Best World

[Boon]

@Boon... very busy?

I saw the explanetion in CLSA Bestworld-initiation report
rgds to "not fully appreciated"

attached for your reading.

Track record not fully appreciated
Unlike many direct-selling firms, BW does not require members to make bulk
purchase, thus revenue is not inflated. This minimises risks of inventory
buildup. Importantly, BW has successfully built its product positioning in the
premium skincare segment. The success is evident through the strong
revenue growth, as the product, coupled with successful marketing strategies,
helps penetrate markets in Taiwan and China. The business model is scalable,
enjoys high operating margins, and is consistently free cashflow positive.

There are two statements made in relation to “not fully appreciated”:
 
1) Track record not fully appreciated
2) Investment merits not fully appreciated.
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“Track record not fully appreciated
Unlike many direct-selling firms, BW does not require members to make bulk purchase, thus revenue is not inflated. This minimises risks of inventory buildup. Importantly, BW has successfully built its product positioning in the premium skincare segment. The success is evident through the strong revenue growth, as the product, coupled with successful marketing strategies, helps penetrate markets in Taiwan and China. The business model is scalable, enjoys high operating margins, and is consistently free cash flow positive.”
 
(True, this sub-heading is titled “track record not fully appreciated” – but do the contents explain why the track record is not fully appreciated? No !)
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On page 1:
“Best World (BW) is a direct-selling company that has built a credible track record. Focusing on the premium skin care, it is well established outside of Singapore, and thus, the investment merits are not fully appreciated.”
 
On page 2:
Best World (BW) is a good quality and well-managed direct-selling company. Focusing on premium skin care, it first established itself outside of Singapore, and thus, the investment merits are not fully appreciated. ………”
 
(On why investment merits are not fully appreciated – two versions of reason are given which are not exactly the same - but are the reasons being given valid and logical ? 
Did BWI first establish itself outside of Singapore?
Is BWI not well established in Singapore?)
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