That's possible...

But one must also consider the fact that...

this stock is no ordinary 'run-of-the-mill' counter...

I am sure the boys will be more 'kanjiong' to get their hands on a share of its exciting future...

Thus, if they play it too safe, they may well stand to lose out on the goodies... :)

1. FUTURE PER OF 8.77X
2. CORRELATION OF LOTTERY COLLECTION ? 6.5%


Take note of this clause [i]6.5% of total lottery collection[/i], meaning $60M assumption in the above is a minimum to be delivered, profit can be even higher, this is BIG, BIG ADD-POINT to Ban Joo, huge PROFIT waiting, meaning the sky is the limit
In Lottvis case, Lottvis only provide the Infrastructure Vending Machine, nothing about a share in the lottery collection.

"All-Points is a pioneer in China's internet and mobile technologies. It was recently awarded a licence by China's Finance Ministry to operate the country's first paperless welfare lottery. All-Points will receive 6.5 percent of total lottery collections. "

Question:
Is PER of 8.77X at 24cts good buy now?

 

Cheers,

Boon Kwan

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Singapore's Ban Joo to buy 51 pct stake in China lottery [size=7]solutions firm 6/5/2007 4:26:00 PM[/size]
SINGAPORE (XFN-ASIA) - Textile maker Ban Joo & Co Ltd said it has agreed to buy a 51 pct stake in Chinese consultancy services firm, Shanghai All-Points Investment Management Co Ltd, for 54 mln sgd in an all-shares deal. Shanghai All-Points is preparing to operate a paperless lottery service in China.
Ban Joo said that under the terms of the deal, it will issue shares to Diamond Sky International, owner of the consultancy company that is being injected into a special purpose vehicle (SPV), in order to facilitate the deal.
Ban Joo said it will initially issue up to 90 mln shares at 0.20 sgd each to Diamond Sky.
An additional 90 mln shares at 0.40 sgd each will be issued to Diamond Sky if the SPV to be registered as a wholly-owned foreign enterprise in China achieves net profit of 60 mln sgd within three years.
At 4.16 pm, Ban Joo was up 0.04 sgd or 26.67 pct at 0.19 with 156.79 mln shares traded
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Ban Joo diversifies into Chinese lottery market
By Loh Kim Chin, Channel NewsAsia | Posted: 06 June 2007 1932 hrs
Singapore-listed Ban Joo is diversifying into the Chinese lottery market. The textile and household fabrics distributor has acquired a 51 percent stake in Shanghai All-Points Investment Management.
Ban Joo did not indicate the value of the stake. However, it said the acquisition would provide it with a foothold into the fast growing China lottery market, estimated to be worth US$10 billion.

All-Points is a pioneer in China's internet and mobile technologies. It was recently awarded a licence by China's Finance Ministry to operate the country's first paperless welfare lottery. All-Points will receive 6.5 percent of total lottery collections. - CNA/ch

 

 
Assuming today paid up capital and Ban Joo guarantee profit of $60M is divided equally by 3 years, meaning $20M annually, that will be an EPS of 2.735cts per share.
Guarantee profit for 3 years, S$60M divided 3years = S$20M annually
S$20M divided 731M shares = 2.735 cts per share = EPS
Current Price 24cts, forward Price Earning Ratio (PER) of 8.77 X
Some other popular local companies for comparison:
At 94cts, based on most current profit available, Genting International is trading at today PER of 43.52 X
At $3.50, based on most current profit available, Singtel is trading at today PER of 15.11 X
At 27.5cts, based on most current profit available, Baker is trading at today PER of 88.33 X
At $23.30, based on most current profit available, DBS is trading at today PER of 13.24 X

We can safely use this as a benchmark, as Ban Joo has profit guarantee, unlike Lottvis no profit guarantee.