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Why I believe Courts Asia is undervalued Post Reply Rate topic
pasttime Supreme	29-Jun-2018 18:04        pasttime About Contact  Quote this Post!   Yells: "gold silver are real money. not others iou."
x 0   x 0  Alert Admin	businesses like this mortar shop is impacted by competitions from the virtual shops. it is not the end of road. there are cases of success where mortar shops compete effectively with a good virtual shops with AI capability. at the end of day. consumer do not just buy on price alone. once their sale goes up. their finance business will follow. they seriously need help from the expert on the virtual shops capabilities.
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SimpleTrade Senior	29-Jun-2018 16:20        SimpleTrade About Contact  Quote this Post!
x 0   x 0  Alert Admin	I always wonder how they make money. Near my place, there is one shop and they hire so many sales person hanging around in the shop.
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NextEvolution Elite	29-Jun-2018 15:40        NextEvolution About Contact  Quote this Post!
x 0   x 0  Alert Admin	2012 IPO at 77 ct, 6 years on 20.5 ct, at historical low price... Really is a go, down the drain for this consumer retailer 2012 October: Courts Asia IPO is a go Electronics and furniture retailer has an offering price of S$0.77 per share. Courts Asia is launching its initial public offering (?IPO?) of 178 million Offering Shares at the Offering Price of S$0.77 per share, the top end of indicative price range, due to strong support from institutions during its book-building international road shows.
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sheerluck Supreme	30-May-2018 22:27        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	Wow no dividend for this year.    No longer a dividend counter.  Was never a growth counter.    Now price half of NAV so maybe can be seen as a value counter but more likely a value-trap counter. sheerluck      ( Date: 09-May-2018 09:18) Posted: it will be tough for Courts to regain market favours since all odds are against them.  They are really in a very conpetitive environment with intense competition coming from all directions. Let see if how they FY resutls are.  Mgmt already warned so expect further turbulences.    A decent dividend payout might help to hold the price above 20cts.
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sheerluck Supreme	09-May-2018 09:18        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	it will be tough for Courts to regain market favours since all odds are against them.  They are really in a very conpetitive environment with intense competition coming from all directions. Let see if how they FY resutls are.  Mgmt already warned so expect further turbulences.    A decent dividend payout might help to hold the price above 20cts.
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fundamentalhero Veteran	08-May-2018 23:43        fundamentalhero About Contact  Quote this Post! Style: Fundamental   Yells: "I NEED HONEYS AND MONIES"
x 0   x 0  Alert Admin	this company is another blood sucking company. now no share buy back. haiz. all this big fish just bully us retail investors only. can see forseeable future privatise at cheap cheap price ard 30 to 35cents.
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sheerluck Supreme	23-Apr-2018 16:37        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	Can see some investors giving up on Ciurts liao but also got some braveheart pick them up.  Brace yourself for the FY results, if only impact profit but cashflow strong, then maybe able to hold above 20cts.  If poor profit plus poor cashflow, then 20cts really at risk.
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sheerluck Supreme	18-Apr-2018 17:49        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	Profit guidance from Courts.  First time see this.  Reasons the cap in anual interet to 15% for Malaysia customer operation.  Now have to see if dividend will be affected.  No hope for share price liao.  only hope is dividend can help to buffer shareholders' losses. Can see below 20cts? YXK1234      ( Date: 21-Dec-2017 11:17) Posted: After weak Q2 results, Courts Asia fell 20% in a few weeks. Even though revenues were not impacted much, profit fell dramatically from last year. As a result, most people wrote Courts off, thinking that new Malaysian regulations like the consumer protection act and falling margins would drag Courts into bankruptcy. As a result, Courts became heavily undervalued, trading at $167 million, when its net asset value is over $200 million.  Some common arguments against Courts and why they are wrong: - Same store sales are declining rapidly and will continue to decline -> Singapore same store sales are improving and Malaysia same-store sales are likely to slow down its decrease or even stop decreasing. From September to November, ringgit appreciated against the SGD (http://www.xe.com/currencycharts/?from=SGD& to=MYR& view=1Y). I believe this should help improve same-store sales by making imports cheaper and increasing consumer confidence and thus increase consumer spending in Malaysia.  - The Consumer protection act will impact courts margins ->   The consumer protection act might impact margins a little, but in its most recent conference call, Courts CEO stated that the standard 24% rate included benefits and warranties, while the 15% rate imposed by the government is without including the effects of benefits and warranties. Decreasing interest rates will also allow Courts to be more competitive and possibly increase consumer confidence in general. - Ecommerce will reduce revenues -> This statement is true, but the impact of ecommerce is overestimated. The only items that are impacted by ecommerce are the items that are the most competitive. Most big ticket items that contribute the most to gross margins are unaffected much by ecommerce. Courts is also expanding its products to include services as well, which should help attract customers who want a higher quality product instead of quick and fast service. In conclusion, Courts is undervalued. Most people seem to think that Courts will not be able to survive in the next few years, but they have underestimated the pros of owning courts (A fast growing indonesia buissness) and overestimated the cons. Courts revenues and margins will improve and its true value will show as it works to produce cost efficiencies and as the economies of Singapore and Malaysia continue to improve. Thank you for reading! -YXK
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sheerluck Supreme	29-Mar-2018 15:51        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	SRG listed COURTS at 77cts, now price is 1/3 at 25.5cts.  Can take COURTS private super cheap liao.  Flip 3 times within 5-6 years very good results to show off to their shareholders.  But cannot come back to list in SGX anymore.  Cannot play the dirty trick more than twice. SRG still no interested or they want the price to be even cheaper than this?  Aiming for 5cts is it?  Cheapo.
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sheerluck Supreme	29-Mar-2018 11:24        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	No end to the selling. They really give shareholder a slow death.
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destinykraze Elite	25-Dec-2017 00:26        destinykraze About Contact  Quote this Post!   Yells: "Reality is only a matter of perception"
x 0   x 0  Alert Admin	If it is good and undervalued, it would as least have a decent daily volume traded. Having a 20k volume trade for 1 day says much. YXK1234      ( Date: 24-Dec-2017 15:17) Posted: Firstly, about competition. Courts CEO has said multiple times Courts is not affected much by ecommerce. He pointed out that big-ticket goods that drive gross margins are least affected by ecommerce and that Singapore is unlikely to have a high ecommerce penetration as Singapore has a good public transportation system and an integrated shopping experience. The impact of ecommerce on retail is massively overestimated and retail is definitely not dead. Courts has also started to offer a range of services (Courts GURU), which will help it to compete with ecommerce operators. For a parallel example, look at best buy in USA. Even after ecommerce nearly destroyed them in 2013-2014, they recovered and thrived by focusing on services. As for retail competition like IKEA or Challenger, they have been around for years but courts has continued to thrive. Secondly,accounting methods dont change anything about courts except how it is viewed by others, so FRS115 or other accounting procedures won' t impact the fundementals of courts. I do not know much about accounting, so I can' t comment much on FRS115 or FRS109, but I believe it doesnt impact the fundementals. Courts intrinsic value should stay the same even if it uses different accounting methods. After courts has proven itself after some time, the value of courts should be clear. At 32cts courts even with all its flaws, weakness in malaysia, competition, ecommerce, is undervalued. The risk to reward is good and if courts manages to survive, its earnings should go up considerably. sheerluck      ( Date: 24-Dec-2017 00:08) Posted: Since Courts adopted the new FRS115 standard, comparison with it earlier results became more difficult.  But there is one big revelation:  Courts now has to apply a discount rate to their customer contract to reflect their credit characteristics.  I think this simply means COURTS has to determone upfront what they can actually collect back from their customer who paid in credit/instalement.  So how much did adjustment COURTS made to reflect this?  They pretty much wiped out all their retained earning in FY15/16 and because of this, COURTS NAV dropped from about 60cts to 40cts. FRS 115 is now in effect but there is more.  FRS 109: Impairment of financial assets is coming as well.  So COURTS NAV will drop further.  By how much who knows?  COURTS total trade and receivable amounted to $500mil. No doubt COURTS is a household name but it is facing immerse competition from Challenger, IKEA, Harvey Norman, and many other shops that sells what COURTS sell.  The same can be said of E-commerce.
