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ruanlai Master	14-May-2007 11:47        ruanlai About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	Wow ! Another big sell down...at $1.04 2000lots........ Wan liao ! Wan Liao !   11:45:01 1.040 85,000 Sell Down 11:44:57 1.040 6,000 Sell Down 11:44:48 1.040 20,000 Sell Down 11:44:42 1.040 10,000 Sell Down 11:44:40 1.040 5,000 Sell Down 11:44:37 1.040 13,000 Sell Down 11:44:36 1.040 3,000 Sell Down 11:44:32 1.040 1,000 Sell Down 11:44:30 1.040 12,000 Sell Down 11:44:27 1.040 242,000 Sell Down 11:44:23 1.040 2,000 Sell Down 11:44:02 1.040 3,000 Sell Down 11:44:01 1.040 10,000 Sell Down 11:43:46 1.040 2,000,000 Sell Down 11:43:05 1.040 20,000 Sell Down 11:43:02 1.040 26,000 Buy Up
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ruanlai Master	14-May-2007 11:42        ruanlai About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	$1.06 -----where now..... Sure go way below $1 by lunch.....below 90cents by 5:05pm......Let's see! Those who vested do not panic......maybe will go up till$1.50......who noes...
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bkcivic Member	14-May-2007 11:36        bkcivic About Contact  Quote this Post!
x 0   x 0  Alert Admin	Resistance @ 1.06 . Seems to be strong.
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ruanlai Master	14-May-2007 11:34        ruanlai About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	There must be something happens.....Inside noe better than retails trader...... Run before calling for halt.... Na Shi Yi Que Do Wan Liao
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ruanlai Master	14-May-2007 11:31        ruanlai About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	Izzit kana CPIB or CAD probe......lao sai until no bottom.....run first...
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oil_madness Member	14-May-2007 11:27        oil_madness About Contact  Quote this Post!
x 0   x 0  Alert Admin	Check up their latest quarterly earnings. Very disappointed. Their management I believe is also not very honest in painting a very rosy picture back in February when they said the US expansion is doing very well. And that more people tune in to their channels than Superbowl. It's ok to state that but they never mentioned any problems that they may encounter. I bought last week at 1.24 but was lucky enough to exit at 1.24 this morning. Can consider myself lucky.  Not sure where the support level is. It just keep going down all they way.
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K.H.Neo Member	14-May-2007 11:10        K.H.Neo About Contact  Quote this Post!
x 0   x 0  Alert Admin	Ya what happen to it anone can explain thanks.
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nlimm78 Member	14-May-2007 10:55        nlimm78 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Hi all, does anyone knows what happen to Gems,y it plunge today to year low??
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EastonBay Master	12-May-2007 11:56        EastonBay About Contact  Quote this Post!
x 0   x 0  Alert Admin	tchiew, good article. Mind telling who wrote it? Is it from BT or ??? thks.
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TChiew Member	12-May-2007 11:19        TChiew About Contact  Quote this Post!
x 0   x 0  Alert Admin	1. Expensive valuation, in particular P/NTA 2. Growth in UK might slow 3. Expansion in new markets may only bear fruit after some time This is one of the biggest IPOs of 2006, raising >S$200M in its offering. It is quite amazing that just two years back it was loss-making and just one year back its revenue was just < US$40M and with net profit US$5M, comparable to a bigger SESDAQ or a small Mainboard stock. At the current price the stock is trading at ~35X FY06 PE and 5.5X P/NTA. Note that excluding IPO proceeds, NTA would only be about $0.06/share. The IPO managers must be applauded for coaxing so much money out of the IPO investors, whom to be fair are mainly institutions who probably know better. It is clear that investors buying in are doing so because of the phenomenal growth story of GemsTV in the UK in a short period with limited resources, suggesting that the business model is asset-light and could possibly be very scaleable and transportable to other countries with mature home shopping markets, in particular the US. Who am I to say that this is doubtful? Let's start with an examination of the growth momentum in GemsTV's core market, the UK; if growth is intact there is still something to fall back on should expansion into new markets, as planned for in the IPO, be less than satisfactory. First, we put the growth of GemsTV UK into perspective based on information provided in the IPO. GemsTV launched its first GemsTV channel in the UK, in partnership with Eagle Road Studio, in October 2004, which means for FY05 the TV revenue segment was relevant for only 8 months (excluding sales to third-party networks which I assume were not important). As Eagle Studio revenues were not consolidated, one can only work out the total value of GemsTV jewellery products sold via this channel by examining its segmental sales. In FY05 Europe (interpret UK) segmental sales was US$28M, which is probably mainly to Eagle Studio which then resells it through its TV channel. If we assume a 100% markup by Eagle Studio, a reasonable assumption looking at the kind of gross margins GemsTV made in FY06 on consolidation of Eagle Studio, total TV sales of GemsTV jewellery in FY05 was probably ~US$50M (conservatively). Annualise that and FY05 TV sales would probably be US$75M. That is pretty impressive. At the same time, it makes for more realistic comparison with FY06 revenue of US$128M; revenue growth is ~70%, still impressive of course but clearly not the fourfold increase on FY05 that the IPO figures seem to suggest. Additionally, if we assume FY05 profits were primarily from TV sales (FY04 bottomline was marginal without it) then overall annualised pre-tax profit, including the value-add from Eagle Studio, would be US$7.56M/40% X 12/8 = US$29M, where US$7.56M was the pre-tax profit earned by GemsTV in a 40-60 profit sharing arrangement (hence the division above by 40%) with Eagle Studio before the latter was acquired by GemsTV, annualised to ease comparison for 8 months' of operation in FY05 compared versus a full year in