Challenger Technologies

[CityFarmer]

As a shareholder, i do cheer on dividend payout increment, and the sustainable growth of the company.

Let's take a closer look into the FR.

One concern is the decrement of GPM and NPM. The GPM used to be above 20%, but it seemed decreasing YoY to 18% in 1H13. The NPM used to be above 5%, but it was 4.4% in 1H13. It might due to margin compressed by suppliers. It might also the motivation to move up the value chain by doing its own direct procurement in HK. Having said so, the GPM margin seemed starting to improve QoQ, and I do hope the improvement will continue.

Balance sheet remained healthy, with no debt and high cash reserve. The BOD started to invest the cash into financial assets, which is a good news to preserve the cash from inflation

CCC was slightly higher, toward high single-digit. Looking further into detail, it was mainly due to shorter payable days, which should be alright IMO.

Comments are welcome

[lanoitar]

The BOD started to invest the cash into financial assets, which is a good news to preserve the cash from inflation.

Anyone found it curious that this $4.7m investment in bond (as mentioned in 1Q13) wasn't written down?

Worldwide bond yield spiked in June. I don't think there's any bond out there that didn't suffer a loss.

Of course, it may not matter if they're holding to maturity, and there's no change in the counterparty credit. Still, this is out of my expectation.

[CityFarmer]

The BOD started to invest the cash into financial assets, which is a good news to preserve the cash from inflation.

Anyone found it curious that this $4.7m investment in bond (as mentioned in 1Q13) wasn't written down?

Worldwide bond yield spiked in June. I don't think there's any bond out there that didn't suffer a loss.

Of course, it may not matter if they're holding to maturity, and there's no change in the counterparty credit. Still, this is out of my expectation.

I am not an accountant, but let me share my view

There are classifications of financial assets, and it will determine the measure methods, either by fair value or amortised cost.

Bond should be classified as financial asset with contractual cash flow, so fair value measurement is not required.

(vested)

[felixleong]

I think there was a married trade at 11am
500 lots for 20 cents, any of you guys have any idea of what's this?

[CityFarmer]

I think there was a married trade at 11am
500 lots for 20 cents, any of you guys have any idea of what's this?

The married trade was an exercise of call option, by Mr. Tan, the CEO of the company

http://infopub.sgx.com/FileOpen/FORM1_Lo...eID=254934

[felixleong]

thanks for the info

"Acceptance of 500, 000 shares @ SGD 0.20 per share by the Company’s Chief Operating Officer, Mr. Tan Huat Ben ("THB") pursuant to the terms of the conditional call option agreement dated 24 August 2012 entered into amongst THB, Mr Loo Leong Thye (Chief Executive Officer) and Mr Ng Leong Hai (Substantial Shareholder)."


if I am not mistaken the options were given to THB to poach him over from Microsoft to help Challenger as cheif operating officer, seems that this move have paid off well.

---

http://sbr.com.sg/information-technology...ng-officer

[CityFarmer]

thanks for the info

"Acceptance of 500, 000 shares @ SGD 0.20 per share by the Company’s Chief Operating Officer, Mr. Tan Huat Ben ("THB") pursuant to the terms of the conditional call option agreement dated 24 August 2012 entered into amongst THB, Mr Loo Leong Thye (Chief Executive Officer) and Mr Ng Leong Hai (Substantial Shareholder)."


if I am not mistaken the options were given to THB to poach him over from Microsoft to help Challenger as cheif operating officer, seems that this move have paid off well.

---

http://sbr.com.sg/information-technology...ng-officer

Yes, indeed. Mr. Tan deserved it.

Call option of 500 lots @20 cents, which is in the money by $180K, base on yesterday close of $0.56 per share. A peanut from the company, with its stock performance so far...

(vested)

[felixleong]

Yeah the new COO has been doing a great job
earnings have improved a lot, as well as the stock price
hope for more to come ^^

[adven7]

Hi I am new to this forum.

Anyone know why challenger are unaffected by the recent bear run? The price still remain constant throughout.

[kopitescouser]

Hi I am new to this forum.

Anyone know why challenger are unaffected by the recent bear run? The price still remain constant throughout.

maybe because the people who bought this shares believe in the company and its history? haha