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YXK1234 Member	24-Dec-2017 15:17        YXK1234 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Firstly, about competition. Courts CEO has said multiple times Courts is not affected much by ecommerce. He pointed out that big-ticket goods that drive gross margins are least affected by ecommerce and that Singapore is unlikely to have a high ecommerce penetration as Singapore has a good public transportation system and an integrated shopping experience. The impact of ecommerce on retail is massively overestimated and retail is definitely not dead. Courts has also started to offer a range of services (Courts GURU), which will help it to compete with ecommerce operators. For a parallel example, look at best buy in USA. Even after ecommerce nearly destroyed them in 2013-2014, they recovered and thrived by focusing on services. As for retail competition like IKEA or Challenger, they have been around for years but courts has continued to thrive. Secondly,accounting methods dont change anything about courts except how it is viewed by others, so FRS115 or other accounting procedures won' t impact the fundementals of courts. I do not know much about accounting, so I can' t comment much on FRS115 or FRS109, but I believe it doesnt impact the fundementals. Courts intrinsic value should stay the same even if it uses different accounting methods. After courts has proven itself after some time, the value of courts should be clear. At 32cts courts even with all its flaws, weakness in malaysia, competition, ecommerce, is undervalued. The risk to reward is good and if courts manages to survive, its earnings should go up considerably. sheerluck      ( Date: 24-Dec-2017 00:08) Posted: Since Courts adopted the new FRS115 standard, comparison with it earlier results became more difficult.  But there is one big revelation:  Courts now has to apply a discount rate to their customer contract to reflect their credit characteristics.  I think this simply means COURTS has to determone upfront what they can actually collect back from their customer who paid in credit/instalement.  So how much did adjustment COURTS made to reflect this?  They pretty much wiped out all their retained earning in FY15/16 and because of this, COURTS NAV dropped from about 60cts to 40cts. FRS 115 is now in effect but there is more.  FRS 109: Impairment of financial assets is coming as well.  So COURTS NAV will drop further.  By how much who knows?  COURTS total trade and receivable amounted to $500mil. No doubt COURTS is a household name but it is facing immerse competition from Challenger, IKEA, Harvey Norman, and many other shops that sells what COURTS sell.  The same can be said of E-commerce.
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sheerluck Supreme	24-Dec-2017 00:08        sheerluck About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Work for your money first then let your money work for you"
x 0   x 0  Alert Admin	Since Courts adopted the new FRS115 standard, comparison with it earlier results became more difficult.  But there is one big revelation:  Courts now has to apply a discount rate to their customer contract to reflect their credit characteristics.  I think this simply means COURTS has to determone upfront what they can actually collect back from their customer who paid in credit/instalement.  So how much did adjustment COURTS made to reflect this?  They pretty much wiped out all their retained earning in FY15/16 and because of this, COURTS NAV dropped from about 60cts to 40cts. FRS 115 is now in effect but there is more.  FRS 109: Impairment of financial assets is coming as well.  So COURTS NAV will drop further.  By how much who knows?  COURTS total trade and receivable amounted to $500mil. No doubt COURTS is a household name but it is facing immerse competition from Challenger, IKEA, Harvey Norman, and many other shops that sells what COURTS sell.  The same can be said of E-commerce.
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YXK1234 Member	23-Dec-2017 21:40        YXK1234 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Courts has already started to change their buissness model. They have started to focus more on offering services instead of products and they are continuing to develop an omni-channel experience. I  believe they can do better than their competitors as they have more knowledge about the local market. Your point about courts being a shrinking buissness is inaccurate too as they grew 5.9% this quarter in Singapore and grew nearly 26% in indonesia. destinykraze      ( Date: 23-Dec-2017 01:40) Posted: I' m not saying that, you are going out of point. People are just saying there are loopholes in the current system and many are exploiting it. its more of a SGX problem. Courts is purely a shrinking business, unless they can change their business model. YXK1234      ( Date: 22-Dec-2017 21:48) Posted: There might be a few frauds now and then,but you can' t just accuse a company like courts asia to be part of a fraud with absolutely no evidence. Most frauds in the past came from stocks that had little substance and would have looked speculative at a glance. Courts has plenty of tangible assets and is one of the largest retailers in Singapore and Malaysia. If Courts does turn out to be a fraud, then I' ll take back my words, but now there' s no evidence that thats the case. Besides, most fraud cases are massively overstated by the media. FIY， I am from Singapore.
