Food Junc   

Another potential quality FA stock. (Researched)

Food Junction is about hygenic & good food, reasonable pricing, quality and stringent management and environment setting.  These requisites are all there and for now dun see anything going wrong.  What can go wrong for it is a major food poisoning disaster connected to one of its supplies of raw food or a serious outbreak of contagious disease similar to SARS.  But this will only be temporary as they can be eradicated and I believe the management is mindful and has checks in place. 

FJ is not a get-rich-quick high growth stock due to the fact that food business is no barrier to others doing the same and many competitors out there are preventing FJ from growing as quickly.  Opening more new food courts in the right loccations seems to be the answer to growth.  However, seeing the closure of some gives me the impression of inadequate research of those locations.

Say Vic, does FJ's management touch base with the eating public thru soliciting their comments and acting on feedback with a view to improve.    Management's due concern for improvement is definitely a way to build customer loyalty, in my opinion.  I hope they do.

One's invested $$ should grow once this market stabilises, in my view. But a cornered stock like this is insensitive to external elements for as long as the company operations are not affected. Likewise, its price is less likely to move up by leaps and bounds with market euphoria.  So I am sitting tight and am adopting a wait and see approach. 

 

Yes Vic & Conga, some more ang pow on the way!  I wanted to accumulate some more but at 65 will think twice.  Got mine at 63.5.  Well, maybe just collect the divi and wait for correction to go further then buy some more  Cheers!

 

Hi Adrian,

Abit sian seeing no action.  Like FJ has gone into hibernation, ZZzzz...  I am going on leave for awhile. Meanwhile collect another angpow on 15 Mar.   My advice is don't look too hard at this counter or one can get X-eyed.  Just wait for div and hopefully capital appreciation as Victorian had indicated in his previous blog.

Hey Vic, is there a likely STi revision down in the near term, like one month's time?  There is much chatter about the Yen vs dollar that is likely to produce another correction.  Have you even a gut feel?

 

Vic, this is definitely better than FD with bank!  Cheers!

 

Hi Conga, have you been monitoring?  No trade done for whole of yesterday, none for today too, so far.  What's happening?  Is this normal?

 

FJ reports for 1st Qtr a net profit of  S$1.7M. (Profits attributable to share holders)

Declares interim dividend of 1 cent per ord. share and special div of 0.5 cent per ordinary share.

Earnings per share - 1.44 cents.

Opens first foodcourt in Hefei in Anhui Province, China.

Second food court in Beijing's Season's Place Shopping Centre.

Other expansion plans afoot.



The

 

Will be monitoring closely today

 

Poised to jump?

 

Hey Vic, no trade done at foodie counter today.  Any idea what's happening?

 

Good for you.  I only started going in at 63.5  Will wait for further price dip then going in for more!   Then sit and wait for the dust to settle and like you said ride on the next wave with the BBs!! 

 

Hey Vic, honestly what's a ONE cent drop compared to other counters???  So did you get any as you had mentioned? 

 

This bearish market has revealed some of the stocks that can witthstand storms!!!! I am vested and intend to add more if it drops :)

Btw heard from another forum when FJ mailed you the Annual Report got a $8 FJ voucher inside so we should count that on top of the dividend they gave and that is very attractive. It is indeed a FD + food voucher machine hahahhahaa......

 

This baby still holding on strong at 64.  Lovely, lovely..................

 

Hey Vic, so far so good.  Me too like Conga and yourself collected some decent 'red packet in dividend'.  Ok what happens when say the bird flu gets out of hand, turns real nasty?  This counter will bear the brunt of the onslaught won't it?

 

Hey Vic,  Gong xi fa cai.  My 30 lots had earned me a small red packet in div.  Not bad at all.  Initially, I thought I will be holding onto a loss making counter.  Seems like this stock is rock solid seeing it not going down in price despite the global purge.  Thanks to you man.  What is next other than the next div in May?  After the DJI 120pts down will FJ still hold at 64 cents?  If it does then I am going to load up some more.

 

Speechless.............like I said earlier, go eat something at the food courts............Hahaha!

 

actually the 20% sales tax was denied by the officials, then again who knows what will be next.  however, if this is implemented eventually, it will affect us all. considering how connected all the markets are now, and how almost every company now buys something from China whether directly or indirectly.

 

Spot on, Vic!  What more need I say???   I'm going to the Food court for some real food!  Hehe

 

no matter what.. tomolo most likely wil drop.. however can consider to buy few days later.. no matter how much u research also no use in correction of fear..

 

victorian,

ref your comments on FJ and 2nd Chance..why FJ has not gotton out of the bear phase?....I suspect its due to the ndustry its in...i.e. Food Industry and this industry  (especially the segment its in) is less subjected to economic cycles. In fact, in economic downturn, the lower end food operators sometimes see an upturn in their business....cos ppl got less $$ to spend...so they downgrade from restuarants to fast foods (incl food courts).

Wheres, 2nd Chance...its a property play and property bears have come out of hibernation. SMB?? same thing...construction play (niche segment...electrical)..and with property boom, construction will benefit.