Maxi-Cash Financial Services Corporation

[CityFarmer]

> material cost

What is included in material cost in a pawnshop??? Didn't read the AR or dig deep into the company.

They take items from customers at a discount.

Do they buy new items and sell it?

The material cost is contributed by pre-owned jewellery and watches business, rather than pawnshop business.

In the pre-owned jewellery and watches business, the sale is the revenue, and the acquired cost is the material cost, or COGS

In the pawnshop business, the interest income is accounted as revenue.

[InvestArk]

Cityfarmer guess you're right on.

SINGAPORE: Pawnbroking chain MoneyMax Financial Services is expected to net proceeds of S$14.4 million via an initial public offering (IPO) for a Catalist listing.

The IPO will see 53.8 million new shares on offer at 30 cents per share, of which two million offer shares will be available to the public.

MoneyMax said they plan to use the proceeds to open new outlets as well as for working capital.

The chain, which is linked to Soo Kee Group, opened its first outlet in 2008 and has since grown to 27 outlets islandwide.

The IPO will close at noon on July 31.

Trading of MoneyMax's shares is expected to start on August 2.

- CNA/fa

[brattzz]

this is may not meant good for the society at large... :O
when demand for pawning services are high...

[CityFarmer]

this is may not meant good for the society at large... :O
when demand for pawning services are high...

I have a different view on pawning business.

I had read books and articles on micro-financing (or micro-banking) around the world, and the helps on the poor and needy. It is definitely a good service both economically and ethically.

Pawing is an old business and works similar as micro-financing. It is around even before banking concept is available in China and US. It helped businessmen for their cash flow issues, families with momentary financial distresses, start-up capitals for small businesses and etc.

Even in modern era today, I am still hearing small business owners using pawning as "bridging loan" for cash flow, a fast and reliable service with a reasonable cost.

(not vested on any pawning business)

[hyom]

this is may not meant good for the society at large... :O
when demand for pawning services are high...

I think both brattzz and CityFarmer are correct. In 2008 during the Wall-street crisis, one group of stocks keep hitting year highs in the US market. This group was the pawn-brokers. Pawn-brokers thrive when the poor are doing poorly. Pawn-brokers make their money from the financially-distressed. Just check with any pawn-broker.

However, who can the financially-distressed turn to in order to raise money during troubled times? Certainly not bankers who take back their umbrellas when the sky starts raining. This is where the pawn-brokers come in.

Unfortunately, the pawn-broking shops that I see appearing in the neighborhood amid prosperity (GDP growth, property and stocks hitting year highs) is a serious sign of social inequality. Economic prosperity is benefiting mainly the rich at the expense of the lower-income who is suffering from higher cost of living caused by the growth. This is worrisome for Singapore society.

[Stocker]

The poor work longer hours and even harder to survive, the rich get richer through appreciation of asset values.

[opmi]

Need to lock in the assets when prices are high. If not, back to sq 1 when mkt downcycle.

Quit while u ahead....hahaha.

[brattzz]

Need to lock in the assets when prices are high. If not, back to sq 1 when mkt downcycle.

Quit while u ahead....hahaha.

if assets are unique and difficult to replace, its best to further enhance it's value, eg, old buildings-refunishments..etc..

why quit when you can stay ahead?!

[CityFarmer]

this is may not meant good for the society at large... :O
when demand for pawning services are high...

I think both brattzz and CityFarmer are correct. In 2008 during the Wall-street crisis, one group of stocks keep hitting year highs in the US market. This group was the pawn-brokers. Pawn-brokers thrive when the poor are doing poorly. Pawn-brokers make their money from the financially-distressed. Just check with any pawn-broker.

However, who can the financially-distressed turn to in order to raise money during troubled times? Certainly not bankers who take back their umbrellas when the sky starts raining. This is where the pawn-brokers come in.

Unfortunately, the pawn-broking shops that I see appearing in the neighborhood amid prosperity (GDP growth, property and stocks hitting year highs) is a serious sign of social inequality. Economic prosperity is benefiting mainly the rich at the expense of the lower-income who is suffering from higher cost of living caused by the growth. This is worrisome for Singapore society.

IMO pawn shops didn't contribute to current social inequality. It makes "legal loan" service equally accessible to all. Banks doesn't have the same accessibility. So pawn shop actually "improve" on social inequality. :D

[KopiKat]

this is may not meant good for the society at large... :O
when demand for pawning services are high...

I think both brattzz and CityFarmer are correct. In 2008 during the Wall-street crisis, one group of stocks keep hitting year highs in the US market. This group was the pawn-brokers. Pawn-brokers thrive when the poor are doing poorly. Pawn-brokers make their money from the financially-distressed. Just check with any pawn-broker.

However, who can the financially-distressed turn to in order to raise money during troubled times? Certainly not bankers who take back their umbrellas when the sky starts raining. This is where the pawn-brokers come in.

Unfortunately, the pawn-broking shops that I see appearing in the neighborhood amid prosperity (GDP growth, property and stocks hitting year highs) is a serious sign of social inequality. Economic prosperity is benefiting mainly the rich at the expense of the lower-income who is suffering from higher cost of living caused by the growth. This is worrisome for Singapore society.

IMO pawn shops didn't contribute to current social inequality. It makes "legal loan" service equally accessible to all. Banks doesn't have the same accessibility. So pawn shop actually "improve" on social inequality.

I won't be very surprised if both of you are correct ie. One group of customers are using Pawn Shops as a means of micro-financing. They could be running small businesses eg. Hawker stall, Pasar Malam stall,.. to bigger shop keepers. Another group of customers could be those who uses it for managing their personal Cash Flows and could be those in between jobs or those who'd over-spent (could also be due to gambling habits). I'm curious which group forms the majority of the customers... Perhaps, can search for some studies / research papers? Or in the IPO prospectuses?