Harry's Holdings

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The "exposure" is different. For Soup Restaurant and Breadtalk, they are exposed to customer from the entire day's operations. Select group is catering but should have a larger frequency as well.

Contrary to that, Harry's peak is in its night operations. On the weekdays, they target the working adults - those after-office hours and probably others who are taking a break during their night shift. That's why most of their outlets are in the CBD area. If you visit their outlets during the day, you can see they attract a relatively smaller crowd for its lunch hours.

That said, I still think the GO is good for those who had purchased at the recent prices. Wouldn't be much gain for those who had purchased at its IPO price of 22c
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The "exposure" is different. For Soup Restaurant and Breadtalk, they are exposed to customer from the entire day's operations. Select group is catering but should have a larger frequency as well.

Contrary to that, Harry's peak is in its night operations. On the weekdays, they target the working adults - those after-office hours and probably others who are taking a break during their night shift. That's why most of their outlets are in the CBD area. If you visit their outlets during the day, you can see they attract a relatively smaller crowd for its lunch hours.

That said, I still think the GO is good for those who had purchased at the recent prices. Wouldn't be much gain for those who had purchased at its IPO price of 22c
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Wow...50% premium over its last closing price of $0.15. Congrats to all shareholders...
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Wow...50% premium over its last closing price of $0.15. Congrats to all shareholders...
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(12-11-2012, 07:14 PM)Some-one Wrote: Wow...50% premium over its last closing price of $0.15. Congrats to all shareholders...

This really shows that the SGX market greatly undervalues some stocks. Another current example is Superior Multi-Packaging. The fact that a PE firm or a trade investor can take a listed company private at a huge premium and can still make money says a lot about this market inefficiency situation, which also provides good opportunities for value investors.
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(12-11-2012, 07:14 PM)Some-one Wrote: Wow...50% premium over its last closing price of $0.15. Congrats to all shareholders...

This really shows that the SGX market greatly undervalues some stocks. Another current example is Superior Multi-Packaging. The fact that a PE firm or a trade investor can take a listed company private at a huge premium and can still make money says a lot about this market inefficiency situation, which also provides good opportunities for value investors.
Reply
S$22M is a cheap price to delist for a growing brand like Harry's, with all the operations mapped out.

The owner gets ~$10M from his 40+% stake, and the fees for next 3 years.

The PE investor gets a reputable brand to fast track. Indians are great drinkers, so this is really a good deal for the PE players. I will not be surprised to see the PE players list it on mumbai stock exchange for 10 times this valuation in a few years
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S$22M is a cheap price to delist for a growing brand like Harry's, with all the operations mapped out.

The owner gets ~$10M from his 40+% stake, and the fees for next 3 years.

The PE investor gets a reputable brand to fast track. Indians are great drinkers, so this is really a good deal for the PE players. I will not be surprised to see the PE players list it on mumbai stock exchange for 10 times this valuation in a few years
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has the IFA been appointed and report arrived?
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has the IFA been appointed and report arrived?
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The circular by the IDA - ASIASONS WFG CAPITAL PTE. LTD. is out and dispatched to shareholders.
[ S O U R C E ]

[ Circular to Shareholders ]

Without reading the circular, I can probably guess the usual regurgitation by the IFA about 'opportunity for shareholders to cash out', 'sell at market if you can get a better price' and 'hold if you still believe in the fundamental of the companies'

I accepted the offer without waiting for the usual useless and waste-of-money BS from the IFA that is needed to cover the backside of the independent directors.

So here's the IFA's advise to independent directors:

Quote:“Accordingly, after taking into account the above factors, we are of the opinion as of the date hereof that the fi nancial terms of the Offer, on balance, are fair and reasonable and accordingly, advise the Independent Directors to recommend Shareholders to ACCEPT the Offer if they are unable to obtain a higher price than the Offer Price (net of related expenses) in the open market.

Hey... I think I can be an IFA liao. Sleepy
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The circular by the IDA - ASIASONS WFG CAPITAL PTE. LTD. is out and dispatched to shareholders.
[ S O U R C E ]

[ Circular to Shareholders ]

Without reading the circular, I can probably guess the usual regurgitation by the IFA about 'opportunity for shareholders to cash out', 'sell at market if you can get a better price' and 'hold if you still believe in the fundamental of the companies'

I accepted the offer without waiting for the usual useless and waste-of-money BS from the IFA that is needed to cover the backside of the independent directors.

So here's the IFA's advise to independent directors:

Quote:“Accordingly, after taking into account the above factors, we are of the opinion as of the date hereof that the fi nancial terms of the Offer, on balance, are fair and reasonable and accordingly, advise the Independent Directors to recommend Shareholders to ACCEPT the Offer if they are unable to obtain a higher price than the Offer Price (net of related expenses) in the open market.

Hey... I think I can be an IFA liao. Sleepy
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it is plain clear to me that the ifa reple was 'ACCEPT'
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it is plain clear to me that the ifa reple was 'ACCEPT'
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A business that is unable to turn a profit isn't worth much, regardless of how popular it's brand may be.

If the business model is not sustainable, more growth will not equate to more profits. And often leads to loss.

I am surprised someone is willing to buy harrys at such a high price. Perhaps the PE buyers are adept at stream lining f&b operations and improving efficiency.

There are plenty of f&b businesses out there just like Harry's -- good brand marketing, thin profit margin, high operating costs. People look at their revenue growth and think they may be the next McDonald's or the like. But they are eventually disappointed. One by one, they are selling their businesses. The next one to sell out may be George quek.
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A business that is unable to turn a profit isn't worth much, regardless of how popular it's brand may be.

If the business model is not sustainable, more growth will not equate to more profits. And often leads to loss.

I am surprised someone is willing to buy harrys at such a high price. Perhaps the PE buyers are adept at stream lining f&b operations and improving efficiency.

There are plenty of f&b businesses out there just like Harry's -- good brand marketing, thin profit margin, high operating costs. People look at their revenue growth and think they may be the next McDonald's or the like. But they are eventually disappointed. One by one, they are selling their businesses. The next one to sell out may be George quek.
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