Super Group

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(04-04-2012, 10:56 AM)shanrui_91 Wrote: seemed like it's more of the Myammar speculation...

This was mentioned in CIMB's initiation report as well.
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(03-04-2012, 04:20 PM)ValueBeliever Wrote: Wow this Super group really up breaking new high. Viz Branz also following. Valuation of both Co. will get a boost to the sector....

At this point, Super is still cheap if measured against topline growth of 25%. It can easily hit 12cts EPS, that will be a low PEG ratio of 0.78.

I suspect, the F&B sector is trading at the low end of PEG ratio and if re-rate due to commodities price fall, we could see better valuation ahead.... or is it a take over party involve....

Remember Nestle deal on, PE of 25 and yet its PEG ratio 0.8...

Price spikes after a G.O is quite common, in my opinion. When Kim Eng was taken over by May Bank, price of UOB Kayhian shot up. Similarly, when Parkway Holdings were privatised, price of RMG and Thomson Medical also increased fairly significantly.
Super group result 10 May stirring excitement! If they really show that the fall in commodities is having a positive impact on bottomline, which most analyst in SPore has a sharp eye on this estimate and SUper gp price looks controlled - we can expect a big buy up may be 5cts adjustment possible?
Why trading halt today? Selling out? The Te family had wanted to sell to an undisclosed party a few years back.
I believe the halt is just due to release of their 1Q results tomorrow. They did that the last time round (release of 2011 full year results).
Everything looks good on this one until i found these things i cannot tahan.

"Ms Elaine Teo Sze Hwee, whose remuneration exceeds S$150,000 during the year ended 31 December 2011, is the daughter of Mr Teo Kee Bock and Madam Te Lay Hoon. Mr Darren Teo Junxiang is the son of Mr Teo Kee Bock and Madam Te Lay Hoon."

$500,000 & above
Teo Kee Bock
Te Kok Chiew

$250,000 - $499,000
Te Lay Hoon

Below $250,000
Te Lay Guat

Key Executives:

Below $250,000
Elaine Teo Sze Hwee
Darren Teo Junxiang

I guess Teos is the husband family and Tes is the wife family, in the end is a 1 big family.

Should it raise any concern even though the business is doing very well?
(06-09-2012, 09:12 PM)hongonn Wrote: I guess Teos is the husband family and Tes is the wife family, in the end is a 1 big family.

Should it raise any concern even though the business is doing very well?

One key risk associated with family-managed companies is that they can be (ab)used to create jobs for family members regardless of their ability to contribute.

With professionally-managed companies, the danger is that the management will take enormous risks and blow it up, since they only have salary/bonus at risk, rather than equity in the company. However they are generally very capable if appropriately restrained.

With family-managed companies, the risk is that the owner-managers may overpay themselves and also employ and overpay family members. This nepotism can also discourage talented outsiders from joining the company, creating a shortage of truly capable staff. On the other hand, the family has significant equity tied up in the business, so generally they will be more cautious and avoid taking undue risk - they want to protect the golden goose.

I suppose the lay analogy would be between a chauffeur-driven car and an owner-driven car. The chauffeur may be more skilled at driving, but he may well be less careful than the owner, since it's not his car. So the chauffeur may get you to your destination quicker, but is also more likely to have an accident.
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I am alright the sole business owner runs the show, who also own a large portion of shares of the company. His/her family should be left out from the business.

But this case seems to be a bit extreme who pull in the entire family. Husband and wife family member everyone takes part comes into play a role.
Where is the check and balance? If the patriarch (or some domineering family member in a key appt) makes a decision, would the other family members disagree if it is their professional view to disagree? Or would the family dynamic suppress their disapproval? I suppose in an open trusting relationship among the family members, with no ego by the leader(s) it can work and the leader is willing to be told he's wrong, ackowledging someone else is smarter or has better ideas than him.
To me doesnt matter if the Teos are all in it with the high remuneration. The same goes to who rule the country really well and reward themselves handsomely base on performance basis. From a 20+ cents share to 2+ is no easy feat. How many Spore Co. can count on the stability of our small market to grow year after year. May be having GSH onboard helps?

Super taught me something that brand value is the REAL value. In time of crisis never give up hope on PROVEN management team. If they continue to execute well, the EPS will push the stock to higher valuation automatically.

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