Kingsmen Creatives

[Aspellian]

Prices rose 20% in last 2 trading sessions on higher volume. something brewing? maybe worth taking a second look.

[kanglc]

Let go some.

[grandmaster89]

I am analyzing the company and was quite interested in it for some time. Now that the share price has plummeted, I am thinking of adding it into my portfolio.

Pros:

1) Increasing revenue and net profits since 2004
2) Increasing profit margin from 2.22% in 2004 to 8.10% in 2008. Shows greater cost control and higher yielding projects
3) ROE has trebled since 2004 to 34% in 2008. The increase in ROE and ROA has been a smooth one.
4) Positive operating and free cashflow since 2004. This has allowed it to pile it its cash and remain relatively debt-free
5) Net Cash gearing
6) Dividends paid out to shareholders has been increasing yearly and the company has been reducing the outstanding shares through a share buy-back

Current PE is 7.8
Dividend Yield of 5.5%

Q4 is traditionally a strong period for the Group. I can only forsee greater upside for the company. The Management will book in a minimum of 67mil revenue for Q4 this year.

[Musicwhiz]

Latest news released during lunch hour:-

Kingsmen sign up as Youth Olympic Games event managment sponsor
Contributed by Lee Wai Leng

Thursday, February 18, 2010 – Kingsmen Creatives Ltd has joined the Singapore 2010 Youth Olympic Games as its Official Events Management Services Sponsor. The company is providing consultancy services to the Singapore Youth Olympic Games Organising Committee (SYOGOC) for venue planning sessions and preparing the drawings, plans and detailed specifications for overlay works at the sport competition venues as well as Culture and Education Programme sites.

Welcoming Kingsmen on board, Mr Goh Kee Nguan, Chief Executive Officer of SYOGOC said, “The Singapore 2010 Youth Olympic Games is an international multi-sport competition taking place in multiple venues.

“There is a need for us to ensure quality events management through venue planning, and accurate drawing is critical in ensuring that space usage at the venues is fully utilised. I am confident we will benefit from the expertise and experience that Kingsmen has to offer to the Games as the Official Events Management Services Sponsor.”

Commenting on Kingsmen’s sponsorship for the inaugural Youth Olympic Games, Mr Benedict Soh, Executive Chairman of Kingsmen, said: “We are indeed honoured to come onboard as a supporting partner to this milestone event. As a home-grown company, we are committed to Singapore and its development, even as we continue to expand our geographical reach into the region.

“Our sponsorship is thus a natural step towards our continued support for Singapore and for a worthy programme that promotes the spirit of competition, fairness and teamwork. These same values have stood us in good stead over the past 34 years.”

In addition, Kingsmen will develop and produce information panels and signage, as well as provide advertising space on the large format Out-of-Home digital screen at the newly-opened Wilkie Edge at Selegie Road.

[Blackjack]

This counter used to be a hot favourite of Kim Eng, back when the TP was as high as $1.20. For quite some time, till they gave up trying too hard to "promote" it, I'm told. Quite a high percentage of shares still held by many individuals with considerable stake, not much float. Personally can't visualise where the upside may possibly be coming from considering there are already many high stake holders waiting out. I think also important to view from other angles other than simply business prospects.
Just my 2 cents. Not vested.

[Musicwhiz]

This counter used to be a hot favourite of Kim Eng, back when the TP was as high as $1.20. For quite some time, till they gave up trying too hard to "promote" it, I'm told. Quite a high percentage of shares still held by many individuals with considerable stake, not much float. Personally can't visualise where the upside may possibly be coming from considering there are already many high stake holders waiting out. I think also important to view from other angles other than simply business prospects.
Just my 2 cents. Not vested.

Hi there,

Just curious - what are the "other angles" that you are talking about? Care to share some examples?

Thanks!

[ichew]

i believe blackjack meant to consider the idea tat there r many other ppl who had bgt a lot of kingsmen shares back when KE was promoting it.
these ppl r looking to exit ... so they will stop the rise with their selling

from AR08, we see tat there r 484 shdrs with shareholdings betw 10lots to 1,000lots
together these 484 shdrs hold abt 30,215 lots
if i assume each hold equal shares, we have each shdr owning abt 62lots

we will need to take a look at the daily buy/sell queue, n vol transacted

of cos, if kingsmen biz story can convince a big fund, then all these stale bulls will be mopped up in no time

just some other ideas for u music to ponder abt
YMMV

[Musicwhiz]

Oh I see, thanks! So you guys are referring to the ownership. Ok got it!

[winston]

there are already many high stake holders waiting out.

If the BBs wanna get out, they would be doing so on good news or a very attractive analyst report eg. "the world is your oystyer", "dont miss the gravy train" etc..

[Blackjack]

Hi Musicwhiz,

Winston and ichew pretty much got my point. Typically I like to consider things from a broader angle, though i tend to not be too deep within each area but leverage on the expertise of others out there in FA, TA, etc. (think "more breadth less depth") It makes analysis more efficient and effective as its impossible to excel in all these areas, yet its important to do so. At the same time I also believe in the saying that "over analysis leads to paralysis". (you may think I'm lazy heh heh)

I once came across a book that says man's intuition and gutfeel is often more powerful than someone who has access to every single piece of information available (an experiment that compared the former given just price charts and the latter with all info). The former class consistently outperformed.

Other examples may be like for instance, TA wise and FA wise it sucks, and market sentiments are extremely pessimistic as well, sometimes a buy can still turn out a buy if you think along the lines of what potential vultures may want to do. Or simply like why companies like Mary Chia want to list itself? (Obviously to me, just to take back money from "investors" and semi-retire and carry on the business on "best effort basis") Its just like identifying any other arbitrage opportunity itself, the investment itself may not be a buy, but it may be if you consider what can be done with it. In Kingsmen case for example, if there are many pockets of substantial shareholders with no real hold over the company, would they be happy to hold on to it for long? Do they want the yield or do they see growth beyond what they can get elsewhere? If not what other reasons for holding?