Global Yellow Pages

Not sure anyone notice announcement after market close last friday,
27 JUN Goi Seng Hui has put in 5.5 million to get 115,107,000 rights issue via oregold...

Looks like he made money from yamada green one round, now using the money to profit from GYP...

Oregold Announcement

However this company will start looking very attractive once the recurring income from coffee shops is added in. Unfortunately from what i read, coffee price is very high and those coffee place like starbucks are getting a bit of a squeeze from increasing costs.

GYP owns Yamada which is also trading at big discount to NAV but then again its an S-chip...

Anyone here have any financial report/number for Gloria Jean's Coffee? Googled but can't find any.

I also wonder what is going to happen to ABR who have a joint venture/franchised Gloria Jean's Coffee?

Below is part of the statement from the Chairman of ABR from their AR:

We were very pleased to have been able to enter into another joint venture recently with Palate Group Pte Ltd. This joint venture, All Best Foods Pte Ltd, brings in a partner to combine our experience and resources and to grow a few our brands. Together the joint venture partners have agreed to an initial paid-up capital of S$8 million. The joint venture started operations in February 2013 and includes Tip Top Curry Puffs, Gloria Jean’s Coffees, Oishi Japanese Pizza and Yogen Früz. We expect the joint venture to become another key contributor by FY2014.

(04-07-2014, 09:19 AM)axt Wrote: Anyone here have any financial report/number for Gloria Jean's Coffee? Googled but can't find any.

I also wonder what is going to happen to ABR who have a joint venture/franchised Gloria Jean's Coffee?

Below is part of the statement from the Chairman of ABR from their AR:

We were very pleased to have been able to enter into another joint venture recently with Palate Group Pte Ltd. This joint venture, All Best Foods Pte Ltd, brings in a partner to combine our experience and resources and to grow a few our brands. Together the joint venture partners have agreed to an initial paid-up capital of S$8 million. The joint venture started operations in February 2013 and includes Tip Top Curry Puffs, Gloria Jean’s Coffees, Oishi Japanese Pizza and Yogen Früz. We expect the joint venture to become another key contributor by FY2014.

The deal to purchase the Gloria Jeans chain did not go through.
Its a pity.

Since the rights was done at 0.05, i am still holding instead of selling at current price of 0.051

http://infopub.sgx.com/Apps?A=COW_CorpAn...sition.pdf

(vested)

(04-07-2014, 12:41 PM)orangetea Wrote:

(04-07-2014, 09:19 AM)axt Wrote: Anyone here have any financial report/number for Gloria Jean's Coffee? Googled but can't find any.

I also wonder what is going to happen to ABR who have a joint venture/franchised Gloria Jean's Coffee?

Below is part of the statement from the Chairman of ABR from their AR:

We were very pleased to have been able to enter into another joint venture recently with Palate Group Pte Ltd. This joint venture, All Best Foods Pte Ltd, brings in a partner to combine our experience and resources and to grow a few our brands. Together the joint venture partners have agreed to an initial paid-up capital of S$8 million. The joint venture started operations in February 2013 and includes Tip Top Curry Puffs, Gloria Jean’s Coffees, Oishi Japanese Pizza and Yogen Früz. We expect the joint venture to become another key contributor by FY2014.

The deal to purchase the Gloria Jeans chain did not go through.
Its a pity.

Since the rights was done at 0.05, i am still holding instead of selling at current price of 0.051

http://infopub.sgx.com/Apps?A=COW_CorpAn...sition.pdf

(vested)

Yes its a pity. The letter is vague as to why it didn't go through. Wanted more money???

It will be interesting to see what other acquisition they have in mind.

Sam goi will convert the warrant and cash out. After seeing the recent deals he has made I am not impressed at all.

I think his pattern is to do some private deal with the company owners that gives him lotsa shares and pump in some of his money, only to cash out after pushing the share price up, often doubling his return. Whether the company does well business wise is of no concern to him.

So buying the warrant at same price as him and sell off after he has pump this share to $0.1 whereby he will convert his warrants and cash out.

(04-07-2014, 05:22 PM)BlueKelah Wrote: Sam goi will convert the warrant and cash out. After seeing the recent deals he has made I am not impressed at all.

I think his pattern is to do some private deal with the company owners that gives him lotsa shares and pump in some of his money, only to cash out after pushing the share price up, often doubling his return. Whether the company does well business wise is of no concern to him.

So buying the warrant at same price as him and sell off after he has pump this share to $0.1 whereby he will convert his warrants and cash out.

The next question is 狗不理 subscription of global yellow pages shares at 7 cents.. will it proceed? If not , will it affect the share price? A risk I think

This counter is looking pretty interesting.
Since losing the Gloria Jeans deal, which in a way shows management's prudence (lost some money in the process), the share price has dipped below 5 cents.

