At one period, I thought of investing in Breadtalk too. Look at the queue at Ding Tai fung... and the bread is so expensive and people still buy them... I really don't understand why people will pay more than $1.50 for one floss bread.
Logically, it take more effect for them to make a bread - need to employ one baker, one counter staff to pack your bread, another cashier to collect your money when you pay for it... all these are cost... Perhaps all the money earned went to the pockets of the staffs..
The stock price has came down quite a bit and I really wonder if it will bound back as Breadtalk faced a lot of competition. What they are marketing can be copied easily.
Breadtalk today's closing price is S$0.89. Sudden shot up. What happened ?
Quote u example:
AMK hub, people come out of train going to interchange, they would like to buy bread first before taking bus home. people r lazy to go down to other shop buy like 4 leave, etc or even outside amk hub. Unless they stay S11 there. Same as people buy bread liao go out take bus or mrt. Their toast box laggi worse. Price up liao but still crowded
But northpoint 4 leve location is better than breadTalk in my view. But breadtalk on other view may hold a better view.
Tamp } straight near to escalator.
btw i not vested. but regret. Else huat if sell now
Breadtalk huat, REITs also huat.
I am not so sure. But can see their brands flying around the building. E.g., the food court will be by Food Republic.Their new building is 100% leased out right ?
BreadTalk Group: Not fully baked yet
Summary: The 12% correction in BreadTalk’s share price over the past two days has helped to temper the sudden spike from late-Mar, and we take this
opportunity to caution investors against getting too carried away. In our view, a takeover by Minor International is remote at this juncture.
Despite impressive yearly double-digit revenue growth, BreadTalk has yet to translate the success to its operating margins. Although its ongoing
expansion plans are partly to blame, the pace of the margin declines does create some concerns over its operational efficiencies in the long-run. In
addition, with FY13 PATMI and dividend growth unlikely to differ much from recent performances, we deem BreadTalk expensive at current price levels.
Keeping our fair value estimate of S$0.77, we downgrade BreadTalk to SELL and urge investors to take profit.
is this gooood???
Prepare for even lower prices ....