Food Empire

[donmihaihai]

I would also rely on their disclosed risks in FX as they seemed to have disclosed that quite honestly, evidenced during the 2014 devaluation. Refer to my earlier post on a comparison. Personally I would rather refer to that disclosed number than infer from assets locality.

It is better to be roughly right than precisely wrong.

Urge you to re read the forex risk note again. Not what you are looking for. Read the paragraphs before reading the number. Nothing to do with honestly. I don’t fully understand Because of the word unit.

In my opinion on this forex risk note. Most co. Doesn’t care about it. Yes include cfo. Neither do I care as a reader and preparer of AR.

[Squirrel]

I would also rely on their disclosed risks in FX as they seemed to have disclosed that quite honestly, evidenced during the 2014 devaluation. Refer to my earlier post on a comparison. Personally I would rather refer to that disclosed number than infer from assets locality.

It is better to be roughly right than precisely wrong.

Urge you to re read the forex risk note again. Not what you are looking for. Read the paragraphs before reading the number. Nothing to do with honestly. I don’t fully understand Because of the word unit.

In my opinion on this forex risk note. Most co. Doesn’t care about it. Yes include cfo. Neither do I care as a reader and preparer of AR.

Donmihaihai and Specuvestor, thanks for all your inputs on this. Now, I do believe that I understand where investors are seeing the risks on this particular company. Someone in this forum mentioned before that every value stock has their own set of problems which results in them having depressed prices. The realization of value would come only when these problems prove to be transient or over exaggerated. I do see the fx and country risks that you guys are talking about and would be eyes wide opened when I buy into the company. Hopefully that would give me more nerves to hold it through its up and downs.

Otherwise, I am looking forward to the rationalization process and Indian factory expansion to see what they could do towards the profits and diversification of the company.

[Squirrel]

The company has posted its latest results.

https://links.sgx.com/FileOpen/3Q2019%20...eID=585245

Chugging along nicely with 35% uplift in profits year on year. Trailing twelve months earnings at USD23.46m (circa SGD31.9m). That translates to 9.15x PE on the current SGD292m, and this is assuming that the last quarter performs at the same USD2+m earnings in 4Q2018! In the quarter just reported, they raked in USD7.8m.

More earnings catalyst expected early next year from the coffee plant in India, "trial production is expected to commence in early part of 2020"

[mslee888]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

[Shiyi]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
--Peter Lynch

[Bibi]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
--Peter Lynch

Not necessary true. It might be to shore up confidence. I remember Noble Group chairman bought tons of shares after accounting scandal and before it almost went bankrupt.

[Squirrel]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
--Peter Lynch

Not necessary true. It might be to shore up confidence. I remember Noble Group chairman bought tons of shares after accounting scandal and before it almost went bankrupt.

I don’t think that situation will apply here. The company’s performance has been great so far. So I believe he views the company as undervalued. And he has been consistently buying shares in the company for the past few years.

I personally see management buying as a plus point, and that would make it more enticing to invest into said company.

[Bibi]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
--Peter Lynch

Not necessary true. It might be to shore up confidence. I remember Noble Group chairman bought tons of shares after accounting scandal and before it almost went bankrupt.

I don’t think that situation will apply here. The company’s performance has been great so far. So I believe he views the company as undervalued. And he has been consistently buying shares in the company for the past few years.

I personally see management buying as a plus point, and that would make it more enticing to invest into said company.

I apologize that my statement might have lead to some thinking Food Empire CEO's purchase is to shore up confidence. I was trying to point out that the Peter Lynch statement is not necessary true.

[Squirrel]

CEO bought 1340700 shares.

https://links.sgx.com/FileOpen/_Form%201...eID=585838

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
--Peter Lynch

Not necessary true. It might be to shore up confidence. I remember Noble Group chairman bought tons of shares after accounting scandal and before it almost went bankrupt.

I don’t think that situation will apply here. The company’s performance has been great so far. So I believe he views the company as undervalued. And he has been consistently buying shares in the company for the past few years.

I personally see management buying as a plus point, and that would make it more enticing to invest into said company.

I apologize that my statement might have lead to some thinking Food Empire CEO's purchase is to shore up confidence. I was trying to point out that the Peter Lynch statement is not necessary true.

Gotcha, and I agree with what you are saying with reference to Noble.

[Squirrel]

Any valuebuddies have experience or views on what's the expected ROI for capex to make an investment reasonable? Trying to gauge how much the new coffee plant would impact the business as $34m of investment so far since 2018 is pretty significant! From PPE of $64.389m in 2017 to the latest $97.832m in the last financial statement.