Maxi-Cash Financial Services Corporation

[CityFarmer]

The very 1st SGX announcement of the new-born Maxi-Cash, out from its parent, Aspial.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Start trading with effect from 9.00 a.m., Friday, 22 June 2012

[CityFarmer]

Placement and balloting result are announced

For public shares, among total applicants of 2223, only 770 success with 1-25 lots allocated each. The success rate is 35%.
The total share in this group is only 2,680 lots, less than 1% of the total share outstanding.

For placement, among 53,320 lots available for placement, 42,320 lots are placed to public, while the rest placed to related persons (directors, mother, sis-in-law and brothers of directors). The total of applicants is not disclosed, but logically the success rate should be 100%.
The total share of this group is 53,320 lots, 18% of the total share outstanding

IMO, the placement is not popular, maybe due to the non-attractive IPO pricing

[CityFarmer]

Till 11am, the volume traded is approx 33 Mils share.

Exclude the related persons holding of 11 Mils shares, the IPO share is 45 Mils, so more than 73% of IPO share been transacted. If included the related persons holding, then 59% of IPO shares been transacted

I am interested to know who are the buyers? Underwriter?

[CityFarmer]

The market close with an amusing traded volume for Maxi-Cash, 85.4 Mils shares

By looking further into the volume distribution.

- approx 23 Mils share are transacted with >100 lots per transaction
- more than 20 Mils share are transacted with 51-100 lots per transaction
- more than 30 Mils share are transacted with 16-50 lots per transaction
- the rest is with less than 16 lots per transaction

Total share in public is 56 Mils share, while volume today is 85.4 Mils share, so logically all public shares are changed hand.

Logically, since the lots/transaction >100 lots have volume of 23 Mils share, insiders (and/or related persons) are selling, and probably Aspial also reducing their holding?

We shall see from the subsequent announcement.

[shanrui_91]

The market close with an amusing traded volume for Maxi-Cash, 85.4 Mils shares

By looking further into the volume distribution.

- approx 23 Mils share are transacted with >100 lots per transaction
- more than 20 Mils share are transacted with 51-100 lots per transaction
- more than 30 Mils share are transacted with 16-50 lots per transaction
- the rest is with less than 16 lots per transaction

Total share in public is 56 Mils share, while volume today is 85.4 Mils share, so logically all public shares are changed hand.

Logically, since the lots/transaction >100 lots have volume of 23 Mils share, insiders (and/or related persons) are selling, and probably Aspial also reducing their holding?

We shall see from the subsequent announcement.

This is not really the case as it is on the assumption that the share is being turnover once. There are traders there that will buy and sell numerous rounds and the lead manager will also attempt to support the price.

On a side note, I was at Clementi earlier in the day and I noticed 3 pawn shops within sights of each other. Maxi-Cash is right beside this traditional pawn shop and the Money Max (which have 21 shops according to the website) is around 20m away. Is pawn broking so lucrative such that all the pawn shops are crammed together? Coincidently, I also noticed that there's a few bubble tea shops in that area within sight of each other.

In terms of price of gold and interest rate, they are pretty similar. I went into Maxi-cash to have a look at the second hand items and was surprised to see that they all look pretty new. I asked the manager and she says that they have all been polished before they are being displayed for sale. I look at the price of gold between old and new and the difference is around $3 per gram for a 24 carat gold ($72.50 and $75.50).

I am not going to call it a 2nd hand dealer anymore. I shall call it a discount shop for those who wish to purchase gold and silver jewellery at a cheaper price. However, it also means that they are being subjected to the price of gold and silver as there will be a time lag from when it is sold to Maxi-cash and when it is sold to the customer. The disconut shop model is perhaps why it enjoy a decent ROE for its resale segment.

There is a pretty good article on Maxi-cash by Investor Central
http://www.investorcentral.org/show_text...xtid=15406

Investor Central has some pretty good articles as the founding idea behind it is "we ask the questions that need to be asked".

[CityFarmer]

The market close with an amusing traded volume for Maxi-Cash, 85.4 Mils shares

By looking further into the volume distribution.

- approx 23 Mils share are transacted with >100 lots per transaction
- more than 20 Mils share are transacted with 51-100 lots per transaction
- more than 30 Mils share are transacted with 16-50 lots per transaction
- the rest is with less than 16 lots per transaction

Total share in public is 56 Mils share, while volume today is 85.4 Mils share, so logically all public shares are changed hand.

Logically, since the lots/transaction >100 lots have volume of 23 Mils share, insiders (and/or related persons) are selling, and probably Aspial also reducing their holding?

We shall see from the subsequent announcement.

This is not really the case as it is on the assumption that the share is being turnover once. There are traders there that will buy and sell numerous rounds and the lead manager will also attempt to support the price.

Good input from shanrui_91, thanks. You maybe right. I had no way to confirm that, but that is a possibility.

