The Hour Glass

The Hour Glass ($1.31) - It hit a high of $1.325 today before closing at $1.31....This is a worthy $2.62 before the 1 for 1 split....... Incredible......

(15-03-2012, 11:33 PM)crabcrab Wrote: The Hour Glass ($1.31) - It hit a high of $1.325 today before closing at $1.31....This is a worthy $2.62 before the 1 for 1 split....... Incredible......

Wow for those who have kept till now - double + dividend....Do you sell before dividend and then pick it up? Earnings have been showing up in luxury brand.... Like car watches are gifts or pleasure that is easier to maintain and show off!!

The Hour Glass ($1.335) - Another record high for THG share price today...... Not much sellers in the mkt-depth queue list..... Likely up trend to continue......

(15-03-2012, 01:44 PM)dydx Wrote: Finally, at the current price level of $1.30 Mr Market is now willing to price THG at a premium over its NAV/share, which I have previously projected as approx. $1.26 as at 31Mar12. But with a well-established and positioned business backed by a proven management team able to deliver steady business growth and superior recurrent profits, should the premium over NAV/share be just a little over 3%? Shouldn't Mr Market be willing to price the THG share based on a premium over its NAV/share which also takes into consideration its future earnings or EPS of say at least the next 1 year?

Based on the strong results for the 1st 9 months till 31Dec11.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement
THG is poised to deliver a record NP of close to $55.0m and an EPS of approx. $0.234 for full-year FY12 (ending 31Mar12), and there are good reasons to be optimistic that FY13 (ending 31mar13) would be another reasonably good year.

Let's see how much of the projected EPS for FY13 would Mr Market be prepared to price into THG's share price going forward?

Without any fanfare, THG has quietly and steadily advanced a total of another $0.07, or 5.4%, on last Thursday (15Mar), Friday (16Mar), and this morning (19Mar, Monday), to reach $1.37 now (1500hrs).

Assuming THG's NAV/share would reach approx. $1.26 as at 31Mar12, Mr Market is now prepared to pay a $0.11 premium (approx. 8.7%) over current NAV/share, for all of THG's future profits. While a rational Mr Market should not over-price even a high-quality business or stock without a valid reason - e.g. a positive economic outlook for the business coupled with a positive investment outlook for the overall stock market - he should be willing to stretch a little to pay for a business' future profits - especially if he can assess the profits coming in within a reasonable period of time are quite certain, shouldn't he?

Swiss watchmaking in February 2012
Exports still set fair

The trend remained very buoyant in February, with scant regard for an unfavourable base effect. The value of watch exports rose 19.7% compared to February 2011, to a level of 1.6 billion francs. The normalization of growth expected this year is probably still around the corner.

Gold watches made the strongest showing and contributed in no small measure to the general upturn. Bimetallic timepieces also registered growth in excess of 20%, while steel fell back slightly, recording a two-digit increase nonetheless. Steel however had a major positive effect on the volume of timepieces exported and generated a large proportion of growth.
Wristwatches by materials

The positive trend was more marked higher up the price range. Watches costing more than 3,000 francs (export price) saw their value increase by 26.8%, well ahead of all other segments. Timepieces costing less than 200 francs accounted for the larger part of volumes and registered an increase of 5.1%.

Hong Kong once again picked up the pace with a particularly robust performance in February. The United States showed a positive result, albeit on a more modest scale. In third position, China also recorded a strong upturn. European markets were more mixed: France remained stable, while Germany showed a marked improvement and Italy lost ground.

Source: FHS

For luxury timepieces, S'pore is the one to watch

Lee Xin En
The Straits Times
Publication Date : 18-04-2012

It has no luxury watch brands and is not known for making high-end jewellery.

Yet Singapore has managed to become the top global destination for Chinese shoppers keen to buy such items.

They spent at least S$265 million (US$212 million) on watches and jewellery during visits to the Republic between last April and this February.

That is considerably more than in Switzerland - traditionally regarded as the home of luxury timepieces - which came in only seventh, with a total spend of S$54 million (US$43 million).

The figures were released by Global Blue, a company that offers tax refunds to tourists. They showed that Chinese shoppers who used its service in Singapore each forked out an average of S$8,757 (US$7,000). Louis Vuitton was their favourite brand, followed by Chanel and Gucci.

