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CEO Loo is the TOP brain, worth the 1milo!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Noticed this stock is like Super group
Took big hit in earnings and their stock price dropped a lot
Down 25% from its high of about 60 cent to the current 45 cents
Is it worth a value buy now?
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27-09-2014, 04:34 PM
(This post was last modified: 27-09-2014, 04:35 PM by BlueKelah.)
Excellent examples why earnings and PE are not for the value investor, what will happen when earnings drop further???
Better use the other valuation metrics to get a better picture before deciding on value.
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Challenger's earnings like to fall further?
I thought the malaysia store closures just one off lost only?
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(27-09-2014, 04:34 PM)BlueKelah Wrote: Excellent examples why earnings and PE are not for the value investor, what will happen when earnings drop further???
Better use the other valuation metrics to get a better picture before deciding on value.
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Earning not for value investor? IIRC, Mr. Buffett uses "owner earning", which is a variance of earning
There are at least two major camp of valuation among value investor, one is using net-net on asset, the other one on earning growth
Anyway, I do agree PE valuation alone isn't sufficient.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Challenger is currently trading like 3 times book value, while courts asia is trading below book value
does that mean courts asia is a bargain? probably not
I think its more fair to use earnings or cash flow to measure the value of challenger?
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saw the price creeping down to 44 cts.. not sure why? maybe the biz is at a x-road now?
Be patient and see the coming Q results...
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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(03-10-2014, 10:40 AM)brattzz Wrote: saw the price creeping down to 44 cts.. not sure why? maybe the biz is at a x-road now?
Be patient and see the coming Q results...
Yes, Mr. Market isn't buying into the concept of Valore.
The stock is the largest drag on 2014 portfolio performance now. I am still confidence on the stock, and more specifically, on the management strategy.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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03-10-2014, 11:47 AM
(This post was last modified: 03-10-2014, 11:52 AM by LLS.)
I think its pretty cheap at the current price
if dividend payout is maintained, its about 5% dividend yield
and also if I am not wrong it has about 13 cents of cash in its balance sheet (no debt at all)
I think its a pretty safe bet at this price
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04-10-2014, 09:06 PM
(This post was last modified: 04-10-2014, 09:10 PM by CY09.)
Challenger does seem to be selling at a fair value, given the 1.3M one-off loss from Malaysia; moving forward EPS should be 4 cents.
However, I am a bit skeptical of the success of Valore strategy. The accessories of Valore seems to be more ex than online comparable and the brand is not that well-known to be a moat. So I am unsure how successful will Valore be. Also, growth of Challenger is likely to be slow but stable. Probably 2% growth for EPS every year?
For those buddies interested, Challenger is also branching out into a new concept shop called "Musica". Musica is a store that sells musical peripherals and accessories. In my view, Challenger's strategy is branching out to be expert retailers of different electronic categories. In the short term, I suspect the new concept stores will cannibalize Challenger sales. However, if successful, the ability to be the "go to store" in each niche area will bear dividends and kill off retailers who does sales of large selection of IT products