FJ Benjamin    Last:0.01   -

Powering up

Break out nicely from recent downtrend line.... next strong resistance will be 0.65, which used to be v strong support. Most indicators like MACD moving up. :)

Main worry as usual is the low trading volume on this uptrend......

 

An update on the chart of FJ...this counter did well to reverse a 4 days consec black candles. Now, expecting a bottom to form before taking out the resistance at 0.625 - 0 635 region.

Cheerz. :)

 

zujzuj,

Yes, the eps of 5.07 cts for FY 07 is fully diluted as of 30 Jun 07. However, expiry of warrants was in July07; so there may have been some last minute conversions. If you look at 1Q08 figures, the issued shares is 564 mil.

My concern with FJB is whilst it is aggressively opening stores resulting in healthy topline growth, the bottomline is not showing the proportionate performance. If you look at its expenses, it is rising quite quickly........rent?? and others?? Company certainly is not enjoying the 'economies of scale' touted in the chairman's statement in its latest annual report......but, lets see the results of 2Q08. Hence, I reckon FY08 net profit (excl extraordinary) should come in around 19 mil.......(1Q08 was about 4mil)......divide that by 564 mil shares, eps is 3.37 cts.

Certainly, the SJP is something that will boost its bottomline. Currently, their investment is $2 mil and the RTO of JK Tech values the investment at $32m (based on JK take over price of 17.55 ct)....which gives it a net profit of $30m ==> eps 5.3 cts. Of course, this profit will be higher if JK price goes higher.

One caution is.....with the intro of Catalist, will it affect the JK Tech RTO?......Also, has the midas touch of Peter Lim somewhat faded???? aka Rowsley? 

As for TA......as you know, I am a novice in this area....but even so, it does look bad.....as with the TA for almost every other stock.

Personnal opinion......

 

Hi sh player... Thanks for pointing it out. I agree with you that the orange grove sale is a one time gain but the EPS of 5.07 is based on fully diluted number of shares. I got this figure from the Financial Report 2006/07. Anyway, I noticed that you are also v in touch with this counter...are u vested too ? I took a look at the chart just now...TA wise, it's really quite ugly..

 

zujzuj,

Just a comment on your assumption of 'flat EPS for FY2008'.

If co has flat FY08 operational earnings, then EPS will not be 5.07 cts cos:

1. FY07 earnings included a one time gain on sale of its Orange Grove asset.
2. Issued shares at end of FY07 (30 Jun07) was 423 mil and at end of 1Q08 (30 Sep07) was 564 mil.

To achieve eps of 5.07, it will have to report a profit of approx 28.5 mil. FY 07 net profit (excl exceptionals) was approx 16 mil.

 My estimate of FY08 EPS is about 3.4 to 3.8 cts........based on profit 19mil to 21mil

Personnal opinion....caveat emptor

 

The capital reduction doesn't involve any cancellation of shares. So basically, with the price at $0.575...it's definitely a great catch !! PE has definitely drop to a comfortable level as compared to few weeks ago when it was trading at 0.80 plus. Assuming a flat EPS for FY2008 (EPS of 5.07 cents for FY2007), current price of $0.575 will only be trading at 11.3X PE !!! So basically, what I did today was to "reinvest" the capital reduction money back into the counter by buying more today :) FA wise, moving ahead, a weak US$ will be good for this counter as it mainly pays US$ for the goods it carries and earn the strong regional dollars as income. Plus with the expected growth of the tourism industry in our region, F1 and RTO St James in 2008, I am very confident of the growth of this company.... TA wise, the picture isn't as bright. Having gone below $0.63, it now has a "lower lows" relative to 17th of Aug, 2007. However, personally I think TA is not a good gauge for this counter due to its low trading volumes. A big buys up of 200 lots can easily move it up a few bids at one go. Not forgeting, this company has in place a share buyback mandate which allows it to purchase its own shares from the open market to buffer the market volatility. In fact, I expect to see some shares buyback within a few days if STI continues to head southwards.

 

Just to clarify. For the capital reduction in this case, it does not involve cancelling of shares right? Its payout will be $130 per lot an investor hold? It seems too good to be true given the current situation. Any comments?

 

Now FJ shares is CE according to my poems web, so what's the duel? Isn't this the 0.13 cents?

Those Biosensors shares holder will be very happy to get their CE too.. hehe..  

 

Before it went XD, the margin was less than 15% I think. 

 Anyway, theres no catch lah. Once in a while there will be things like this and sometimes after you bought it at CD, its price at XD will drop more than the dividends.
 

 

FJ distributing $0.13 in cash for each share.

Does that means 1lot you'll get $130 in cash? That's 18% of it's shares price now, sounds too good to believe. what's the catch?

 

shplayer,

Thanks for the advice mate. Appreciate it.

 

revenant,

From FA perspective, it is logical that the share price will adjust upon xd or ex cap reduction. This is because the Co. is paying $$$ to its shareholders resulting in less cash in its coffers => reduction in its NAV => intrinsically the shares are worth less at that point in time.

From my observation, if all things remains unchanged, in the majority of cases, the correction in share price after xd is usually more than the payout. I think this could be due to shareholders who held on for the payout selling out.

