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Kimly
04-09-2019, 08:29 AM.
Post: #31
RE: Kimly
(04-09-2019, 02:28 AM)Big Toe Wrote: 3. So who cooked up the plan? My best guess is both parties, it takes too hands to clap but from my perspective, it is unlikely a coffeeshop chain would hatch or initiate such an elaborate plan.

Between his top job at Pokka, and building and selling ASC to Kimly, it does not seem to make sense (to me) for Ong -- in terms of risk and reward -- to ditch the former for the later. I mean, the guy is probably worth a few millions. Why take so much risk for just a couple of millions more?

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04-09-2019, 11:22 AM. (This post was last modified: 04-09-2019, 11:40 AM by Big Toe.)
Post: #32
RE: Kimly
(04-09-2019, 08:29 AM)karlmarx Wrote:
(04-09-2019, 02:28 AM)Big Toe Wrote: 3. So who cooked up the plan? My best guess is both parties, it takes too hands to clap but from my perspective, it is unlikely a coffeeshop chain would hatch or initiate such an elaborate plan.

Between his top job at Pokka, and building and selling ASC to Kimly, it does not seem to make sense (to me) for Ong -- in terms of risk and reward -- to ditch the former for the later. I mean, the guy is probably worth a few millions. Why take so much risk for just a couple of millions more?

1. There is always the big loan that was taken up to pay for the landed property among other things.

2. Top job, esp a local and regional role do not equate to top pay. I know of private companies that are larger than Kimly but the top guy get paid peanuts. Of course the top guys have shares in the group of companies which maybe worth hundreds of millions. Pay is secondary. Does Ong own a significant stake in Pokka, unlikely.

3.  The other question is valuation of ASC, $16M, not a lot of money in corporate terms but a lot of money if you think how it is created from thin air and is a failed business. It is just a tiny leech feeding on Pokka's resources. Then again failed businesses that burn hundreds of million with no path to profitability can be valued at billions, so this may not be so far fetched after all in the world we currently live in.

Valuation models are so advanced now, new metrics are created to make everyone feel good about themselves and push valuations to space and beyond. This is true in the PE space where too much money is chasing after too few quality investments.

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