there is a Best World guru, dydx, at
who posted the following : Q2/1H-FY09 results just out..... When one compares the Q2 numbers against the Q1 numbers, it is quite clear the worst for Best World\'s direct marketing business - to me, it happened in Q1 - could have passed. Let\'s hope for steady growth in rev. and profits from Q3 onwards..... It is also important to note that as at 30Jun09, Best World\'s nett cash reserve has increased to $38.82m (from $33.3m as at 31Mar09) - equivalent to $0.188/share, based on the 206.25m issued shares. Based on 1H\'s EPS of $0.0254, full-year FY09\'s EPS could well come to $0.06, bearing in mind historically, Best World\'s direct marketing business produced higher rev. and profits in the 2H. An ultra-conservative PER of 7x would give a fair value of $0.42 for a Best World share, before attaching any additional value on the company\'s huge nett cash reserve. I welcome fellow forumers to share your views on the valuation of Best World\'s business and the unit share. An interim div. of $0.012/share declared, with payment date to be advised.
PER 7x!!! Way too low for a company with such huge potential. Moving forward, a blended PE of 10 based on FY10 sound more reasonable. With the recovery in sight, eps of 7.5c for FY10 is reasonable. At least worth 70c. If there is any M&A, valuation deserved to be higher than 10!
posting by dydx at
www.wallstraits.com I think the best way to understand and appreciate the strength, dynamism, and potential of Best World\'s MLM and direct marketing business is to watch and listen to the personal success stories of its many leaders, and what others who know them and in the business say about these people and their success.....
The personal success stories of Maggie Goh (Singaporean) and Rita Ong (Indonesian) are simply amazing, and there are so many more, each one from a different background and walked through a different life path..... My conclusion: Human motivation at a personal level and in a group can really transform people and a business. Simply awesome! Another key point to be recognized: These proven leaders in Best World and the entire MLM distribution organization in the company - with distributors or members covering the regional market - are not relected on the B/S.
posting by dydx at wallstraits.com: i think he still believes in the stock. damn cheap! Last evening (9Nov09), Best World released a set of rather disappointing Q3-FY09 results, in which both revenue and profit suffered a big drop due to major problems being experienced in selling into Indonesia caused by recent changes in cosmetic regulations in that country, other and related problems.....
Apart from Indonesia, other markets remained relatively stable, with Thailand and China continuing to post healthy revenue increases amid overall cautious consumer spending in all markets. B/S as at 30Sep09 remained rock-solid, with Equity standing at $50.77m, including a nett cash position of $37.62m (after netting off $2.48m dividend payable). This translates to a NAV/share of $0.2461, and Nett Cash/share of $0.1824, based on the 206.25m issued shares. Understandably, Best World\'s share price has fallen this morning, by $0.03 so far and last done at $0.335. If we strip off the nett cash, Mr Market is now attaching a value on Best World\'s regional MLM business at only $31.47m, or $0.1526/share. Based on PER, assuming Best World attains an EPS of $0.037 in the current FY09 (bearing in mind EPS for 1st 3Q\'s already came to $0.0308), Mr Market is now pricing Best World\'s still decently profitable operating business at only 4.12x! This cannot be quite right! Would Best World cut the final dividend for FY09 (last FY08: $0.01/share)? Possible, but unlikely, I believe. Understandably the recent changes in cosmetic regulations in Indonesia are affecting all the players, and everyone is trying hard to meet the new registration and other requirements, which will take some time. Hopefully, just like what had happened in the past, the current problems and situation will pass given enough time.....