Challenger Technologies

Lately I been to a few Valore/Challenger stores, seems like the crowd is not as many as before. I hope this is not a new trend. Maybe the market is pricing in a drop in business?

very very old stuff but indeed a very insightful read

So comparing with courts, do you think challenger done better?


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Challenger products are over-price OEMs that can be find everywhere. SLS sells at least 20% cheaper for most of their things, they wont survive in a few years time.

(01-06-2014, 11:14 AM)franko.yank Wrote: Challenger products are over-price OEMs that can be find everywhere. SLS sells at least 20% cheaper for most of their things, they wont survive in a few years time.

But they have survived since the 1980s and as long as SLS were around. So what makes u think challenger wont survive? Those days i was still a student and my parents are not rich. I tend to buy comp. stuff from SLS. After cheated a few times at SLS and now that i have purchasing power, i dont bother to buy from SLS anymore. I get stuff from popular, courts, harvey or challenger.

Hi bibi, amazon is rising.

SLS, Courts, Harvey Norman, Challenger has all been around for over a decade.
Retail landscape doesn't really move that fast.

Among the 2 listed companies Courts and Challenger, its obvious that Challenger is a better run company with 30% ROE and net cash position. Courts is over 50% gearing and has a low teen ROE.

Courts primary makes profit through credit, a very risky business.

I think Challenger can make around 4.2 cents of earnings this year, against a stock price of 50 cents that about 12 times earnings. Which makes Challenger pretty fairly valued. Courts trades at under 10 times earnings and close to 1 time book value, looks cheap however the business model is risky so I shall avoid.

Challenger is opening a total of about 7 new stores this year, shall see if they are able to continue growing revenues and net profits in the coming years.

(01-06-2014, 12:02 PM)jianjian Wrote: Hi bibi, amazon is rising.

Yup amazon is a threat, but not only to challenger but all other retailers too.

However investors still seem very bullish on retail malls, singaporeans have too much disposable income.

What do the average singaporeans do on weekends? Go to their nearby mall for movie, shopping and eating ^^

Lastly on the negative side, I feel that Challenger would likely not be able to maintain its high ROE of 30%+
Due to the competitive landscape, its ROE might slowly come down to 20-25% instead, however that's still a lot better than Courts.

4 years worth of discussion on challenger in valuebuddies and we still see the similar negative outlook of challenger by some members.


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