No Signboard Holdings

[karlmarx]

Decided to check on NSB after it released its AR. Was looking for what caused the losses, and saw some goodwill impairment, IPO expenses, and...

Key Management Compensation

FY14: $625k
FY15: $420k
FY16: $387k
FY17: $547k
FY18: $2,133k

I think the hypothesis of NSB being a vehicle for the Lim family to transfer risk to opmi, and extract benefits for themselves, still remain.

[specuvestor]

It’s a great case study for OPMI... only 3 pages

[karlmarx]

NSB is less complicated than SG, so its issues are also less difficult to understand.

Sometimes, the issues are more than financial or corporate governance malfeasance. It is a challenge to remain objective, and take appropriate action, when you have a vested interest.

In other news, MAS has a launched $75m grant that is in part intended to boost small/mid cap equity research. Some of it should be channelled to administrators and members of VB.  

http://www.mas.gov.sg/News-and-Publicati...g-hub.aspx

[sgmystique]

NSB is less complicated than SG, so its issues are also less difficult to understand.

Sometimes, the issues are more than financial or corporate governance malfeasance. It is a challenge to remain objective, and take appropriate action, when you have a vested interest.

In other news, MAS has a launched $75m grant that is in part intended to boost small/mid cap equity research. Some of it should be channelled to administrators and members of VB.  

http://www.mas.gov.sg/News-and-Publicati...g-hub.aspx

Three cheers to your suggestion karlmarx 

[karlmarx]

More strange happenings at NSB.

Following the approval of the Share Buyback Mandate by the shareholders at the AGM, the Company’s Executive Chairman and CEO, Mr Lim Yong Sim (“Mr Lim”), instructed the Company’s broker, UOB Kay Hian Pte. Ltd. (“UOBKH”), to queue for the purchase of the Company’s shares at a price of up to $0.14. As at 12:12 p.m. on 31 January 2019, a total of 1,068,700 shares were purchased (“Share Purchase”). This was an honest mistake on the part of Mr Lim as he did not notice that the Share Purchase at prices of up to $0.14 exceeded the 5% cap above the average closing price of the last five days (“Share Price Cap”) permitted under the Share Buyback Mandate of $0.1226 as at 31 January 2019. 

The Shares Purchase transaction was thus undertaken before the Company’s 1Q2019 Results were announced on 1 February 2019 which was still during the dealing restriction period for dealing in the securities of the Company (“Black-out Period”).

http://infopub.sgx.com/FileOpen/NSB%20-%...eID=542670

I wonder why the corporate secretary, broker, or sponsor did not advise Mr Lim on this matter. Perhaps Mr Lim mistook the company share buyback for his holding company which he has been using to buy back shares. 

He does seem keen to provide support to the share price.

[CY09]

What is more interesting is the liquation of their Danish Beer Subsidary.

https://links.sgx.com/FileOpen/NSB%20-%2...eID=542501

This means the sexy angle of the business is no longer there and the company now has to re focus itself to its food position. The company has widening losses in its recent Q1 results. No doubt its good news that that the CEO has initiated a share buy back, but if business is not good now, its better to conserve cash

[money]

What is more interesting is the liquation of their Danish Beer Subsidary.

https://links.sgx.com/FileOpen/NSB%20-%2...eID=542501

This means the sexy angle of the business is no longer there and the company now has to re focus itself to its food position. The company has widening losses in its recent Q1 results. No doubt its good news that that the CEO has initiated a share buy back, but if business is not good now, its better to conserve cash

More interestingly, losses start appearing after listing takes place. Is the beer business kept during listing to make it sexy but sold after listing? That's something opmi have to ponder

[Big Toe]

Happy New Year to everyone.

Beer and beverage is extremely difficult for any small to medium sized firm.
Competing head on with the bigger beer brands is suicide. In chilli crab, they compete with few players in a tiny market.
So far no large F&B company are keen to go into chilli crab yet.

Many small firms do well in their own respective area because they started early and there were very few competitors then(or even now).
Some will find success overseas expanding on their niche to different locations(jumbo). Most will fail miserably especially if they take on something they don't have the finance or competence for.

In this case, not sure if it is a case of no signboard over estimating their capability or they already knew way ahead it would not survive but did it anyway to hype up the listing. Your guess is as good as mine.

[specuvestor]

That is true, established players have spent millions of dollars in advertising and other forms of sponsorships to get to where they are. The status and consumer mindshare, I reckon it is an easy path for No Signboard.

Agreed. have to spend on A&P/retail presence(?) to maintain consumer franchise/mindshare. Once stopped, the new generation will not know about the brand. You guys probably heard of Ka-ka, Mama Lemon, UIC detergent etc..
But not the millenials...

As for NSB's beer adventure, I guess it is there to have some sexy angles or to take from private hands to public vehicle.

^^Agree that it’s probably a sexy angle to hype up an IPO

Nice summary

IMHO No signboard also seems No Clue. They are also looking to expand to heartlands which I'm not sure they can maintain quality. Their franchise model for Geylang seems strange and looking to franchise in China. They just bought Draft Denmark in June, just Before 9M17 and already looking to invest into own brewery

Agree their trajectory is not comparable to Jumbo

They are keeping the cash cow and passing risk of new ventures to investors. Unless the new ventures turn profitable, no point spending time

Hi Big Toe I think it's a bit more than just "guess"

In this case, not sure if it is a case of no signboard over estimating their capability or they already knew way ahead it would not survive but did it anyway to hype up the listing. Your guess is as good as mine.

[level13]

Their directors also have no clue..... unfortunately. 

https://www.theedgesingapore.com/no-sign...price-jump

Self-inflicted wound.