For all items, not just watches and jewellery, France was top with S$736 million spent, followed by Singapore with S$501 million.

Stephan Ritzmann, group chief executive of home-grown retailer Sincere Fine Watches, said he was not at all surprised the Republic had emerged as the top destination for luxury timepieces.

He said: "Singapore is the fifth-largest importer of Swiss watches in the world, and therefore has a high level of sophistication and knowledge of luxury watches. Also, customer service here is second to none and Chinese shoppers here understand that there is a commitment to authenticity here."

Ritzmann revealed that tourists account for nearly half of Sincere's total business in Singapore, with Chinese shoppers the biggest contributors. Most of them are businessmen, who buy watches costing up to several hundred thousand dollars.

Charles Chan, managing director of high-end retailer Larry Jewelry, said he was surprised that the Republic had surged to the top. However, he added: "Singapore could be very strong as a destination for Chinese shoppers because of the combination of having a variety of brands renowned for both watches and jewellery here. In Switzerland, it's mainly watches, so it's not as attractive."

Chan said his Chinese customers were "very daring" in their spending habits. "They go for the largest and best quality stones in the shop, and it's not rare to see customers spending more than S$100,000 each time."

Sincere has also noticed that its Chinese clients are becoming more sophisticated, and paying attention to brands rather than price.

Ritzmann said: "In the past two years, we have found that Chinese shoppers are becoming increasingly savvy in their consumption of luxury products, and are willing to explore a greater variety of brands."

Singapore will continue to attract Chinese shoppers, said Manelik Sfez, Global Blue vice-president of partner and corporate marketing. He said its appeal is due to factors such as its proximity to China, a lack of visa issues and a safe environment. Plus, "you have the best from everywhere in the world in a small place. That's a major advantage".

Sfez said Singaporean retailers should understand Chinese consumers' increasing sophistication and cater to their tastes accordingly. He said: "Their move along the curve of discernment is extremely fast, much faster than the Japanese. The sophistication which Japanese shoppers took 10 years to achieve, the Chinese are taking two to four. They can discern style and design."

To gain even more appeal, he advised luxury retailers in Singapore to market their stores here in China, and to use "emotional power".

He said: "For Chinese shoppers, shopping in the flagship store of Chanel in Paris has a strong emotional factor, because of its history and heritage. Retailers here need to establish the same emotional power, even though they probably cannot go down the heritage route."

He added: "Nevertheless, Singapore has more than compensated with its large variety of goods, and cultural and geographical proximity."

(vested)

Hour Glass pair settle legal dispute out of court

High-profile former The Hour Glass couple, Henry Tay and Jannie Chan, have settled a legal dispute out of court, after an intervention from a family friend.

Ms Chan told The Straits Times that they did not want their family affairs to be dragged through the courts.

Dr Tay, 67, obtained an injunction in December last year preventing Ms Chan, 65, from signing cheques for a family company, TYC Investment.

TYC Investment, set up in 1979 by the couple, was set up to hold the shares of The Hour Glass on behalf of the family.

Dr Tay also asked the court to order his former wife to return more than $3 million to TYC Investment.

Ms Chan told The Straits Times: "This is family. What I've built and invested in is for my family and for their future. It would become embarrassing for everyone if I were to put my affidavit in, and it becomes a story for everyone. Do I really want to do that?

"The business always comes second. When we do well in the business, we benefit the family, but if we do not have love, compassion and unity in the family, then what's the point?"

They were married for 41 years, but were divorced in 2010. They have three children, Audrey, 38, Michael, 36, and Sabrina, 31.

Their first-born, Michelle, died at the age of nine from cerebral palsy, and Sabrina, was born a rubella child with a hole in the heart, without ears and with a cleft palate.

Ms Chan, who was well known for years by her married name Jannie Tay, explained to The Straits Times that TYC Investment was set up when their children were still young, as a tool for estate planning.

She also said she was so private in her divorce, that even her children and mother did not know about it.

Their divorce only came to light because it was mentioned in the court papers and became headline news in January 2012.

"I just wanted to do my own thing, focus on my new business which is something I believe in", said Ms Chan.

