Challenger Technologies

Challenger should seriously consider employing kingsmen's services. Yes, the services are expensive but once the brand is deemed high class, the profit will soar..haha.

A solid company with over 10 years of growth in revenues and earnings
30% ROE and net cash position
selling for only 10 times earnings

why is the market valuing challenger so low?

(12-05-2014, 12:10 PM)cif5000 Wrote:

(12-05-2014, 10:57 AM)CityFarmer Wrote:

(12-05-2014, 10:46 AM)specuvestor Wrote: I think what is puzzling is that they are putting their name Challenger to the brand Valore. Can't they achieve their objective by making it a stand alone brand and most consumers aren't wiser? Who would know that Asrock is a lower end product of Asustek?

The Valore branding is promoted without Challenger brand. We may see Valore products are sold in Challenger stores, but the product brand is separated.

I take a look at a Valore product, the brand label is Valore, rather than Valore, Challenger, right?

(vested)

Valore
By Challenger

[Image: valore-AMK.jpg]

[Image: Valore-Funan.jpg]

OK, If it is the Valore Store, than I agree. The Valore brand is different concept.

Valore means Value which means value product range market segment. Certainly not high end category. The colors on the brand tell me fashionable designs.

(12-05-2014, 10:30 AM)ValueMaster Wrote: fire sale is here, 50 cents while stocks last

437 lots sell off, valued at $220K+ Contract Party CP is House 20, Philip Securities.
It's a same seller off-loading at 50cts per share, another buyer is also programming the buy-in Q at 50 cts per share at 1 lot, so that the price will not drop below 50 cts.
Seller A & Buyer B agreeing on 50 cts per share. That's strange, something like a stabilizing manager at work here!
Conflict of interest maybe? or syndicates at play, have to monitor the trading volumes over the next few trading days to summarise this off-load value, why 50 cts?
Need to check also if it's shortist cover their naked shorts..



Maybe seller needs the cash urgently, or Challenger going to have some negative news soon? (rights issue/lawsuits over burnt powerpacks? - dun quote me for this! )

*Vested at 50 cts*

(12-05-2014, 12:30 PM)yeokiwi Wrote: Challenger should seriously consider employing kingsmen's services. Yes, the services are expensive but once the brand is deemed high class, the profit will soar..haha.

superficially yes, product-wise, quality of product still matters most. Maybe M&A with Popular to form a "Young People" or "Youths" IT SUPERMARKET with textbooks and such?!!
M&A with OSIM to form luxury IT Store?

(12-05-2014, 12:10 PM)cif5000 Wrote:

(12-05-2014, 10:57 AM)CityFarmer Wrote:

(12-05-2014, 10:46 AM)specuvestor Wrote: I think what is puzzling is that they are putting their name Challenger to the brand Valore. Can't they achieve their objective by making it a stand alone brand and most consumers aren't wiser? Who would know that Asrock is a lower end product of Asustek?

The Valore branding is promoted without Challenger brand..............

(vested)

Valore
By Challenger

[Image: valore-AMK.jpg]

[Image: Valore-Funan.jpg]

Hi cif,

I bought their powerbank and there is no mention of Challenger on their logo or anywhere on their powerbank.

One think to note is that they are following Apple's "Designed in California" concept. For Valore, it is imprinted "Designed in Singapore"

(vested)

The retail industry in Singapore is challenging......High rental costs, high labour costs....

Why pay close to 3x NTA or 10-15PE for a challenging sector?

The company needs a game changer.....a killer product or overseas expansion where they replicate their 'success' story in Singapore......

Valore does not seem to be the 'killer' product and their overseas expansion is kinda not successful.

So how is it going to increase profit?

opening more stores? oversaturated now?
lower cost? higher rental cost and labour cost so kinda hard
higher sales price? would consumer bite?

not vested

I hope M&A will be choosen for real long term growth, meantime, this short term growth can still bring in positive benefits.

(12-05-2014, 12:30 PM)yeokiwi Wrote: Challenger should seriously consider employing kingsmen's services. Yes, the services are expensive but once the brand is deemed high class, the profit will soar..haha.

It would be a good stradegy for the long term.

For the time being, being a new player (with no rep), it would be wiser for the company to enter the market at the low end. They do not have to make quality like your Rolls-Royce but they can make decent products that are attractive.

How Valore will enter the high end market, that is a whole different ball game.

If you look at the automotive case studies, Toyoto did not start out with the high end market. They started at the lower end, "copying" others. When they wanted to venture into the high end, they used Lexus as a brand to enter that market segment.

I am actually quite pleased at how Challenger handled the recall. If they denied it, it would just be bad rep. Acknowledging that their product has a defect is the first step in pleasing the customer. The next is to offer a solution to customers who had bought the defective product.

One other thing to note is that Valore is moving away from products that are "fun" to products that are attractive. Something that I am very pleased with. The willingness to adopt to change once they see that their "fun" products are not doing well.

Challenger is in the midst of change. Let us see in the coming years how they handle the change.

(vested)