Epicentre Holdings

[Tiggerbee]

Based on the allotment of 298.63M shares, the enlarged share capital will consist of about 391.191M shares. Based on proforma profit of $6.2M, the estimated EPS of the enlarged company will be about 1.585 cts, implying a PE of about 9.2x based on current traded price of 14.6 cts (assuming that Epicentre's existing business assets are liquidated).

(Trading vested)

[CityFarmer]

The RTO proposal with Healthtrends Medical Investments Ltd has been terminated.

http://infopub.sgx.com/FileOpen/Epicentr...eID=360047

(not vested)

[mkmk]

The RTO proposal with Healthtrends Medical Investments Ltd has been terminated.

http://infopub.sgx.com/FileOpen/Epicentr...eID=360047

(not vested)

http://www.valuebuddies.com/thread-6306-...#pid116555

LifeBrandz signed an RTO with Healthtrends Medical Investments Ltd instead.

[CityFarmer]

The company, has became a good case study for the crowd-funding. Thank you for the info posted so far.

(not vested both in the company, as well as the crowd-funding)

[Big Toe]

Briefly browsed Epi centre its results and its facebook.

FY15 cash 5+M, when revenue is 178M???
Gross profit only 16M when Admin expenses alone >18M
Facebook is with a sizable 89K likes but with almost no one reading or liking their posts.
I did not dig further(no point), but valuation seems very much higher(NAV) than strong cash flow positive companies with much higher gross margins
and a good history of paying constant dividends.

If you ask me, I would want nothing to do with Epicentre. They can probably pay back all the money owed(for now).
Now I understand why they needed to raise money this way.

[CY09]

Yup, this is why I think Epicentre shareholders are now holding a stock of little value. It is worth noting while Epicentre has a NAV of 5.1mil, majority of its assets are in 11.8mil of inventory and 1 mil in PPE. Furthermore, the holdings company has been making losses of about 2 million every year. Also, Moolahsense late payment interest is onerous - 30% pa.

Let's consider the event of liquidation, bank and moolahsense creditors are likely to be the first in line to get capital. From my analysis, considering legal fees from creditors and selling inventories at 30% discount, creditors are likely to be able to get all their cash back. Unfortunately, for shareholders, the liquidation will leave very little on the plate for them.

Furthermore, with Apple opening its new store in August 16, it is going to be tough for Epicentre, especially for its 313 and ion outlet which is near the impending store.

That's one thing good of having a listed company do crowd funding - I have access to its financials and am able to think out most of the scenarios before investing. Given that the chairman has 60% stake and most of his wealth is tied to Epicentre, let's see how he moves. A wrong move and he may no longer be a millionaire.

[Raks]

Yup, this is why I think Epicentre shareholders are now holding a stock of little value. It is worth noting while Epicentre has a NAV of 5.1mil, majority of its assets are in 11.8mil of inventory and 1 mil in PPE. Furthermore, the holdings company has been making losses of about 2 million every year. Also, Moolahsense late payment interest is onerous - 30% pa.

Let's consider the event of liquidation, bank and moolahsense creditors are likely to be the first in line to get capital. From my analysis, considering legal fees from creditors and selling inventories at 30% discount, creditors are likely to be able to get all their cash back. Unfortunately, for shareholders, the liquidation will leave very little on the plate for them.  

Furthermore, with Apple opening its new store in August 16, it is going to be tough for Epicentre, especially for its 313 and ion outlet which is near the impending store.

That's one thing good of having a listed company do crowd funding - I have access to its financials and am able to think out most of the scenarios before investing. Given that the chairman has 60% stake and most of his wealth is tied to Epicentre, let's see how he moves. A wrong move and he may no longer be a millionaire.

If it really goes to liquidation, it would be a crude awakening to many.

Crowd funding creditors are still "safer" than ordinary shareholders.

[Big Toe]

When valuing a company, we see what are its strengths, where the future profits are going to come from, how easy it is to duplicate its business, whether business can be sustainable in the long run etc It is much easier to spot a bad company from a good one. Epi centre is an easy one, it is not very different from any other Apple reseller, there is nothing to differentiate itself from its competitors, it does not own rights to anything as far as I know, there is little or no value taht can be associated to its business right now, its margins show how much pricing power Apple has over its re-sellers/vendors. A good business will spend one dollar and get ten back. A bad business will spend 10 dollars and get 5 back.

I would be very worried if I am the boss of Epicentre now. 2 Things he could do 1. Stick to the current path, expand margin, control cost. 2. Go into a new business, preferably related business because the current model is not going to last, with or without apple setting up its own store.

[specuvestor]

Yup, this is why I think Epicentre shareholders are now holding a stock of little value. It is worth noting while Epicentre has a NAV of 5.1mil, majority of its assets are in 11.8mil of inventory and 1 mil in PPE. Furthermore, the holdings company has been making losses of about 2 million every year. Also, Moolahsense late payment interest is onerous - 30% pa.

Let's consider the event of liquidation, bank and moolahsense creditors are likely to be the first in line to get capital. From my analysis, considering legal fees from creditors and selling inventories at 30% discount, creditors are likely to be able to get all their cash back. Unfortunately, for shareholders, the liquidation will leave very little on the plate for them.  

Furthermore, with Apple opening its new store in August 16, it is going to be tough for Epicentre, especially for its 313 and ion outlet which is near the impending store.

That's one thing good of having a listed company do crowd funding - I have access to its financials and am able to think out most of the scenarios before investing. Given that the chairman has 60% stake and most of his wealth is tied to Epicentre, let's see how he moves. A wrong move and he may no longer be a millionaire.

If it really goes to liquidation, it would be a crude awakening to many.

Crowd funding creditors are still "safer" than ordinary shareholders.

I didn't investigate Moolahsense but I assume their loans are unsecured hence just a notch above Equity? Listed equity also means investors can get out of the company if they choose to (subjct to liquidity and regulatory constraints), whereas Moolahsense loans cannot be traded until maturity?

Investors should know the difference in counterparty risks between exchange traded, banks OTC and unregulated OTC.

[CityFarmer]

More info on Epicentre crowd-funding, from BT.

Epicentre first S'pore-listed firm to use p2p lending

...
The debt is backed by a corporate guarantee from Epicentre Holdings, which swung into a net loss for the first half of fiscal 2016. Corporate guarantees are not common as most peer-to-peer loans are backed by personal guarantees. The debt will be repaid through the sale of merchandise, according to a summary of the deal seen by The Business Times.

One tranche has an option for Epicentre to repay the debt earlier than 12 months, through what is known as a callable note.
...
Source: Business Times