Author Topic: RHDGF - Retail Holdings  (Read 32285 times)

accutronman

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RHDGF - Retail Holdings
« on: November 04, 2010, 09:21:29 AM »
Ran across this as a deep value play coupled with good management stock ownership so interests are aligned. Great analysis article on it here: http://seekingalpha.com/article/234623-retail-holdings-dollars-for-thirty-cents


stahleyp

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Re: RHDGF - Retail Holdings
« Reply #1 on: November 04, 2010, 09:42:24 AM »
A lot of the margin of safety is already gone. Up 30% today.
Paul

Myth465

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Re: RHDGF - Retail Holdings
« Reply #2 on: November 04, 2010, 12:16:48 PM »
Everything is slipping away. I guess value is its own catalyst.

merkhet

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Re: RHDGF - Retail Holdings
« Reply #3 on: December 06, 2010, 12:00:30 PM »
Hey, that's my article!  :)

FWIW, I'm waiting to see whether the deal for Singer Bangladesh closes or not.  If they close, then I'd expect a very quick return of capital, and depending on where the stock trades from there, it could prove to be another good investment in a few months.

(I exited the stock when it jumped to $18 since my cost basis was $11.50.  It was just serendipity that the company announced they had sold Singer Bangladesh the day I posted the article.)
« Last Edit: December 06, 2010, 01:43:13 PM by merkhet »

accutronman

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Re: RHDGF - Retail Holdings
« Reply #4 on: April 11, 2011, 12:39:09 PM »
Back in again. The decision not to sell the Bangladesh subsidiary was a good one considering the record profits they continue to make there. Considering the performance of the company over time, their stated goal to maximize value of assets and liquidate the company, coupled with their upcoming distribution to shareholders of at least $1/share makes it attractive.

From Summary Annual Report:

The Company’s net asset value at December 31, 2010, attributable to the ReHo shareholders, was $90.7
million, equivalent to $17.09 per Share outstanding. This essentially reflects the book value of the
Company’s investment in Singer Asia, the amount of the KSIN Notes and the cash at the ReHo holding
company. Using the $175.7 million derived “market valuation” for Singer Asia attributable to the ReHo
shareholders, the amount of the KSIN Notes and the cash at the ReHo holding company, the
corresponding figure would be approximately $203.7 million, equivalent to $38.38 per Share.

accutronman

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Re: RHDGF - Retail Holdings
« Reply #5 on: September 24, 2013, 12:04:45 PM »
WILLEMSTAD, Curacao, Sept. 24, 2013 /PRNewswire via COMTEX/ -- Retail Holdings N.V. (symbol:RHDGF)

Retail Holdings N.V. ("ReHo" or the "Company") announced that Sewko Holdings Limited ("Sewko"), a newly-formed subsidiary to hold Singer Asia Limited and its subsidiaries and associate companies, has today lodged with the Monetary Authority of Singapore a Preliminary Prospectus for a proposed initial public offering ("IPO") of the Sewko shares on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST"). Stephen H. Goodman, ReHo's Chairman, President and CEO noted, "This is an important step in our effort to list the Sewko shares, but there are still considerable risks and uncertainties as to timing, completion and valuation."

Here's a link to the prospectus: http://masnet.mas.gov.sg/opera/sdrprosp.nsf/936bad13609791c948256b3e001ed49f/9583B2977F9DF25F48257BF00014EBE6/$File/SIP1308003_P_Aida_Prelims(1011)C.pdf

writser

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Re: RHDGF - Retail Holdings
« Reply #6 on: March 29, 2014, 12:25:23 PM »
ReHo deferred the IPO because of bad market circumstances in Asia. Shares have been trading down a bit and are now around $19. The 2013 annual report should be coming out soon. Singer Sri Lanka had a disappointing year, earnings down by 60%Y/Y (annual report). Thailand earnings were up 40% Y/Y. Singer Bangladesh annual results are not released yet but the first 9 months were roughly in line with 2012. All these results are in local currency. Due to the emerging market sell-off results in USD are probably slightly weaker than last year.

Doesn't really matter, still looks like good value imo.

* CEO has 25% of shares outstanding and has incentive to liquidate the company.
* Market value of listed subsidiaries + KSIN notes is around $30 / share.
* History of distributing excess capital, returned around $9 /share since 2007.
* Nice bet on emerging markets.

 If anybody is interested, I made a small sheet calculating the live market value of their listed subsidiaries: link. Google docs, cool stuff.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

writser

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Re: RHDGF - Retail Holdings
« Reply #7 on: March 31, 2014, 02:38:01 PM »
2013 Results are out.

Annual report: http://www.retailholdings.com/disclosureStatements/disclosureStatementsFile_100.pdf
Press release: http://www.retailholdings.com/pressReleases/pressReleasesFile_126.pdf

Apparently Bangladesh was in political turmoil this year (something I shamefully have to admin I didn't know anything about) and Singer shops were closed in Bangladesh for "78 trading days nationwide and a further 53 days regionally". That Singer Sri Lanka was not having a good year was already known. Net profit was $7.5m as opposed to $10.3m last year but 2013 results include a $2.5m expense for preparing a possible IPO. So they managed to maintain profits despite strikes in Bangladesh, protests in Thailand, a 60% profit drop in Sri Lanka and an appreciating dollar.

One thing that bothers me is that they sell 50% on credit and that receivables in arrears are trending up. Could be attributable to the political turmoil but also a potential 'underwriting' problem.

2010: 1.9%
2011: 1.5%
2012: 2.2%
2013: 3.3%

But all in all nothing really changes the long thesis: listed holdings + control premium + notes + excess cash should still be worth ~ $30 / share. Company still growing & profitable, trying to IPO and returning excess capital.
« Last Edit: March 31, 2014, 02:59:34 PM by writser »
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

NoCalledStrikes

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Re: RHDGF - Retail Holdings
« Reply #8 on: April 17, 2014, 12:24:20 PM »
My problem with Retail Holdings is an inability to get a handle on the KSIN note.  Does anyone know what the collateral is on the loan? If SVP eventually throws in the towel on the loan, what does Retail Holdings get back?  Would Retail Holdings no longer have to pay a royalty on the Singer name?

writser

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Re: RHDGF - Retail Holdings
« Reply #9 on: June 15, 2014, 10:03:41 AM »
My problem with Retail Holdings is an inability to get a handle on the KSIN note.  Does anyone know what the collateral is on the loan? If SVP eventually throws in the towel on the loan, what does Retail Holdings get back?  Would Retail Holdings no longer have to pay a royalty on the Singer name?

No clue, but for me it wasn't really relevant to the thesis. You can discount the note 50%, even 100% and it would still be trading at a significant discount to the sum of the listed subs. Also some payments seem to come in so I'm not that worried.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.