Viz Branz

[RBM]

Thank you for this dydx - very clear.

It will be interesting to see how Viz Branz share price evolves over the coming trading session. One other thing strikes me about this stock ............ the feud between dad and son - the two largest shareholders - hasn't really harmed the share price.

If the buyer of 11 Million Shares isn't a Viz Branz Director then we may never know who bought them - that amount of shares is way below the 5% threshold. The buyer may have sold down some yesterday. It will be interesting to review the Top 20 shareholders when the Annual Report is published - although I well realise that only gives a snap-shot at one point in time.

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[freedom]

to trade 11 million illiquid Viz Branz bought @0.39, it is insane. the selling will drive the share price to ground.

we can reasonably guess that the buyer of 11 million shares should not aim for short term.

[Musicwhiz]

OCBC's analyst actually devoted time to writing an update report on Viz Branz today commenting that the past two-day rally was speculative; but that one should consider taking profits.

Wow, this really shows up the true colours of brokerages. Basically, they love to encourage you to churn your portfolio!

[ValueBeliever]

Musicwhiz,

I m just starting on Value investing. How much has viz Branz compounded over the years just on dividend payment?

If stock split included - wow, I think not far from Super group?

[dydx]

While yesterday's (14Mar12) intra-day up-and-down price movement within a $0.125 range was indeed very sharp, it reflects the individual and overall actions by some participants - likely speculators. I suspect whoever buying big-time in the last few market-days (from 8Mar12) and pushing the price upwards, decided to stop his buying just before 1000 hours yesterday morning. As a result, from that point onwards those short-term 'long' speculators who followed the price up decided to bail out one after another - most of them who bought the day or 2 before should still have made some money - bringing the price spiralling downwards to close the day at $0.43, down $0.025 from the previous day's closing price at $0.455.

But the facts remain, (1) someone of substance started the buying on 8Mar (Thursday, last week) - the first 'XD' date - by buying most of the 1661 lots transacted mostly at $0.355 on the day, and (2) the active buying continued in the next 3 market-days (9Mar, 12Mar and 13Mar) and culminated on 13Mar, and on that day a massive 11.0m shares were crossed at $0.39 in one single-transaction. This perhaps had fired up the sharp price movement upwards all way to the intra-day high of $0.535 the next day (14Mar, yesterday), before the sharp price correction set in soon after 1000 hours.

Based on yesterday's closing price at $0.43, Viz Branz's market cap. now stands at $152.7m, and using $18.6m as a conservative estimate for this FY12's NP, Mr Market is now attaching a current-year PER of approx. 8.2x, which is quite modest.

Viz Branz's share prce managed to stabilise on last Thursday (15Mar) and Friday (16Mar), and has held staeady this morning (19Mar, Monday).

Based on last Friday's closing price of $0.465, Viz Branz's market cap. now stands at $165.08m, and using a conservative $18.6m as estimate for this FY12's NP, Mr Market is now pegging a higher - but still modest - current-year PER of approx. 8.9x on Viz Branz. More upside? Well, since Viz Branz has a growing business and therefore should make more profits over time, Mr Market ought to apply a higher current-year PER, or start forecasting the expected higher future profits and use them as a basis for valuation.

[dydx]

Just checked my bank account and noted a very nice credit from Viz Branz's 'upsized' $0.02/share 3rd Interim dividend. Can't be happier!

I think it is relevant to note that international coffee prices have continued to trend downwards - the current downward trend actually first started in May11, after coffee prices hit record levels in Apr11 (as reflected by the highest ICO composite indicator price of 231.24 U.S. cents per pound recorded) - losing another 11.4% since 1Mar12, as indicated by the latest (as at 22Mar12) ICO composite indicator price of 158.98 U.S. cents per pound.....
http://www.ico.org/prices/pr.htm
Such a big drop in coffee prices has to be a boon to Viz Branz and others selling coffee products to the consumer and institutional catering markets, including into the forseeable future.

Meanwhile, Viz Branz's share price has stabilised further, as indicated by the narrow traded price range of $0.44 - $0.48 this week (19Mar to 23Mar12) and yesterday's (23Mar12, Friday) closing price at $0.465, backed by a steady but higher-than-average daily volume traded. Since 1Mar12, Viz Branz has recorded a total volume traded in excess of 28.5m shares, or approx. 8.05% of the total outstanding 355.0m issued shares. This unusually high volume traded has to indicate something?!

