ValueMax Group

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#11
(22-10-2013, 04:17 PM)opmi Wrote: Why pay out dividend when capital is valued at 3X by Mr Market?

Because if no dividend paid, the valuation might drop.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#11
(22-10-2013, 04:17 PM)opmi Wrote: Why pay out dividend when capital is valued at 3X by Mr Market?

Because if no dividend paid, the valuation might drop.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#12
(22-10-2013, 04:00 PM)CityFarmer Wrote: The PB (post IPO, adjusted with estimated proceeds) is 1.5 (NTA of 20 cents, with IPO price of 30 cents) for MaxiCash. Refer to page 46

The PB (post IPO, adjusted with estimated proceeds) is 1.9 (NAV of 16 cents, with IPO price of 30 cents) for MoneyMax. Refer to page 27.

Now the NAV of both pawnshops is about 15c, so in fact both values are depreciating but the share prices are traded far above the IPO price? To me it seems the pawnshops are not good for long-term investment, but peoples will value the IPO by using the other 2 as benchmark, which is currently traded at 3 x PB. So to match the other 2, Valuemax could run up to 80c. Sound a bit unrealistic but who knows, I am going to waste my 2 dollar for a press at ATM, again this is not for long-term investment in my opinion.
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#12
(22-10-2013, 04:00 PM)CityFarmer Wrote: The PB (post IPO, adjusted with estimated proceeds) is 1.5 (NTA of 20 cents, with IPO price of 30 cents) for MaxiCash. Refer to page 46

The PB (post IPO, adjusted with estimated proceeds) is 1.9 (NAV of 16 cents, with IPO price of 30 cents) for MoneyMax. Refer to page 27.

Now the NAV of both pawnshops is about 15c, so in fact both values are depreciating but the share prices are traded far above the IPO price? To me it seems the pawnshops are not good for long-term investment, but peoples will value the IPO by using the other 2 as benchmark, which is currently traded at 3 x PB. So to match the other 2, Valuemax could run up to 80c. Sound a bit unrealistic but who knows, I am going to waste my 2 dollar for a press at ATM, again this is not for long-term investment in my opinion.
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#13
Go to AMK (next to AMK Hub). The streets a lot of pawnshops.

Pawnshops market will suffer from the 'tragedy of the commons' when everyone expands with capital thrown at them.

I think the customer base is limited. Dont see the younger ones use pawnshops. Just use CC Balance Transfer or Cash Advance
can already. No shame involved.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#13
Go to AMK (next to AMK Hub). The streets a lot of pawnshops.

Pawnshops market will suffer from the 'tragedy of the commons' when everyone expands with capital thrown at them.

I think the customer base is limited. Dont see the younger ones use pawnshops. Just use CC Balance Transfer or Cash Advance
can already. No shame involved.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Reply
#14
When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel
http://wealthbuch.blogspot.com
-- Where I blog about matters on finances
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#14
When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel
http://wealthbuch.blogspot.com
-- Where I blog about matters on finances
Reply
#15
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.
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#15
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.
Reply
#16
(25-10-2013, 10:44 AM)Clement Wrote:
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.

The maximum interest charged is 1.5% per month, 9% per 6 months or 18% per year.

The tenure of ticket is usually 6 months i.e. 9% interest on loan amount. Interest is collected upon renewal, thus the interest is not compounded.

----
Pawnbrokers Act, 16.—(1) A pawnbroker may take profit on a loan on a pledge at a rate not exceeding that specified in the Second Schedule.

Second Schedule stated a maximum of 1 1/ 2% per month on the amount of the loan.
Ref: http://statutes.agc.gov.sg/aol/search/di...0#pr16-ps1-.
-----
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#16
(25-10-2013, 10:44 AM)Clement Wrote:
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.

The maximum interest charged is 1.5% per month, 9% per 6 months or 18% per year.

The tenure of ticket is usually 6 months i.e. 9% interest on loan amount. Interest is collected upon renewal, thus the interest is not compounded.

----
Pawnbrokers Act, 16.—(1) A pawnbroker may take profit on a loan on a pledge at a rate not exceeding that specified in the Second Schedule.

Second Schedule stated a maximum of 1 1/ 2% per month on the amount of the loan.
Ref: http://statutes.agc.gov.sg/aol/search/di...0#pr16-ps1-.
-----
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#17
(25-10-2013, 11:05 AM)CityFarmer Wrote:
(25-10-2013, 10:44 AM)Clement Wrote:
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.

