While financial performance has dropped since I bought the shares last year, I suspect it is a short term thingy. The business of coffee is quite competitive but somehow, many of them are able to play according to the rule i.e. not let the prices goes too low and in the event caused everyone to suffer financially. The Oldtown's sale is a good example as it shows that there are value for this business. I suspect the value for Oldtown comes from its ready coffee mix business rather than the coffee chain business.
I have decided to buy (as below) when it dropped as I deemed it as an opportunity.
This business is not a "moat", however I suspect Power Root has its inherent strength as well. The lower profits in the last one year is probably of its expansion costs as one can also noticed that its foreign business is now bigger than local sales.
10 comments:
the dividend yield is so high now.
WCEHB dropped nearly 15% today... time to buy more ?
can buy, my personal opinion. but this stock very long term
Hi Felicity...what are your thoughts about WCE's RCULS and at zero coupon rate ... ? Thx for sharing.
Hi GL,
Thanks. I feel it is a well crafted exercise. Just cheeky and they make it complex.
The company has no choice as they need to do fund raising. By doing it through rights it is one of the fairest method. Otherwise doing private placement it is worse. The zero coupon rate is just what it is. There is no point they issue a non-zero rated as they will not be able to pay. As in the Annual Report, it is in the process of crafting out dividend policy.
I believe in the long run after the completion of the highway, dividend MAY be forthcoming.
I apologize if investors thought that it is a short term investment.
In this investment, I would like to disclaim that I have no interest to make the investment profitable in the short run as I have always look at it as a long term investment. Its volatility in the short run has little impact. In fact, I see this as buying more.
Thx Felicity ... you are right, noticed Directors are loading up more possibly to prepare for even allocation of RCULS & warrants later ... if you would do the same ... do you have any idea when is the possible ex date ...
Yes I am doing some more purchases. Not much. More importantly to have enough to pick up the RCULS. When. As it says 3rd qtr
Yes WCE is chugging along. With IJM at the helm, I am confident that WCE is well managed.
felicity, PH plan to take over WCE if they win in the coming GE, do u think this is the risk for shareholder of Wce ?
Hi GXYZM,
There may be risks but I think the price is still way cheaper than the risk.
Post a Comment