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Ok I am getting a bit kpo here.
The company said, there is a decrease of $550k due to fewer Lamborghini models sold. 13 compared to 15 last year. So 2 Lamborghini cost only $550K???. From LTS website, the basic cost (ie before dealer's profit) of a Lamborghini is close to $1mil.
Where have I got wrong?
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(27-05-2015, 10:36 AM)egghead Wrote: Casualty of the new ARF scheme...
New?
Isnt this tiered ARF scheme in force since Mar/Apr 2013?
http://transport.asiaone.com/news/wheels...car-market
There are no good stocks. Stocks are only good when they go up after you bought them.
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Well, it sure didn't feel like the scheme is two years old...the right word is perhaps "revised ARF scheme"
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(27-05-2015, 12:18 PM)egghead Wrote: Well, it sure didn't feel like the scheme is two years old...the right word is perhaps "revised ARF scheme"
If i am a shareholder, my next qn to the management will be:
This revised ARF scheme has been in force for 2 years. What steps have the company taken to soften the impact on profit?
Knowing this government regulation is forced upon them, there is not much they can do, my qn is mainly to gauge the pro-activeness of the management more than anything else.
There are no good stocks. Stocks are only good when they go up after you bought them.
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I fail to understand why would its CEO be willing to buy back more shares of the loss making company at 5 times book value.
Dealership retailing of super cars in Singapore is a tough business, with v high fixed cost so markup has to be high to compensate for the low sales volume. But not that many buyers are willing to pay the v high markups and disproportionately high taxes, especially with competition from the parallel importers.
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A founding CEO's personal nett worth is based on the share price x no. of shares he owns.
Usually banks would offer such ppl credit facilities backed by the shares he holds.
A falling share price may result in margin calls.
Therefore.. It is in everyone's interest to maintain the share price at a high level, regardless of the performance of the company.
Take salary.. To buy back shares.. In the end.. Guess who are the losers.
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