 

shplayer,

 I suppose thats one of the rule trader used? Bought when the company announced its dividends, when the company go XD, hopefully try to sell as close to the buy price as possible to earn the dividends?

Is that that tactic that cause this type of "auto adjust" after XD?

 Thanks.



 

 

tfk333,

All things being equal, the share price will adjust accordingly when the counter goes xd or xcr.

 

Hi, I am new to shares trading and need some advice from seniors in this forum. I read today that FJ Ben will be distributing cash of $0.13 per share. Can anyone enlighten on how the share price will be affected post distribution? Will it be akin to dividends payout whereby share price will drop by the same margin or thereabouts?

 

Assuming that it can achieved a EPS of 4cts (average of 1cts per quarter) , at current price PE is about 20. Based on 4cts EPS, that is a pretty high PE ratio. However I know very little else about the company such as its long term outlook. Unless its long term outlook is outstanding I think the price is not sustainble.

 

FJ's results are out !

See this "The Group?s Balance Sheet remains strong with cash of S$110 million against total borrowings of S$32 million."

Earnings per share (fully diluted) is 0.71.... and it is now trading at only $0.795, which included confirmed 0.13 cash back.

"Despite Q1 being traditionally a low season for the retail industry and the increase of GST in Singapore from 5% to 7% in July 2007, the Group posted an operating revenue of S$81.9 million for the quarter ended 30 September 2007. This was a 43% growth over the same period in 2006"

Any FA gurus to comment on its results ?

Plus St James RTO n F1 ...this is gg to be my golden egg....

 

Hi, Joshconsultancy,

Check the Document below on FJ B web side (2007-10-05)

CIRCULAR DATED 5 OCTOBER 2007
THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.
If you are in any doubt as to the course of action you should take, you should consult your stockbroker,
bank manager, solicitor, accountant or other professional adviser immediately.
If you have sold your ordinary shares in the capital of F J Benjamin Holdings Ltd, you should
immediately forward this Circular and the Proxy Form enclosed with this Circular to the purchaser or to
the stockbroker or other agent through whom the sale was effected for onward transmission to the
purchaser.
The Singapore Exchange Securities Trading Limited assumes no responsibility for the correctness of
any of the statements made, reports contained or opinions expressed in this Circular.

APPENDIX 1

INDICATIVE TIMETABLE

The following are the indicative dates and times for the Proposed Capital Distribution(1).
Last date and time for lodgement of Proxy Forms for the
EGM(2)
: 27 October 2007, 3.00 p.m.
Date and time of the EGM : 29 October 2007, 3.00 p.m.
Expected date for Court approval of the Proposed Capital
Distribution
: 29 November 2007
Expected Books Closure Date for the Proposed Capital
Distribution
: 19 December 2007, 5.00 p.m.
Expected Payment Date for the cash distribution : 8 January 2008

Therefore, I stated as "I Think.."

 

Hey wjlindr, how did u conclude on 19 Dec? I have been keepin tabs on the notices but didnt see any mention of this date ha. The CB not even out yet sigh....

 

2007-10-04 EGM NOTICES

F J BENJAMIN HOLDINGS LTD
(Incorporated in the Republic of Singapore)
(Company Registration No.197301125N)
NOTICE OF EXTRAORDINARY GENERAL MEETING
NOTICE IS HEREBY GIVEN that an EXTRAORDINARY GENERAL MEETING of F J Benjamin Holdings Ltd (the "Company") will be held at Lavender Room, Level 3 Orchard Hotel, 442 Orchard Road, Singapore 238879 on 29 October 2007 at 3.00 p.m. (or as soon as practicable immediately thereafter following the conclusion or adjournment of the AGM of the Company to be held at 2.30 p.m. on the same day at the same venue) for the purpose of considering and, if thought fit, passing the following Resolutions, of which Resolutions 1 and 2 will be proposed as special resolutions, and Resolution 3 will be proposed as an ordinary resolution.


Resolution 1: Special Resolution
The Proposed Capital Distribution
That, pursuant to Article 54 of the Articles of Association of the Company and subject to the confirmation of the High Court of the Republic of Singapore:
(1) the paid-up share capital of the Company be reduced by the sum of up to S$74.0 million and that such reduction be effected by returning to the shareholders of the Company S$0.13 in cash for each fully paid-up ordinary share in the capital of the Company (each, a "Share") held as at a books closure date to be determined by the Directors; and
(2) the Directors and each of them be and are hereby authorised to do all acts and things and to execute all such documents as they or he/she may consider necessary or expedient to give effect to this Resolution 1 (including without limitation to the foregoing, to negotiate, sign, execute and deliver all documents, approve any amendments, alterations or modifications to any document (if so required)).
.........

2007-10-30

The Directors of F J Benjamin Holdings Ltd (?the Company?) are pleased to
announce that at the Annual General Meeting (?AGM?) and Extraordinary General
Meeting (?EGM?) of the Company held on 29 October 2007, all resolutions relating to
matters set out in the Notices of the AGM and EGM were duly passed.

 

***I think that each share holder will get 13 cents on 19 DEC 2007..***