Buy @ $0.535
Impromptu decision to try to Jump-Q during pre-open…
Have been thinking and thinking since it was 40ct, even before their takeover of F&N. The main thing holding me back is their high gearing… and that's even before the F&N saga… Another thing is their earnings are mainly coming from Spirits, which is mainly being sold to low income workers…. Their Beer biz has been running at a loss. They're No.2 in Thailand (after Singha) and has little presence overseas.
One potential positive is in the Beer biz, assuming they can tap on the experience of F&N, in terms of branding, marketing and distribution. In this respect, I have noticed a bigger presence in FairPrice (NTUC) & at the coffee shop, I noticed the Bottles had gone for a makeover – it looks more attractive and less like some cheap unknown beer. Lastly, F&N had been giving out $$ through dividends and Capital Reduction plus FCL as Dividend-in-Specie. That may be able to help lower their gearing…. a bit.