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The management has been destroying shareholder value for years. In the current FY, another 49 cents per share loss was recorded.
It has been 3 full financial years that Isetan is making wide losses possibly due to e commerce and that was even before COVID struck. With more discount stores and clothing stores like Don Don Ki and Uniqlo appearing, if I were the management, I would have thrown in the towel and close all the stores except Scotts. Then hopefully I can offload the Wisma stake.
Based on its declared book value on Wisma of 28.7 mil vs the expected market value for $310 mil by comparing against Starhill Global valuation of its Wisma stake, the real NAV of the company is about $9.40 per share. Personally, I think the management will continue on its value destruction path and I would expect its eventual NAV to be about $6.0. However, if the company continues on its antics for another 20 more years, the company could be a zero value investment
Once the Mgmt wises up, it is a double bagger.
The company is better off dead than trying to fight in the brick and mortar scene of Singapore especially in the heartland malls where don don ki is comng up.
<On my watchlist, but am apprehensive to invest because of the stubborn and lousy management>
It has been 3 full financial years that Isetan is making wide losses possibly due to e commerce and that was even before COVID struck. With more discount stores and clothing stores like Don Don Ki and Uniqlo appearing, if I were the management, I would have thrown in the towel and close all the stores except Scotts. Then hopefully I can offload the Wisma stake.
Based on its declared book value on Wisma of 28.7 mil vs the expected market value for $310 mil by comparing against Starhill Global valuation of its Wisma stake, the real NAV of the company is about $9.40 per share. Personally, I think the management will continue on its value destruction path and I would expect its eventual NAV to be about $6.0. However, if the company continues on its antics for another 20 more years, the company could be a zero value investment
Once the Mgmt wises up, it is a double bagger.
The company is better off dead than trying to fight in the brick and mortar scene of Singapore especially in the heartland malls where don don ki is comng up.
<On my watchlist, but am apprehensive to invest because of the stubborn and lousy management>