Pertama Holdings (Harvey Norman)

I was wondering if you guys have taken a look at Pertama.

My analysis here >>


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It is basically an unexciting company but with good values.
Consistent dividend payment? High probability.
Double in share price? Unlikely due to its low ROE(typically less than 10%..).

I was quite surprised that they gave 4cts dividend for FY10. I thought it was more likely an one off event.

it should be one off.no quesetion about it.

Management definitely looks solid here. I think its case of good management working in a unfavorable industry. There are numerous competitors (Courts, Best Denki etc), not to mention the smaller shops around. That being said, they have done a remarkable job in the past two years (maybe lessons learnt from the 2001 - 2002 period..?) considering the economical climate.

Definitely worth looking into.

(Not vested)

It's barrier to entry isn't that high right?

(31-12-2010, 04:31 PM)momoeagle Wrote: It's barrier to entry isn't that high right?

There aren't many companies in SGX with a good barrier to entry.
But, that does not mean it is not worth to plough some money into them.

A lousy business with a good management is still worth a bet.
Especially, if they have lotsa of cash.

They are in this lousy business for many years and probably have enough experiences to keep it going for some more years.

Lastly,they give pretty good dividend.

Quote:There aren't many companies in SGX with a good barrier to entry.
But, that does not mean it is not worth to plough some money into them.

A lousy business with a good management is still worth a bet.
Especially, if they have lotsa of cash.

They are in this lousy business for many years and probably have enough experiences to keep it going for some more years.

Lastly,they give pretty good dividend.

Good ones, I do not know how good is the management, but they certainly have lot of leverage from being an associate of the Giant Harvey Normal Australia when come to source for its merchandise.

Lot of cash i think 30 cents/share and good history of dividend business is not very good for Electronics, Computers, Furniture retailers in Singapore but they have a plan to expand big this year in Malaysia.

Interestingly, the executive director Angelo sold 4 Mil shares to Harvey Normal Australia recently.

I suspect that Harvey Normal may want to buy out other partner in Pertama for its to have full control and expand regionally to Indonesia and Vietnam for instance and if this happens you may reap in very good profit.

Alternatively, you can look for Ossia Intermational which has a bit smaller than 50% stake in Pertama.

Share trading is extremely thin, very hard to get some share at reasonable price.

Pertama trading halt..
Another delisting offer?
Most likely since the major shareholder is holding on to almost 80% of the total shares.

Swee......

Sh**. i think i missed another goody again!

(31-12-2010, 07:07 PM)yeokiwi Wrote: There aren't many companies in SGX with a good barrier to entry.

Tummysick companies excluded?