Dairy Farm

[snowcap]

Carrefour to exit Singapore market by year-end. A positive for Dairy Farm Singapore? Less competition in the hypermarket (Giant) sector. When Carrefour was contemplating exiting in 2010, I had hoped that Dairy Farm would buy them out. Dunno which is better for Dairy Farm: Carrefour to close completely (less competition), or Carrefour sell out to DF (capture the city centre market).

http://www.todayonline.com/Hotnews/EDC12...y-year-end

(vested)

[godjira1]

should be a positive for DF either way. wasted, I kinda like carrefour...

<vested thru JSH>

[pianist]

any news/urls on carrerfour liquidation advertisement or offer?

[snowcap]

pianist, it appears that Carrefour is not selling, they are just closing. see
http://www.todayonline.com/Hotnews/EDC12...y-year-end

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I like the way Dairy Farm has segmented the market. Cold Storage for higher end produce, SnS for budget conscious shoppers, and Giant as the hypermart selling TVs and clothes to groceries, with 7-11 as convenience store, Guardian as pharmacy/health & beauty. NTUC is a keen competitor and has tried to follow with their Finest (high end) and Xtra (hypermarket) Fairprice Express / Cheers (convenience store) and Unity (pharmacy/health & beauty).

[Musicwhiz]

Dairy Farm already has such high ROE, now that Carrefour is exiting, I guess it may climb even higher?

And the problem with the share price always rising - don't worry too much cos it's an excellent business, so hard to buy it cheap!

[snowcap]

My experience with Dairy Farm over the last 9 years is that there are buying opportunities. Because it is rather illiquid, the price can spike up or plunge down by 5-10% in one or two days. These are excellent buying opportunities or profit taking moments. I always remain vested, and simply add or slice off the peripheral to exploit the Mr market's craziness. If you look at the candlestick chart (horror, yes I confess to using charts in a value investing forum!!) there are such days. I set a trigger alert and just go about the rest of my life. Then when I get an SMS, it's time to go in!

This is not an advise to do anything. Please do your own due diligence. I make mistakes as well. I was waiting at $10.50 for the last 6 months. Waiting for it to drop to $10. Well... I can be patient, I just remember "Doing nothing strikes us as intelligent behaviour"

[valuehunter]

Wondering if forummers have taken a look at walmart. PE-wise, it certainly is a whole lot cheaper, not forgetting the positive fcf the business churns out year after year.

Granted that walmart was trading at obscenely high levels 10 or more years back. However, facts have shown that the earnings have caught up with the price somewhat with PE now around 15 times and forward PE less than that. Question is can the growth continue in the foreseeable business?

With the business being roughly 48% family owned (last time I checked, forummers may want to verify) and bearing in mind that dps has been consistently rising for so many years, it probably is reasonable to believe that management's interest is aligned with minority shareholders. At the very least, the money comes in every quarter!

With Dairy Farm trading at more that 30 times PE, are investors willing to wait more than 30 years to get back the earnings? Or is the growth rate so high? Points to ponder and mull over.

Not intended to induce selling or buying of either counter. Just wondering if Dairy Farm warrants such valuations when compared to its larger peer, bearing in mind that the two companies are not exactly the same, so not exactly a case of comparing apples to apples. Forummers must of course still conduct due diligence on their part.

[Drizzt]

Dairy Farms ROE is double of Walmart, and almost all its competitors.

I think why their better is that they are not in China, which walmart is.

[CityFarmer]

Dairy Farms ROE is double of Walmart, and almost all its competitors.

I think why their better is that they are not in China, which walmart is.

I recalled everybody was expecting China to save the world, with crisis everywhere in US and Europe, not too long ago.

Suddenly it become a forbidden land for investors?

[Drizzt]

no i mean purely from the margins perspective not who they sell to. the big contributors is hongkong and singapore. perhaps they can sell higher margins thats why.