Profit Plunged!!! Revenue Plunged!! Focus in Indonesia in Q2? Why only in Q2 and not earlier? I thought they managed to get licences for 20 over KEY products in Q4 FY09? Q1 result poor because of CNY holiday!! Last year don\'t have CNY during Q1? Economy recovering very very strongly but BW performance continue to head south? Why is that so? Why Haio can do some much better during the same period?:laugh:
while i am a supporter of Best World but i must admit that i am greatly disappointed with its performance. Indonesia custom problem seems to be already clear and resolve during 4th Quarter last year... but there has not been much improvement from Indonesia which is one of the major market for them. The only positive thing is the slight increase in cash pile..... as well as openng of more DC in new places (some new name). Management have to prove themselves in term of bring in revenue and profit before the stock can be re-rated.
Q1 result not encouraging. Profit of $1m is surprisingly low. Good thing the cash in the bank increased significantly. Now it has $39.6 m in cash! Compare that with Best World\'s market cap which currently is $66 million, which is based on stock price of 32 cents currently. Despite a slow Q1, they will make 2010 a great year - they have to cos this is their 20th anniversary. All systems must power up - and maybe they will pay a special dividend at half-year....
Apart from not being able to turnaround the performance quarter after quarter, holding huge amount of cash (39M now!!) quarter after quarter is another reason why investors dump the share! I thought BW has share-buyback approval? Why not buy back do share buyback if performance for Q2 and beyond is going to improve?
One thing i hope Best World looks into is a dual-listing. Their business is regional and they can b attractive to HK investors, who have a better appreciation of direct-selling. And that way they can also attract HK members to join.
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