Best World

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14 years 1 month ago #3087 by Bestworld
Replied by Bestworld on topic Re:Best World
Pharoah88 wrote:

During the CNY visiting, it was a surprise to hear that quite a number of employees did not have bonus for 2009. With the reduction in disposable cash, sustainability of MLM business comes into question. That is probably the reason for the huge cash reserve. When economy actually recovers by end 2010, prospect will be better for MLM company.

Still expect bonus when the company not performing? Blame on the economy for not doing a good job!!! Check how other MLM company in this region doing. Haio is listed in Malaysia and should be a fair comparison.

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14 years 1 month ago #3090 by Dongdaemun
Replied by Dongdaemun on topic Re:Best World
I agree with ereleation\'s estimates. Use 2009 forecast EPS = 3.7cents (9mth EPS= 3.08cents). To use Q3 eps x 4 is unnecessarily conservative - if you are referring to FY09 forecast. If u are referring to 2010, it is premature since we will know Q4 09 by next week. On balance, I am not too optimistic about Q4 results. But will they maintain 1-c final dividend. I think they should, given the enormous cash holdings of the company

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14 years 1 month ago #3091 by MacGyver
Replied by MacGyver on topic Re:Best World
I don\'t understan what the fuss is about.:P This is a Company that has grown rapidly over the past 6 years since listing. There are bound to be some teething problems along the way. From the look at the balance and correctly pointed out by several forummers, the biz is only valued at 2-3x excluding the cash. The FCF of the biz remains well. The Company is paying good dividends. Better than the CPF Special Account. This is a Singapore Company and not a S-chip. There are also concerns: 1) Their Singapore and Malaysia sales have been dropping. Their Indonesia side is not doing too well too... How much of this is due to competition and how much of this is due to the economy? 2) The cash hoard suggests that the management is prudent. But it also could mean that the management has no idea what to do with the cash... It would be worrying if they try to appease investors and go out to make a worthless acquisition. 3) How committed is the management now? The two lady founders have made their fortunes with a placement at 80 cents in 2007. Are they still \"Hungry\" ? On paper, the Company seems extremely cheap. Analysts are not looking at it. (As usual.They only come when everybody knows the story.) If I were you, I will be quietly buying more shares and waiting for the Company to embark on another rapid growth phase, hopefully in the near term.

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14 years 1 month ago #3094 by Bestworld
Replied by Bestworld on topic Re:Best World
Interesting, so many ppl think this is a good buy! But volume always so low and selling pressure always so strong! A poor Q4, will drive it further down!! Unless there is already plan to return cash back to shareholders, if not, never value a stock base on EX cash!! Again, take a look at Haio, see how they perform over the last 1 year and compare to BW!! Look at what M&A or major investments that they have done since listing that require huge amount of cash (37millions cash!) So cheap, why founders not buying share from open market? Why no share buy back when they have the mandate to do so?

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14 years 1 month ago #3155 by Dongdaemun
Replied by Dongdaemun on topic Re:Best World
Q4 has beat expectations, leading to FY09 EPS at 4.69 cents! PE only 6X based on 28 cents stock price. The thing is Best World has no debt, and lots of cash - S$36 million! Or 17.5 cents per share of cash. Ex-cash, the PE is only 10.5 divided by 4.69 EPS = 2.2 X Wow what a steal!!! At a modest 6.6 x PE (ex-cash), the stock is valued at 84 cents!!!!

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14 years 1 month ago #3157 by Bestworld
Replied by Bestworld on topic Re:Best World
Decent performance but not great. Sale in Thailand save the day! To be a great coy, more need to be done. \"With the Group\'s healthy cash reserves of $36. million...............to diversify the Group\'s revenue and to enhance shareholder\'s value\"!!! Well said, great vision but must have actions!! \"Barring any unforeseen circumstances, Management expects the Group to remain profitable in FY2010\" Profitable is not good enough, growth in revenue and profit is a must to deserve better valuation.

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