw an 11.2% increase in revenues and a 5% increase in NPAT. Even margins for M&E got compressed while order book as at end-Feb 2013 was lower than for end-Feb 2012.

Looking at the last closing price fof $0.87, Kingsmen's yield is a mere 4.6%, while its forward PER is about 9.3x if I assume a similar +5% rise in NPAT to get a forward FY 2013 EPS of 9.39c/share. This is higher than its average PER over the last 3 years of about 7x-8x, and one has to ask if such valuations are justified based on the perceived growth rate of the Company.

Therefore, I am inclined to believe that Kingsmen is a tad over-valued at the current price, if not fairly valued. As usual, I will be keeping a close watch on the business and financial performance of the Company to ensure my investment is still on track to deliver good returns on invested capital (ROIC) and equity (ROE).

I'm not sure you realise just how many western investors would love to buy a business like this at 9 times. If only they knew it existed.

(14-03-2013, 02:01 PM)sahara Wrote: I'm not sure you realise just how many western investors would love to buy a business like this at 9 times. If only they knew it existed.

Hi!

Would you be able to provide some comps in USA or Europe and their valuations?