The maximum interest charged is 1.5% per month, 9% per 6 months or 18% per year.

The tenure of ticket is usually 6 months i.e. 9% interest on loan amount. Interest is collected upon renewal, thus the interest is not compounded.

----
Pawnbrokers Act, 16.—(1) A pawnbroker may take profit on a loan on a pledge at a rate not exceeding that specified in the Second Schedule.

Second Schedule stated a maximum of 1 1/ 2% per month on the amount of the loan.
Ref: http://statutes.agc.gov.sg/aol/search/di...0#pr16-ps1-.
-----

Ah.. Thanks for the correction. Sorry everyone for the silly mistake. I mixed up the tenure of the loan for the interest rates when recalling off the top of my head.
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#17
(25-10-2013, 11:05 AM)CityFarmer Wrote:
(25-10-2013, 10:44 AM)Clement Wrote:
(25-10-2013, 10:27 AM)momoeagle Wrote: When gold prices go down, what will happen to their inventory?
And when interest rates go up, what will happen to demand for their services?

AngelAngelAngel

Hi, pawnshops are governed by pawnbroker regulations and do not benefit from increase in the value of pledges except for greater margin of safety for the loans. If the prices of the pledges decrease they will face recoverability issues. The interest they charge is also capped (at 6% I think). If interest rates rises, their net interest margin decline. I think demand for their services will not be affected by much.

The maximum interest charged is 1.5% per month, 9% per 6 months or 18% per year.

The tenure of ticket is usually 6 months i.e. 9% interest on loan amount. Interest is collected upon renewal, thus the interest is not compounded.

----
Pawnbrokers Act, 16.—(1) A pawnbroker may take profit on a loan on a pledge at a rate not exceeding that specified in the Second Schedule.

Second Schedule stated a maximum of 1 1/ 2% per month on the amount of the loan.
Ref: http://statutes.agc.gov.sg/aol/search/di...0#pr16-ps1-.
-----

Ah.. Thanks for the correction. Sorry everyone for the silly mistake. I mixed up the tenure of the loan for the interest rates when recalling off the top of my head.
Reply
#18
If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?
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#18
If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?
Reply
#19
(25-10-2013, 01:26 PM)valuebuddies Wrote: If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?

Anyone can bid for items at the auctions. Some may want to buy for their own use, others to resell, others to melt down.

Pawnshops normally use a low loan-to-value ratio to protect themselves against depreciation of the collateral whether it's gold, a watch or something else.
---
I do not give stock tips. So please do not ask, because you shall not receive.
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#19
(25-10-2013, 01:26 PM)valuebuddies Wrote: If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?

Anyone can bid for items at the auctions. Some may want to buy for their own use, others to resell, others to melt down.

Pawnshops normally use a low loan-to-value ratio to protect themselves against depreciation of the collateral whether it's gold, a watch or something else.
---
I do not give stock tips. So please do not ask, because you shall not receive.
Reply
#20
(25-10-2013, 02:46 PM)d.o.g. Wrote:
(25-10-2013, 01:26 PM)valuebuddies Wrote: If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?

Anyone can bid for items at the auctions. Some may want to buy for their own use, others to resell, others to melt down.

Pawnshops normally use a low loan-to-value ratio to protect themselves against depreciation of the collateral whether it's gold, a watch or something else.

On top of that, pawnbrokers usually have secondhand dealer licenses, or approval to sell secondhand goods in their pawnshops. That allow them to resell goods from auctions.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#20
(25-10-2013, 02:46 PM)d.o.g. Wrote:
(25-10-2013, 01:26 PM)valuebuddies Wrote: If I remember correctly, the pawnbrokers will auction away the jewelries if the owners didn't go back for redemption after certain period of time. And when it come to auction, goldsmiths would bid and melt them for re-production, so if gold price come down, it does affect the bidding prices.

Can someone help to clarify?

Anyone can bid for items at the auctions. Some may want to buy for their own use, others to resell, others to melt down.

Pawnshops normally use a low loan-to-value ratio to protect themselves against depreciation of the collateral whether it's gold, a watch or something else.

On top of that, pawnbrokers usually have secondhand dealer licenses, or approval to sell secondhand goods in their pawnshops. That allow them to resell goods from auctions.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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