Food Junction

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#51
(03-03-2011, 10:26 AM)nutty Wrote: Noticed someone grabbed 25 lots at $0.235 during pre-market.

I was watching the opening. The initial bid came in as $0.25 for 50 lots. And then minutes before 0900hr, the bid was reduced to 25 lots. I was quick (and lucky) enough to remove my offered shares or else the opening would have been lower and I would have done mine. One can "jump queue" if he offers lower or bids higher during closing and opening, and the transacted price will be based on matching (price and volume). The match must be better than or equals to his bid or offer. Knowing this doesn't give the investor an edge except perhaps to earn him some kopi money.
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#52
Again, today (17Mar11) Food Junction was queuing at $0.205 to buy back more shares. Unfortunately, they only managed to get 4 lots (out of a total 10 lots transacted).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
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#53
food junction buy back 1 lot at 0.205 out of a total of 2 lots volume today.
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#54
The just released FY10 (ended 31Dec10) AR makes very interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...90030ac2e/$FILE/Food%20Junction%20AR10_lowres.pdf

FJ's Food Courts, Restaurants, and Food Apps are expanding again, even though the FY10 group revenue of $47.362m (+0.2% yoy) did not show it yet, mainly because of (1) turnover loss due to temporary closure of our existing food courts that underwent renovation and retrofitting works, and (2) lower turnover contribution from self-operated stalls in the food courts, as management had made a conscious effort to cease or lease out non-performing self-operated stalls.

Based on the latest 127.408m outstanding issued shares (as at 8Mar11), and the last done share price of $0.21 (on 7Apr11), FJ now has a market cap. of only approx. $26.8m. This can't be right!

To have a good appreciation of FJ's present opertaions and business scale, it pays to read p4 through p22 of the AR in detail - especially the Managing Director's Review by MD/CEO David Lim from p12 through p22.
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#55
dydx, the purchase of 5mil for the hongkong venture looks delivering results. the china and indonesian ventures are not working out.

margins falling, revenues and profits falling.

they are not being the best of managers arent they?

to top it off, a 10% discount card HAD to be purchase for 5 bucks! I tot u would give this for free!
Dividend Investing and More @ InvestmentMoats.com
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#56
(08-04-2011, 09:07 PM)Drizzt Wrote: margins falling, revenues and profits falling.

they are not being the best of managers arent they?

I believe the present management headed by David Lim has incurred quite a lot of effort and time to tackle some legacy issues/problems inherited from previous CEO Andrew Fu Che-Yen who retired in Sep09. Rentals have also gone up.

David Lim appears as someone decent and hardworking, and I beleive he is capable enough to deliver better results for FJ. But most important of all is that at the current low market cap. and share price, FJ is a great value investing opportunity just based on the present scale of the group business alone.
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#57
Hi dydx,

by alot of valuation ratios this looks like an opportunity.

at 21 cents.

PTB: 0.86 times
Price to Operating cashflow: 3.90 times
EV/EBITDA = 0.99 times
Price to Sales = 0.56 times

IMO they just need 1 year result better than last year to earn back their market enterprise value. how hard can that be??
Dividend Investing and More @ InvestmentMoats.com
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#58
HI dydx, i did some analysis and can be seen here >> http://www.investmentmoats.com/stock-mar...portunity/

i think the main issue is escalating operating lease. And i don't see how that could come down anytime soon.
Dividend Investing and More @ InvestmentMoats.com
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#59
(09-04-2011, 10:17 AM)Drizzt Wrote: Hi dydx,

by alot of valuation ratios this looks like an opportunity.

at 21 cents.

PTB: 0.86 times
Price to Operating cashflow: 3.90 times
EV/EBITDA = 0.99 times
Price to Sales = 0.56 times

IMO they just need 1 year result better than last year to earn back their market enterprise value. how hard can that be??

The operating lease liability has increased by 33%, representing 90% of previous year's revenues, whereas for Dec 2009, they represented about 67% of the year's revenues.

The operating lease expense going forward should be about $5m per quarter, which should be higher than any of the last 4 quarters too.
Once you add back the operating leases, EV/EBITDA is a whole lot more than 0.99 - and it does not look so spectacularly undervalued.

While they've opened 1 new restaurant in China and 2 new food courts, it does not look like they've increased the square footage by 33%; rather they're paying more per square foot. And if they have proudly said that they're not rising prices for the next 6 months, then it looks bleak for margins.

The annual report is very nice & glossy, more happening than it was in 2007. What it does say is that they're (i) having more fancy food courts and (ii) moving from simple no-frills food-courts to full-service restaurants.

The thing is that (i) it still remains to be seen if nicer decorations convince people to pay 20-30% more for their food, and for 2010 they have not charged fees to the stallholders that match their rent increases. (ii) Restaurants are usually more competitive than food courts - they are a higher cost producer, the consumer has a lot more choice and barriers to entry are lower.

Unfortunately, the annual report isn't telling us (i) how they see themselves adjusting to higher lease costs and (ii) how the restaurants (esp the money losing one in China) are doing, although we get very tantalizing hints (like from stock buybacks) that some turnaround / improvement is underway.





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#60
Hi Dritzz,

I visited your blog and saw that :
Enterprise Value : 6.89 mil.

How did you derive at the value of 6.89 mil ?
Thanks.
A public-opinion poll is no substitute for thought.
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