[Dodo]

Just checked my bank account and noted a very nice credit from Viz Branz's 'upsized' $0.02/share 3rd Interim dividend. Can't be happier!

I think it is relevant to note that international coffee prices have continued to trend downwards - the current downward trend actually first started in May11, after coffee prices hit record levels in Apr11 (as reflected by the highest ICO composite indicator price of 231.24 U.S. cents per pound recorded) - losing another 11.4% since 1Mar12, as indicated by the latest (as at 22Mar12) ICO composite indicator price of 158.98 U.S. cents per pound.....
http://www.ico.org/prices/pr.htm
Such a big drop in coffee prices has to be a boon to Viz Branz and others selling coffee products to the consumer and institutional catering markets, including into the forseeable future.

Meanwhile, Viz Branz's share price has stabilised further, as indicated by the narrow traded price range of $0.44 - $0.48 this week (19Mar to 23Mar12) and yesterday's (23Mar12, Friday) closing price at $0.465, backed by a steady but higher-than-average daily volume traded. Since 1Mar12, Viz Branz has recorded a total volume traded in excess of 28.5m shares, or approx. 8.05% of the total outstanding 355.0m issued shares. This unusually high volume traded has to indicate something?!

Don't see any announcement of changes in shareholdings by either Senior Chng or Junior Chng though. A third force? Or using "friends" to warehouse?? Who bought the 11m shares??!!

[ValueBeliever]

That right a couple of days ago,
I was also wondering if fund could hv bought into it like sarin ?
Apparently, the vol has picked up n it is not without qstn
From shldr?

Why no sgx qstn n no annmt? Takg it private thru friends or unfriendly party
Super gang watching

[Dodo]

Highly unlikely a fund would buy in on it's own in this case, given the high concentration of shareholdings in the father and son's hands. For a fund to come in, I think it must be working with either side.

All in all, very unusual trading pattern...

[Dodo]

Latest announcement:VIZ BRANZ LIMITED
("Company") Incorporated in the Republic of Singapore Company Registration No. 199401631K
(A) ALLEGATIONS AND COMPLAINT BY MR CHNG KHOON PENG ("CKP")
(B) RESPONSES BY THE COMPANY
© CAUTION
(A) Allegations and Complaint by CKP
The Company wishes to inform shareholders that it has today received notification from CKP's counsel, Rodyk & Davidson LLP, that CKP, an Executive Director of the Company, has lodged a complaint with the Commercial Affairs Department ("CAD") relating to allegations against Mr Ben Chng Beng Beng ("CBB"), being the Group's Managing Director and Deputy Chairman ("Rodyk Letter").
The Company had also received on 20 March 2012 a letter from CKP addressed to the Enforcement Department, Risk Management & Regulation Group, Singapore Exchange Limited ("Exchange"), and copied to the Company and its company secretary and statutory auditors relating to these allegations ("CKP Letter").
The Rodyk Letter refers to the CKP Letter, and states that CKP has filed a complaint on the matter with CAD.
The CKP Letter had alleged, amongst others, "hitherto unknown, private and irregular payment arrangement" between CBB and two Myanmar distributors of the Group, whereby "monies due to the Company from the Myanmar distributors were paid into a third party account operated by CBB from which payment was only thereafter made from the third party account to the Company".
The CKP Letter had also alleged that the board of directors of the Company ("Board") condoned CBB’s actions, and CKP "cannot trust the Board to act independently of CBB, nor can it be relied upon to take any action adverse to CBB".
(B) Responses by the Company
These allegations have already been looked into and carefully considered previously by the Company and its audit committee. The conclusion reached was that there was no merit in these allegations. Thereafter, the Company had met and explained to CKP the conclusion and made available for inspection the relevant documents. The Company believes that by the end of the meeting, the Company had addressed CKP’s concerns. The Company also corresponded with CKP on several occasions on the subject. The Company therefore notes with disappointment the CKP Letter and the Rodyk Letter. The Company is fully committed to clarifying queries, if any, which the Exchange and CAD may have.
In the meantime, the Company has retained Tan Kok Quan Partnership to act as its counsel.
© Caution
Shareholders and any other investors are reminded to exercise caution when dealing in the shares of the Company. In the event of any doubt, shareholders and other investors should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers.
BY ORDER OF THE BOARD
Tan Kok Hiang Non-Executive Director 26 March 2012