"My mother did not want me to get a divorce. She took it very badly when I first mentioned it to her, but at my age, I thought I should have some control after working so hard," she added.

Plush had carried a report on February 5, 2012, about their divorce that was seen as a long time coming according to friends and associates of the former couple who spoke to The Straits Times.

For many years, the couple had led mostly separate lives, often attending social events alone and pursuing different interests.

There was suspicion in the air when Ms Chan changed her name but the couple never publicly confirmed the divorce.

The Straits Times reported that they were a classic case of 'opposites attract'.

Those interviewed said that it was always clear that Ms Chan and Dr Tay had personalities that clashed each other's.

They described him as stoic, silent and decisive, while she is outspoken, vivacious, flexible, and known for her love of dancing.

While their opposing personalities seemed to be an advantage for their business, it wasn't exactly so in their personal life.

The Hour Glass is now a leading watch retailer in the region with a market capitalisation of $263.2 million.

It has 10 boutiques in Singapore, including the Rolex Centre at Ion Orchard and has a presence in countries like Malaysia, Australia and Japan.

Today, Ms Chan continues to serve as executive vice-chairman.

The couple's son, Michael, 36, and his uncle, managing director Kenny Chan, now manage the day-to-day business of the company. Ms Chan continues to give advice to her son on managing the business.

Ms Chan is now focused on her new business, Hypha Holdings, set up in 2005, under the Save Our Planet Investments which focuses on biotechnology, wellness and the environment.

She also started the Save Our Planet Foundation, which handles reforestation and environmental projects.

Swiss watchmaking in March 2012
Steady growth continues

March brought to a close another very good first quarter for Swiss watch exports. Their monthly value stood at 1.6 billion francs, 15.2% more than in March 2011. The smoothed variation over twelve months thus remained essentially unchanged. The first quarter recorded exports valued at 4.6 billion francs, an increase of 17.0%.

Gold watches contributed significantly to this result, posting an increase of more than 25% both in value and volume terms. The upturn for steel timepieces lagged slightly behind overall value, while bimetallic watches produced an average result. The total number of timepieces exported remained very close to that of March 2011, with an increase in some materials being offset by a decline in other products.

Exports of wristwatches priced at under 3,000 francs (export price) recorded virtually the same result as last year: identical in volume terms but with a slight increase in value (+1.7%). Timepieces costing more than 3,000 francs were clear frontrunners with rates of increase in excess of 20%.

Unusually, the key markets of Hong Kong and China recorded below-average growth. In second position, the United States however recorded one of the highest increases among major destinations. Germany continued to make strong progress and Japan posted the highest increase on the Asian continent. France, Italy and the United Arab Emirates attained roughly the same levels as in March 2011.

Export to Singapore continues with a double digit growth

Source:FHS

Total watch export to Singapore for Mar 2011-Mar 2012 is 21% higher than from Mar 2010-Mar 2011. If The Hour Glass's Singapore segment can show 30% and above increase in sale for the upcoming annual report, that will be a good sign that they have gained some market share.

(15-03-2012, 03:37 PM)ValueBeliever Wrote: I have cortina but not THG. Not sure how high both counters can climb. Both are extremely undervalued base on earnings and dividend (more so for Cortina). They can afford to give more dividend. My only concern is with a these Reits taking over property and raising rent and hopefully IR continue to bring in customers that love watches. THG sale is mostly Spore?, whereas for Cortina - they have been smart to move to Taiwan.

Sporean by nature are traders and these two counters represent reputation of SPore in the retail trade. Wait for pull back to put some CPF money in THG. CPF money interest is too low and riskiest if not compensated for inflation. At least invest some in dividend yielding Co. that have strong earnings prove safer.

ME LIKE THE REST OF YOU GUYS HERE - Change camp after trading in and out and lossing a great deal of patience & $$$ decided to move here and exchange value investing. Not so easy but at least they are steadily supported by dividend yield beating banks... I think the market will in time appreciate this kind of Co.

How to opt for scrip dividend - is it better than taking cash?

yeah, welcome to the value-camp. Leave trading to the chartists. buffett has a track record as a value investor. I havent heard of anyone becoming a billionaire by reading graphs and charts and making big money consistently using technical analysis