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Wasn't Harry's supposed to report out its Q1 2011 Financials today? I'm interested to see if Harry's margins are on the up from their unsustainable 2010FY levels and if they have been able to get a better grip on their cost bases. Surely the trend of 2010 can not continue without some corrective action. On very thin trading, the stock closed at S$ 0.13 today - I believe this is the counter's lowest since the January IPO.
I'm also keen to see how the Hotel is doing. I checked the website the other day. Rooms in the S$ 220-240 p.n. range - given its only 22 rooms, I would hope that Harry's are reaping significant synergies from the on-site bar and eatery.
I have this vision of young Mohan, chewed pencil lodged behind his ear, working away on the financials in his Boat Quay bar right now .........
RBM, Retired Botanic MatSalleh
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Thanks Lonewolf - me got that one wrong. I had read somewhere that they were reporting out on June 13th but that is obviously erroneous information. We will have to wait until August, I guess, to get a picture of what is going on.
RBM, Retired Botanic MatSalleh
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31-07-2011, 11:09 PM
(This post was last modified: 01-08-2011, 11:37 AM by RBM.)
Thank you for sharing Harry's July 2011 presentation charts dydx,
I'm awaiting the 1H 2011 results, which I presume have to be announced before mid August (ref. lonewolf's message earlier in this thread). I'm keen to see how much margin Harry's has recently been making out of its ~ S$ 4 Million per month cash-in and if its cost bases are coming down.
If this was a S$ 130 Million or S$ 1.3 Billion market cap company I'd be seriously worried about how thinly spread it is across various different businesses, with little in the way of clear synergies - bars, restaurants, a club, kid's play-thing (for CEO's wife), small hotel, outside catering etc. etc. Harry's also aims to use IPO proceeds for forays elsewhere in SE Asia (as confirmed again by a chart in the presentation pack).
As it is, Harry's is a ~ S$ 13 Million market cap company, assuming the most recently traded share price of S$ 0.139. For this reason, I'm not currently vested. I'm waiting until the share price descends into the single digits cents range - down from its January 2011 IPO subscription price of S$ 0.22 per share - and to see some demonstrable evidence that the Board and Management a) is going to get much more focused and b) shows a determination to bring costs to heel.
RBM, Retired Botanic MatSalleh
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01-08-2011, 08:46 AM
(This post was last modified: 01-08-2011, 10:32 AM by dydx.)
With only 95.0m issued shares, at the last done price of $0.139, Harry's current market cap. now stands at $13.2m. This is below its current NAV of approx. $15.0m (adjusted for the $5.28m gross IPO proceeds, but before accounting for any earnings in 1H-FY11).
As Harry's businesses as a group now has an estimated annual revenue of at least $45.0m, and should be generating approx. $4.0m in aftertax FCF (before accounting for new capex and start-up costs of new outlets) yearly, there are good indications that the counter is already grossly under-priced.
If Harry's share price ever falls to single-digit, I am quite sure more than one MatSalleh or, for that matter, many more others, will be tempted to buy up even the entire company!
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Hi guys,
Thanks for the heads-up on Harry's. I am also interested in this Company and its business, and am monitoring their operational and financial performance. Although I don't really patronize Harry's, I do note that their presence has been entrenched here in Singapore, from Esplanade to Boat Quay. As to whether they have a loyal customer base, I am not so sure.
Still, it will be interesting to see how things pan out for them.
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01-08-2011, 12:39 PM
(This post was last modified: 01-08-2011, 12:39 PM by RBM.)
Purely by coincidence ............ Harry's stock seems to be subject to unusually high turnover - by its standards - this morning. Share price is now down to S$ 0.12 per unit in trade of > 250,000 shares.
One to watch indeed.
RBM, Retired Botanic MatSalleh
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the rental and staff cost must drop substantially before it can really make a meaningful profit.
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Somehow, I still can't quite convince myself of the attractiveness of such an industry, much less as an investment option, despite seeing all this interest here. 7 pages worth of comments!
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