Best World

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06 Jan 2019 14:18 #24615 by BNN
Replied by BNN on topic Best World
Best World shot up nearly 100% in 2018. Currently, $2.73. Is it overvalued?

In 3Q2018, its revenue was $92 million. Let's assume a little growth (among several assumptions) and round it up to $100 million, giving $400 million revenue for the next 12 months.

assume net margin of 25%, then EPS becomes 18 cents.

PE valuation = $2.73 divided by 18 cents
= 15X.

For a high-growth biz, I wouldn't consider PE of 15x to be expensive.

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14 Jan 2019 09:52 #24630 by BNN
Replied by BNN on topic Best World
On several occasions, traders have figured that BW was ripe for shorting. My friends' shares were borrowed from CDP and Phillip Securities by these traders. The fact is, shortists have made little money or even lost a lot because the share price has been resilient. No doubt, shortists will try again and again. Good luck!

If BW's 4Q results to be released in probably 3-5 weeks time are excellent, the share price will head towards $3.00. If the results are below market expectations, then shortists will swarm in and knock it down.

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18 Feb 2019 22:15 - 18 Feb 2019 22:29 #24671 by Val
Replied by Val on topic Best World
Some shortists got a hongbao today by covering early, others will get a whacking because the trading halt prevented them from covering their shorts. Just have to wait for SGX to buy-in (and this can be costly as the buy-in price depends on the market price + a premium)

About 1.2 million BW shares were shorts. SGX source:

api2.sgx.com/sites/default/files/reports...Sell201902181815.txt
Last edit: 18 Feb 2019 22:29 by Val.

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24 Feb 2019 17:27 #24673 by Joes
Replied by Joes on topic Best World
Shorts are opportunistic and they cause the share price to move in a direction that does not necessarily reflect the real fundamentals of the business.
Seeing the Best World long clarification, what do you think ? Anyone has a view that is different (or similar) to Sharejunction (mainly short-term traders) and Valuebuddies (mainly sceptics)?


links.sgx.com/1.0.0/corporate-announceme...671a0ee897ce2bb7fbda

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24 Feb 2019 18:54 - 24 Feb 2019 18:58 #24674 by Val
Replied by Val on topic Best World
>> When BT showed Best World's league table to Euromonitor, a Euromonitor spokesman expressed surprise.

"We are not sure about how they rank themselves by the reference of Euromonitor's source. Indeed, according to our research methodology in 2017 they were not significant enough to be tracked," she said.

"So we are lacking solid source to recognise its market share in the context of premium skincare in China."


Best World's response:

The Company obtained the market data and industry ranking used in its 3rd quarter 2018 corporate presentation directly from Euromonitor . In late-2018, the Company commissioned Euromonitor to conduct an industry analysis and research on the markets in which the Group operates.



LOL

1. Who was the Euromonitor 'spokesman"?
2. Was she the authorised spokesman (or someone who picked up the phone on the way to lunch?)
3. How come she gave the erroneous response which let BT down badly?
4. Were BT and Euromonitor "spokesman" talking the same language or was there a miscom?
Last edit: 24 Feb 2019 18:58 by Val.

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26 Feb 2019 08:29 #24675 by lotustpsll
Replied by lotustpsll on topic Best World
For BT to go after a successful homegrown group is a shame. I am a Malaysian and even I feel it this way.

The timing of BT article and the heavy shorting of BW in the past 2 days is a suspect and should warrant an investigation by the Authorities.
the Authorities.

Based on my experience in corporate risk management, I would find it difficult for BW to engage in accounting malpractice. It is almost a cash business model, no evidence of asset shuffling and accounting policies are easy to understand.
There is a popular saying "cashflows do not lie". Yet, BT is alluding that BW may be engaging in suspicious activities.

The Independent Review is a good step forward and should be concluded as soon as possible.

I also hope that BW provides more details of Franchisee performance in its financial reporting. This will be a welcome move.
The following user(s) said Thank You: Genelim87

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