Disregarding emotion based investment ideas, Parkson Bhd seems to be one of the better stock since March 2014.
Some may disagree but continue reading.
(Note: Everything below is investment in Parkson Bhd starting early 2014)
Parkson Bhd has been one of the highest dividend yielding (stock dividend valued at NTA) stock. It would have paid out 17.978% of stock dividends by 26/03/2015.
In other words, your holdings would have increased in that percentage based on the number of shares owned.
E.g. in monetary value;
Previosly,
1200 shares purchased at RM2.50 = total RM3000.00
Now (after 3 stock dividend give outs)
1415 shares valued at RM2.50 = total RM3537.50
Hence, RM537.50/RM3000.00 x 100%
= a gain of 17.91% in Ringgit Malaysia.
[Calculations are absent costs. Additionally, all odd shares should additionally earn future cash dividends]
Parkson Bhd is selling less than Net Tangible Assets (NTA), which increased further (above RM2.50) due to the RM300,000,000 plus total cash raised from property disposal & latest reinvestments in properties i.e. Melaka project. Companies that sell lower than their assets while still running a profitable business tend to usually reward investors in the longer run with inevitable asset sales trickling into investors pockets.
Parkson Bhd is diversified in retail and do not hold any manufacturing risks, just profit/loss risk from selling other brand's merchandise via their extensive (China >60%, Malaysia >20%, Indonesia, Vietnam, Myanmar) distribution channels.
[Getting brands and promoting brands is Parkson's core model]
Parkson Bhd is the controlling holder of operations in all of its operating countries. Parkson Retail Asia and Parkson Retail Group to a large extend bear all risks of future operations.
In other word, Parkson Bhd just owns a lot of cash, assets and rights to lots of dividends.
Should somehow Parkson become redundant, they can sell off their assets (maybe to Aeon) and perhaps venture into property development (previously ran) or buy a few Oldtown Bhds (Currently, Parkson Bhd has enough cash to buy Oldtown Bhd and still be left with a couple of hundred million ringgit to spare).
If you noticed, there has been an indicator to Parkson Bhd's share price for the past 6 years which has not gone wrong up to date. The latest last indicator would suggest a price of RM2.90 and above by 2nd half of 2015.
[This is a self conducted research based on 6yr past statistics. The price above is post-adjusted for the latest 20:1 share dividend]
Parkson Bhd's price have plummeted largely as due their 5 year revaluation plan (now turning into a lifestyle mall operator), PRC's austerity drive, increased new loss making stores, temporarily closed stores, being biased in sympathy to Lion Group that is separately owned & listed, higher competition from brick and mortar competitors and online, not having any self produced brands, dull customer reward system, all in all maintaining an old established brand in a new retailing scene.
However, reading Mr. Cheng Heng Jem's review should enlighten those whom are too busy speculating as to Parkson's future found in Parkson Retail Group Ltd's latest report under title; (scroll to page 13)
MANAGEMENT DISCUSSION AND ANALYSIS
BRAVING THE CHALLENGE
[ http://www.parksongroup.com.cn/upload/201502/142373042954029200.pdf ]
Consider changes that have been made in the past 1 year found in Parkson Bhd's latest interim report page 8.
BANKS RESEARCH REPORTS
Please be cautioned, banks that provide reports on companies have conflicting fiduciary duties inherent to them trying to sell their investment products as such unit trust instruments whilst trying to provide unbiased reports for successful individual retail investing.
[More on Research Reports, Parkson & others];
Part 1 http://iliveidreamitranscend.blogspot.com/2014/08/research-report-rr-it-is-recommended-as.html
Part 2 http://iliveidreamitranscend.blogspot.com/2014/08/research-report-parkson.html
Further consider the valuations worldwide in 2015 i.e. Twitter/Tesla. They are valued rather substantially considering their little or no profits nor sufficient asset backing.
Should anyone be able to find a better value company (qualitative & quantitative), please generously share your findings.
Thank you & happy investing.
