Maxi-Cash Financial Services Corporation

[shanrui_91]

The market close with an amusing traded volume for Maxi-Cash, 85.4 Mils shares

By looking further into the volume distribution.

- approx 23 Mils share are transacted with >100 lots per transaction
- more than 20 Mils share are transacted with 51-100 lots per transaction
- more than 30 Mils share are transacted with 16-50 lots per transaction
- the rest is with less than 16 lots per transaction

Total share in public is 56 Mils share, while volume today is 85.4 Mils share, so logically all public shares are changed hand.

Logically, since the lots/transaction >100 lots have volume of 23 Mils share, insiders (and/or related persons) are selling, and probably Aspial also reducing their holding?

We shall see from the subsequent announcement.

This is not really the case as it is on the assumption that the share is being turnover once. There are traders there that will buy and sell numerous rounds and the lead manager will also attempt to support the price.

On a side note, I was at Clementi earlier in the day and I noticed 3 pawn shops within sights of each other. Maxi-Cash is right beside this traditional pawn shop and the Money Max (which have 21 shops according to the website) is around 20m away. Is pawn broking so lucrative such that all the pawn shops are crammed together? Coincidently, I also noticed that there's a few bubble tea shops in that area within sight of each other.

In terms of price of gold and interest rate, they are pretty similar. I went into Maxi-cash to have a look at the second hand items and was surprised to see that they all look pretty new. I asked the manager and she says that they have all been polished before they are being displayed for sale. I look at the price of gold between old and new and the difference is around $3 per gram for a 24 carat gold ($72.50 and $75.50).

I am not going to call it a 2nd hand dealer anymore. I shall call it a discount shop for those who wish to purchase gold and silver jewellery at a cheaper price. However, it also means that they are being subjected to the price of gold and silver as there will be a time lag from when it is sold to Maxi-cash and when it is sold to the customer. The disconut shop model is perhaps why it enjoy a decent ROE for its resale segment.

There is a pretty good article on Maxi-cash by Investor Central
http://www.investorcentral.org/show_text...xtid=15406

Investor Central has some pretty good articles as the founding idea behind it is "we ask the questions that need to be asked".