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destinykraze Elite	23-Dec-2017 01:40        destinykraze About Contact  Quote this Post!   Yells: "Reality is only a matter of perception"
x 0   x 0  Alert Admin	I' m not saying that, you are going out of point. People are just saying there are loopholes in the current system and many are exploiting it. its more of a SGX problem. Courts is purely a shrinking business, unless they can change their business model. YXK1234      ( Date: 22-Dec-2017 21:48) Posted: There might be a few frauds now and then,but you can' t just accuse a company like courts asia to be part of a fraud with absolutely no evidence. Most frauds in the past came from stocks that had little substance and would have looked speculative at a glance. Courts has plenty of tangible assets and is one of the largest retailers in Singapore and Malaysia. If Courts does turn out to be a fraud, then I' ll take back my words, but now there' s no evidence that thats the case. Besides, most fraud cases are massively overstated by the media. FIY， I am from Singapore.
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YXK1234 Member	22-Dec-2017 21:48        YXK1234 About Contact  Quote this Post!
x 0   x 0  Alert Admin	There might be a few frauds now and then,but you can' t just accuse a company like courts asia to be part of a fraud with absolutely no evidence. Most frauds in the past came from stocks that had little substance and would have looked speculative at a glance. Courts has plenty of tangible assets and is one of the largest retailers in Singapore and Malaysia. If Courts does turn out to be a fraud, then I' ll take back my words, but now there' s no evidence that thats the case. Besides, most fraud cases are massively overstated by the media. FIY， I am from Singapore.
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destinykraze Elite	22-Dec-2017 08:04        destinykraze About Contact  Quote this Post!   Yells: "Reality is only a matter of perception"
x 0   x 0  Alert Admin	You must be kidding, this is in the jurisdiction of SGX, not the government. Have faith in SGX? I don' t know where you are from. Check out the news of frauds and wash trades in singapore, in recent years it went completely out of control. YXK1234      ( Date: 21-Dec-2017 22:16) Posted: http://www.mas.gov.sg/news-and-publications/parliamentary-replies/2005/reply-to-pq-on-voluntary-delisting.aspx The majority shareholder of courts, Singapore Retail Group, only has about 70% of the company, so if courts is delisted at a dirt cheap price, im sure many minority shareholders would object and if the delisting is suspicious, the government would notice and take action. Please have more faith in the Singapore government. sheerluck      ( Date: 21-Dec-2017 13:07) Posted: Wait for Courts owner to cash out on the market as they did before......delist at dirt cheap price.....then come back again in a few years to rip off the market again.
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YXK1234 Member	21-Dec-2017 22:16        YXK1234 About Contact  Quote this Post!
x 0   x 0  Alert Admin	http://www.mas.gov.sg/news-and-publications/parliamentary-replies/2005/reply-to-pq-on-voluntary-delisting.aspx The majority shareholder of courts, Singapore Retail Group, only has about 70% of the company, so if courts is delisted at a dirt cheap price, im sure many minority shareholders would object and if the delisting is suspicious, the government would notice and take action. Please have more faith in the Singapore government. sheerluck      ( Date: 21-Dec-2017 13:07) Posted: Wait for Courts owner to cash out on the market as they did before......delist at dirt cheap price.....then come back again in a few years to rip off the market again.    destinykraze      ( Date: 21-Dec-2017 12:49) Posted: Courts still around? *Shocked*
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YXK1234 Member	21-Dec-2017 22:12        YXK1234 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I disagree. Courts CEO has said multiple times ecommerce won' t bankrupt courts. One example he gave was that SG is a very connected place with good public transport. He also mentioned that big ticket goods that drive margins are affected very little by ecommerce. There are many retailers around the world that are minimally affected by ecommerce (etc:best buy). destinykraze      ( Date: 21-Dec-2017 13:29) Posted: E-commerce killing all old players like Courts. It won' t be long now. Should be gone for good soon. sheerluck      ( Date: 21-Dec-2017 13:07) Posted: Wait for Courts owner to cash out on the market as they did before......delist at dirt cheap price.....then come back again in a few years to rip off the market again.
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destinykraze Elite	21-Dec-2017 13:29        destinykraze About Contact  Quote this Post!   Yells: "Reality is only a matter of perception"
x 0   x 0  Alert Admin	E-commerce killing all old players like Courts. It won' t be long now. Should be gone for good soon. sheerluck      ( Date: 21-Dec-2017 13:07) Posted: Wait for Courts owner to cash out on the market as they did before......delist at dirt cheap price.....then come back again in a few years to rip off the market again.    destinykraze      ( Date: 21-Dec-2017 12:49) Posted: Courts still around? *Shocked*
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