Challenger Technologies

[dydx]

Challenger is going to open a small store/outlet at Yew Tee Point in May11 (next month).....
http://info.sgx.com/webcoranncatth.nsf/V...E0047201E/$file/NewLeaseinyewtee.pdf?openelement

[memphisb]

Saw imm had another store call challenger mini

[Satchmo]

There is a small outlet in Thomson Plaza and also one in AMK Hub. Not bad locations as there is no/little competition for IT hardware products in those areas.

[dydx]

Challenger is opening yet another new store in Malaysia - its 4th so far, I believe - at the Bangsar Shopping Centre in Kuala Lumpur.....
http://info.sgx.com/webcoranncatth.nsf/V...80017AFD9/$file/Challenger-Announcement_on_New_Lease_060511.pdf?openelement

Location of Bangsar Shopping Centre....
http://maps.google.com/maps?rlz=1T4ADBR_...CCEQnwIwAQ

[memphisb]

price is pretty stable at .42 even after the issue of bonus shares.

[dydx]

Challenger is opening another new store in the new Changi City Point mall, located opposite the Singapore Expo MRT Station.....
http://info.sgx.com/webcoranncatth.nsf/V...E001241B4/$file/Announcement-NewLease-Changi-20110512.pdf?openelement

With an area of approx. 5,200 sq ft, this new store is quite a big one.

[dydx]

Checked my bank account this morning and noted a very nice credit from Challenger's $0.011/share Final dividend for FY11. Feeling great!

From Challenger's corporate website.....
http://www.challengerasia.com/
I have noted that in the last 3 months (Mar/May11), Challenger has opened a total of 6 new store outlets - 2 in Malaysia: Mahkota Parade/Malacca (opens 15Apr), and Suria KLCC/KL (opens 13May); and 4 in Singapore: Clementi Mall (opens 25Mar), Ang Mo Kio Hub (opens 6Apr), Northpoint (opens 21Apr), and Yew Tee Point (opens 26May).

From the Challenger Singapore website....
http://www.challenger.com.sg/index.html
I have also noted that this month (Jun11), Challenger is organizing a total of 5 roadshows in Singapore - at Tiong Bahru Plaza (20/26Jun), IMM, Level 2 (20/26Jun), Funan DigitaLife Mall, Main Atrium (24/26Jun), Clementi Mall, Main Atrium (24/30Jun), and Serangoon nex (20/26Jun).

Without any doubt, Challenger is a very hard-working enterprise poised for further growth!

[memphisb]

I don't think the road shows bring in much revenue.

Saw the one at jurong point and imm a couple of months back. not that much crowd interest except couple of passerbys or prc enquiring.

[dydx]

Challenger is due to release its 1H (ending 30Jun11) results by 15Aug11, and it appears that some investors have started to accumulate the shares in the last 2 days, probably in anticipation of positive results and something else. This is indeed a good sign!

With a total of 28 outlets in Singapore alone - comprising 1 Challenger Megastore, 16 full-format Challenger stores, 6 Challenger Mini stores, and 5 small-format Matrix IT Gallery stores - there is little doubt that Challenger Group is now the dorminant force in IT products retail/distribution in Singapore. Challenger has scheduled to open 3 more outlets - in JCube (Q4, 2011), 112 Katong (Q4, 2011), and Changi City Point (Q4, 2011) - by Dec11....
http://www.challenger.sg/locations_chall...ingoutlets

It is also interesting to note that Challenger has recently started selling refurb noteboks in its on-line store - 12buy.sg....
http://www.12buy.sg/OnlineShopping/New%20this%20month

I look forward to the coming 1H results and another Interim dividend (FY10: $0.012/share), which is usually paid out in early Sep.

[dydx]

This morning (21Aug11), someone decided to move Challenger's share price upwards to $O.465, up 12%, by buying just 1 lot. I wonder whether such kind of irrational share price movement has anything to do with Challenger's planned release of 1H's results scheduled for 3Aug11....
http://info.sgx.com/webcoranncatth.nsf/V...20014353A/$file/ChallengerAnnouncementondateofreleaseof1Hresults20110719.pdf?openelement

Based on Challenger's latest 345.208m issued shares and the last done share price of $0.465, market cap. is now $160.5m. A relevant question: Is Challenger's current market cap. at approx. $160.5m too high?

Against Challenger's FY10's NP of $13.663m (+24% yoy over FY09's $11.056m), Mr Market is now attaching a valaution based on a historical PER of 11.7x. As we can reasonably expect Challenger to grow its NP further by say +20% yoy, to approx. $16.4m in FY11, we can also say Mr Market is now attaching a valuation based on a prospective PER of 9.8x. Another relevant question: Is a prospective current-year PER of 9.8x too high for Challenger, which already has a well-established, growing business with a proven management, and a solid track record of steady profitability and increasing profits over time?