I have no experience on trading pattern of trader, but by looking at the trading history of last Fri, the buy-up volume is 3x of sale down. The bulk of the buy-up volume happen at the early morning and end afternoon. It does not seem that traders were on contra deal. If it is done by lead manager, but lead manager is to stabilize price, rather than pull-up the price.

Still trying to figure it out myself???

On a side note, I was at Clementi earlier in the day and I noticed 3 pawn shops within sights of each other. Maxi-Cash is right beside this traditional pawn shop and the Money Max (which have 21 shops according to the website) is around 20m away. Is pawn broking so lucrative such that all the pawn shops are crammed together? Coincidently, I also noticed that there's a few bubble tea shops in that area within sight of each other.

In terms of price of gold and interest rate, they are pretty similar. I went into Maxi-cash to have a look at the second hand items and was surprised to see that they all look pretty new. I asked the manager and she says that they have all been polished before they are being displayed for sale. I look at the price of gold between old and new and the difference is around $3 per gram for a 24 carat gold ($72.50 and $75.50).

I am not going to call it a 2nd hand dealer anymore. I shall call it a discount shop for those who wish to purchase gold and silver jewellery at a cheaper price. However, it also means that they are being subjected to the price of gold and silver as there will be a time lag from when it is sold to Maxi-cash and when it is sold to the customer. The disconut shop model is perhaps why it enjoy a decent ROE for its resale segment.

There is a pretty good article on Maxi-cash by Investor Central
http://www.investorcentral.org/show_text...xtid=15406

Investor Central has some pretty good articles as the founding idea behind it is "we ask the questions that need to be asked".

I am not able to access the article, probably due to access right. I will see whether i can access it via other mean.

[shanrui_91]

i don't understand much about the trader's operation as well, but they can hold up to 3 days or more. Lots of nonsense like pump and dump, accumulation which is too complicated for me to want to find out more about the exact detail.

For the investor central, you have to sign up as free member.

[wsreader]

Shanrui, u actually walked into a pawnshop? Interesting...
I always have the impression that there will be a high counter secured with vertical bars and the staff will look down at you from behind the bars. You mean the 2nd hand items are displayed out at the shop front much like a luxury watch shop? Or you mean you are invited to a special room behind the counter?

[CityFarmer]

i don't understand much about the trader's operation as well, but they can hold up to 3 days or more. Lots of nonsense like pump and dump, accumulation which is too complicated for me to want to find out more about the exact detail.

For the investor central, you have to sign up as free member.

Yes, i agree with you. The doubt probably will be cleared in the next few days Let's see

I had read the article from investor central. The points raised are mostly highlighted by you and freedom already in the forum.

---

Shanrui, u actually walked into a pawnshop? Interesting...
I always have the impression that there will be a high counter secured with vertical bars and the staff will look down at you from behind the bars. You mean the 2nd hand items are displayed out at the shop front much like a luxury watch shop? Or you mean you are invited to a special room behind the counter?

The best analysis tool is leg-work. It provides the most reliable info and impression.

I did visit few of them, whenever i have opportunity. The staffs are very professional and polite. I feel more like visiting a retail shop than a pawnshop.

[shanrui_91]

Shanrui, u actually walked into a pawnshop? Interesting...
I always have the impression that there will be a high counter secured with vertical bars and the staff will look down at you from behind the bars. You mean the 2nd hand items are displayed out at the shop front much like a luxury watch shop? Or you mean you are invited to a special room behind the counter?

yes, it is such a rare opportunity to have 3 pawnshops within sight of each other. This will obviously be where competition will be the most intense or there will be some form of tacit collusion going on.

The traditional pawnshop right beside maxi-cash is what you described as "high counter secured with vertical bars and the staff will look down at you from behind the bars. " They don't sell other stuff and they look pretty old.

Money Max seemed to be going a similar path as Maxi-Cash and they are not to be belittled since they have 21 shops and is also into branding and advertising(Mark Lee) as a modern pawn shop. Btw, "Moneymax Pawnshop is a subsidiary of Singapore’s leading jewellery retail group, the Soo Kee Group of Companies."

When I walk in, it appears a lot more like a jewellery retailer than a pawnbroker. The pawn manager or whatever you called it is stuck to his little counter at the back of the shop.

As I said, you will have thought that all those gold and silver are brand new since they have underwent repolishing according to the manager. Doubt your wife will know it if you bought 2nd hand jewellery for her

In that case, it makes me wonder why did both Soo Kee and Aspial decide to enter pawnbroking in the first place and not to focus on opening a 2nd hand/discounted jewellery dealer. Pawnbroking requires high amount of capital and the ROE is not that fantastic either.

You should take a look at the shop, it is not really that hard to find one. Just pretend that you are one of those that have caught into the gold-fever

Shareholder should question the management on why there are 3 pawn shops within 20m in Clementi.