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"Singapore-based engineering group specialising in the design and engineering of firearms-training facilities"
South-east Asia and Middle East markets
? very curious on the biz!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Wonder is it the contractor that built Multi-Mission Range Complex (MMRC) for SAF?
The profit margins looks good - economic moat?
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I thought the valuation is not too demanding compared to some other recent IPO. Their NPM is good so probably PE is a stronger indicator.
It said it doesn't have major competitors in their business. I take it that's also because the market is quite small. May be good. May be bad. Hard to say.
I am not so optimistic about doing business in ME. From what I read, it is tough. Payment term can be unfavorable.
Half of the net proceed ($7mil) is going to acquire property, ie no income from this. $5.7mil for working purpose. From their B/S current trade and other receivables and contract work-in-progress both increased quite a lot. Hope is short-term cash-flow issues and not turned into bad debts.
Order book enough to last for one year. It doesn't seems to me it is going to explode.
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I noticed that Starburst brought in 2 key men from Advanced Interactive Systems(AIS), which filed for Chapter 7 bankruptcy in 2013, to spearhead the company's expansion in the ME. I did a google search on AIS and noted that they are in the same sector as Starburst, providing specialist training solutions to military, law enforcement and security organisations around the globe.
From the prospectus, Mr. Samer Sidani was appointed in 2013 as the Chief Executive Officer — Abu Dhabi office and he has been responsible for the management of Starburst Middle East as well as sales activities and project management in the Cooperation Council for the Arab States of the Gulf. Mr. Sidani began his career in 1998 when he joined Patchi Silver Factory as a production manager for factory products. In 2000, he joined Zublin-AG as area manager and was responsible for the management of various built projects and held that position until 2005.
From 2006, Mr. Sidani was a project manager with Advanced Interactive Systems Limited and was responsible for the management of various built projects and was subsequently re-designated as general manager — business development in 2011. Mr. Sidani was responsible for sales and marketing and held this position until 2013, and joined our Group thereafter. Mr. Sidani graduated from the Lebanese University, Lebanon with a Degree of Higher Studies in Architecture.
In 2013, Mr. Andrew Popplewell was also been appointed as regional director and has been responsible for technical and project management of all projects in the Cooperation Council for the Arab States of the Gulf. From 1996 to 2000, Mr. Popplewell was a project manager at Woodhouse, UK and was responsible for the management of various design and build projects. Subsequently, Mr. Popplewell was a design and construct co-ordinator at Galliford Midlands UK from 2000 to 2002, and was responsible for the design and management of private finance initiative new build projects. From 2002 to 2003, Mr. Popplewell was a design manager at Galliford Rail, UK and was responsible for the design and management of design and build projects for rail projects.
Mr. Popplewell then joined Advanced Interactive Solutions Limited as a project manager in 2004, and was responsible for project management of design and construction projects. Mr. Popplewell was subsequently promoted to senior project manager in 2005. Mr. Popplewell held this position until 2010 and was re-designated as an operations manager having technical oversight and management of design and construction projects. Mr. Popplewell held this position until 2013, and joined our Group thereafter. Mr. Popplewell graduated from the Coventry University, UK with a Bachelor’s Degree in Civil Engineering (with honours) and, subsequently, a Master’s Degree in Civil Engineering.
So Starburst has Mr Sidani who is familiar with sales & marketing to spearhead the business development side and Mr Popplewell to look after the project management portion to handle the ME business.
In addition, both of them are on a performance bonus scheme whereby they are entitled to a performance bonus to be paid on a quarterly basis, subject to statutory deductions. The performance bonus is calculated based on a 10.0% commission on the net profit of all projects undertaken by Starburst Middle East once a sales target of US$500,000 (or the local currency equivalent) is reached. I am pretty sure Starburst has not built up a name for themselves in ME as compared to SEA so a 10.% commission on NPAT in ME's projects looks to be a reasonable arrangement between Starburst and the two executives. With this financial incentive, I am pretty sure they will work hard to secure and execute projects, minimising cost overruns and delays.
I applied for this IPO and hopefully i can some some lots.
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With due respects to everyone, I'll probably give it a miss during IPO and might buy during price stabilization.
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