Popular Holdings

[KopiKat]

"tiny cafe within their Popular bookstores starting with one which is located in town area." interesting ideas.
With a bookstore next, will this lower the turnover of customers ?

If that's what they're planning to do, it's not a new idea. I believe Borders had something similar before they closed shop. Or perhaps they plan to do something with their usually empty CD-Rama section? Like drink coffee can listen to free unlimited music??

Come on, is just 44K don't be so mean.
At least they start small.

For a company with NPM = 3% - 6%, every single penny counts! I wonder how much of the $44,224 of Net Assets are in Intangible Assets (since this is a $2 co. and likely a dormant one)?? Some more, such an inauspicious number, sounds more like a curse (44224 = Die-Die-Easy-Easy-Die in Cantonese. Since the father is usually based in HK, he must surely understand their lingo?) being directed at the buyer - Popular Hldgs!

Oh ya, not just $44,224. Another $199,998 is being pumped in, else where to get $$ to start operation? Extract from the same SGX Annc,

Increase of Paid-Up Capital in Epilogue
The Board of Directors of the Company also wishes to announce that the Company has subscribed for additional 199,998 ordinary shares of S$1 each in the share capital of Epilogue for a cash consideration of S$199,998. Subsequent to the subscription, the issued and paid-up capital of Epilogue increased from S$2 to S$200,000.

[corydorus]

I have been moving back and forth from Books to Digital and back to Book then Digital and still back ...
Nevertheless there will be gradual decline and level off somewhere i think.

Is a good thing to keep exploring alternatives that can leverage their existing advantage.

[Mr Nobody]

When video cassettes first appeared, there were some who predicted the death of cinemas. We are still watching movies in cinemas.

[corydorus]

Cinemas innovates and improves their video, sounds, chair, upsell etc .. if they have given up, is a self fulfilling prophecy.

[VestedInterest]

Cinemas innovates and improves their video, sounds, chair, upsell etc .. if they have given up, is a self fulfilling prophecy.

It will take 1 to 2 generations before the books' demise. There are many diehards here who just can't do without books yet. Once the libraries start shutting down down and go completely digital, solar energy powers the ipad, the cost of the iPad comes down, we run out of trees (remember the Lorax) and a whole generation that grew up on iPads, kindles and what have you, we know that the end is near. Meanwhile, Popular would have transformed itself for better or worse...and we would be long gone to bother about it in the first place.

[propertyinvestor]

You all keep talking about their retail buisness. But I tell you that they have a new money spinning buisness under their educational arms which is conduting corporate courses for MNCs! Their Publishing division is also probably of interest to SPH who may buy them up one day now that the Old man has nobodyelse to succeed him.

[Mr Nobody]

Old man has to lelong? ...since he is an eager seller.

[propertyinvestor]

Old man has to lelong? ...since he is an eager seller.

No lah, why need to lelong? SPH is the desperate buyer. They want Popular publishing assets and network badly. Popular also net cash company. Old Man not stupid....but time not on his side.

[KopiKat]

Old man has to lelong? ...since he is an eager seller.

I went to look at SGX Annc for the past 5 years to better understand your 'lelong' comment. A summary of Old Man's transactions,

Buying
1) 17-Mar-08 to 26-May-08 : Buy @ $0.255 to $0.299, Total $912k
2) 31-Oct-08 : Buy @ $0.12 (post rights), Total $12k
3) 29-Jan-09 : Rights @ $0.10, Total $12.5M

Selling
4) 24-Sep-09 to 10-Nov-09 : Sell @ $0.1706 to $0.2004, Total $1.17M

Buying
5) 8-Feb-10 : Rights @ $0.13, Total $14.35M

Selling
6) 23-Mar-10 to 8-Nov-10 : Sell @ $0.155 to $0.171, Total $2.37M
7) 9-Feb-12 : Sell @ $0.18, Total $540

Observations
1) Prior to the 1st Rights Issues on Jan-09, Old Man was buying regularly from the Open Market. That was during a bearish period when STI dropped -49% for FY08. It must have provided good price stability as his purchase price went up steadily from $0.255 to $0.29. He spent $912k here.

2) On Jan-09, Old Man had to come up with $12.5M for the 1st Rights Issues. We started to see him selling in the Open Market from then on. Prices got sold down from $0.2004 to $0.1706 and he raised $1.17M from this selling activities.

3) On Feb-10, Old Man had to come up with another $14.35M for the 2nd Rights Issues. He continued his selling activities at prices from $0.155 to $0.16 with one last small transaction at $0.171. He raised $2.37M here. The market was aborbing his selling well and the price didn't drop much.

4) On 9-Feb-12, one small SELL transaction got done @ $0.18. This may signify that Old Man has standing instruction with his broker to continue selling activities from ~ $0.18.

My Take
The 2 Rights Issues required $26.85M. Not sure how much cash Old Man originally had but I'd think this $26.85M requirement for the rights would be enough to wipe up all his Free Cash and he may even be on OD or collateral loan. From AR2011, I couldn't find any info on his Salary except that it's above $500k. So, I'm more inclined to think that his selling of Popular Shares has more to do with his cash flow rather than current share price being fully valued (since he's an insider and knows the biz better).

Do take note of the latest selling on 9-Feb-12 after a long lull from Nov-10. It could be an indication of more selling which'll cap the share price at $0.18 or even lower if Old Man needs cash again!

[karlmarx]

that's quite an astute observation, kopikat. i hope the old man continues his selling.