NAV= 7 cents per share
Cash= ~3 cents per share
Market price= 4.7 cents

The company however is in a net loss position but I think this will reverse once their earnings from Yamada fully kicks in.

They can do a lot with their cash hoard and hopefully they will. They're going for Wendy's Supa Sundae, an old Australian/NZ company, selling ice cream, ice cream cakes and sundaes http://www.wendys.com.au/index.php. It's smaller than GJC, therefore more room for growth, especially in hot and humid Asia. While competition would be just as keen, there are no equivalents such as Starbucks, Coffee Bean and Tea Leaves, Spinelli, TCC, etc. Their main competitors in Singapore- Gelare, Anderson's, Udders, Ben and Jerry, etc. , each between 5- 8 outlets. Sizing up the competition- http://www.ladyironchef.com/2010/01/best...singapore/. But their sights are set on the big 'C'- China.
It is interesting to note too that Sam Goi, the man with the golden investment fingers is invested in this company (as alluded to previously in this thread). This company is undergoing a major makeover, from the business of phone directories (sunset business) to the more exciting food business. Though I'm not sure about the boat transport business which they also have a foot in (btw this has been profitable so far).
Of course, am not sure about the quality of the Management team. A wrong decision on where to put their cash would set back the company back by a couple of million dollars.

(Vested)

Yellow Pages has about 51M worth of intangible assets which in my view will be written off further. Scrolling through the AR14, I don't think the trademarks and IP of the brands in GYP are worth 51M, probably about 15M. Lets say an impairment of 35M is done, NAV is about 5.9 cents

Secondly with the 61M of cash, GYP should consider clearing up it 30M of debts, use 12M to purchase Wendy's trademark and use the rest for expansion of the new outlets. This will eliminate finance cost which eats up 12% of the cashflow generated from Ops. FCF yield is about 4% of current price, which isn't that great. Net cash is about 1.5 cents ( will prefer if this is 50% of its market cap).

Lastly, breaking into the China market for ice-cream will be hard. Baskin Robbins has a strong presence in North Asia (China, S. Korea, Japan) and I don't think Wendy's Sundae will be able to break into that easily. It will be better to expand in SEA where Baskin Robbins is weaker.

(06-09-2014, 02:05 PM)CY09 Wrote: Yellow Pages has about 51M worth of intangible assets which in my view will be written off further. Scrolling through the AR14, I don't think the trademarks and IP of the brands in GYP are worth 51M, probably about 15M. Lets say an impairment of 35M is done, NAV is about 5.9 cents

Secondly with the 61M of cash, GYP should consider clearing up it 30M of debts, use 12M to purchase Wendy's trademark and use the rest for expansion of the new outlets. This will eliminate finance cost which eats up 12% of the cashflow generated from Ops. FCF yield is about 4% of current price, which isn't that great. Net cash is about 1.5 cents ( will prefer if this is 50% of its market cap).

Lastly, breaking into the China market for ice-cream will be hard. Baskin Robbins has a strong presence in North Asia (China, S. Korea, Japan) and I don't think Wendy's Sundae will be able to break into that easily. It will be better to expand in SEA where Baskin Robbins is weaker.

Thanks for your analysis. Yes, intangibles work out to about 3 cents per share and if it is totally impaired, will cause the NAV to be around 4 cents per share. This is not terribly far from the current market price of the share.

Debt should be pared down only if the company has nothing better to do with their cash in the near future. Otherwise some debt is good as the coy seeks higher returns; we know that GYP is actively seeking out investments at the moment. The finance cost appears high precisely because their earnings are low, at least for the moment.

Just curious, how did you calculate the FCF yield? Shouldn't it be a negative yield for this coy? I think FCF yield may not be the best metric to measure the future performance of a turnaround company looking to deploy capital extensively in the year ahead.

This stock demands a lot of patience and, no doubt, some risk taking. But I guess this is part and parcel of investing.

I could be wrong on this one, I concede. Hence caveat emptor!

My use of FCF calculation is a bit different as I ignore WC changes in cashflow but i subtract taxes and interest expense. Additionally i screen out under the "investing activities", what are the recurring items and which are the one-off events.

Using the recent full FY, its 4,804 - 276 - 2,488- 458- 515 + 12 = 1,079
Subsequently dividing by the 681755 shares ( i did not use the 1.7Bil figure), 0.156 cents per share, thus this divided by 4.6 cents = 3.5%

If the 1.7 Billion shares were used, FCF per share is 0.062 cents per share, thus FCF yield is about 1.3%. However, I believe if they use proceeds from the share dilution exercie wisely, GYP can maintain FCF yield of approx 3.5%