FY06, where pre-tax profit was US$42M. Again, FY06 profit growth over re-cast FY05 profit figures was still great (~35-40% growth) but not overwhelmingly so compared to the IPO prospectus representation. The purpose in all this is to describe the probable trend of GemsTV prospects in the UK, its core market. The way in which revenue ramped up upon launch was quite phenomenal, and my guess is that the novelty aspects of it as well as the vaunted reverse auction system and game format were probably very interesting to the main customers --- idle housewives all over the UK. The revenues and profits from the UK TV sales were much higher than that suggested by GemsTV's IPO figures for FY05, due to lack of contribution from Eagle Studio. When the latter was bought over and revenues/profits consolidated, FY06 revenue and profit shot up. But perhaps the UK growth might be nearing maturity. If one examines the most recent 1Q07 figures, despite GemsTV's claims of good weather causing the relatively poor revenue performance (potential viewers all enjoying the sunshine outside), the fact is that profit margins had continued to drop. In the same statement, the company said "mild weather in the UK continued into Q2 FY2007" and that "continued competition from The Jewelry Channel, one of our major competitors in UK which was launched at the end of the last financial year, may also affect our future revenue in the UK". That in itself is ominous. No wonder that GemsTV is looking to venture into new markets. A negligible amount is earmarked for upgrading of facilities in the UK market; ~40% is to be spent on expanding into the US and another 20% on entering the China and Japan markets. It could very well succeed if it manages to gain a foothold; after all it has a track record of ramping up so rapidly in the UK from what was basically nothing (which is why people are buying into it --- and these are not stupid investors). It might depend on the risk appetite of the investor and his investing horizon. If the investor is willing to take a chance, GemsTV could be huge if it succeeds in the US whose home shopping market is about 2.5X that of the UK. And it is not unreasonable given that GemsTV has already succeeded in another country (UK) with a similar culture. The 35X PE could easily be whittled down if it succeeds in breaking the US market alone. Being more valuation-focused, I myself am not inclined towards such stocks given the low NTA backing. Besides, near-term, one should not expect huge contributions from new markets. Given that the US operations, through DirecTV, only came onstream in late November 06, it may not be in time to catch the Christmas shopping season that defines the year for many American retailers (just look at Osim's Brookstone); this means that the investor has to be rather patient if he wants to see the rewards of any market expansion (say one year down the road .... too long for me). In the meantime, one really has to rely on gut feel to size up GemsTV's progress in the new markets. At the same time, everybody knows about the weakening US consumption market now. Consumer sentiment is faltering. Jewellery is highly discretionary expenditure. It may not facilitate a smooth market entry.
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EastonBay Master	12-May-2007 11:08        EastonBay About Contact  Quote this Post!
x 0   x 0  Alert Admin	lucky168, to answer your question. TVads doesn't work in Singapore becos Singapore is geographically small. One end to the other end takes only 1hour and there are shopping centres everywhere (shopping centre is never more than 15 mins drive away). So, we are 'brainwashed' to want to see and feel the product before buying.   It's appeal is more obvious in big country like US and countries in Europe. Some towns/cities are really far off and those places may not have shopping malls as readily available as in Singapore. I didn't realise how big these TVads and buying things on internet were in US until I lived there. The stuff they sell is amazing, like clothes, pyjamas, of course household items and Jewellery (which apparently is quite popular). It's everyday items. Not like the one we used to see on TVMedia which were quite 'gimicky.  It's really more convenient to buy online and/or picking up the phone and  make purchase upon watching them on TV. They have dedicated channels just for this purpose.   I read in one of the report last week, can't remember which one that GemTV is making foray into the US Market.
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arjun1524 Member	11-May-2007 23:56        arjun1524 About Contact  Quote this Post!
x 0   x 0  Alert Admin	The sad thing DBS Vickers and Credit Suisse Analyst recommended a buy immediately after the last qtr breifing. Moreove the price went when the company has announced tax rebate from Thai Govt. Weird counter.
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lucky168 Veteran	11-May-2007 22:25        lucky168 About Contact  Quote this Post!
x 0   x 0  Alert Admin	never able to understand how this kind of biz work? remind me of those TVads in Spore few yrs ago, who would ever buy the kind of stuff adv
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skyne7 Member	11-May-2007 22:23        skyne7 About Contact  Quote this Post!
x 0   x 0  Alert Admin	this kind of result... how to survive on monday?
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danielchua Member	11-May-2007 21:33        danielchua About Contact  Quote this Post!
x 0   x 0  Alert Admin	Net profit 3Q07 US$1.3million vs 3Q06 US$10.7million (-88%)
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co2oo7 Member	11-May-2007 16:24        co2oo7 About Contact  Quote this Post!
x 0   x 0  Alert Admin	master zhuge, where u heard the rumour?
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ROI25per Master	11-May-2007 14:17        ROI25per About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	when is the announcement?
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zhuge_liang Supreme	08-May-2007 14:31        zhuge_liang About Contact  Quote this Post!
x 0   x 0  Alert Admin	Got clocked on concerns about its forthcoming Q3 results that was rumoured to disappoint.
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maxliukt Member	08-May-2007 13:54        maxliukt About Contact  Quote this Post!
x 0   x 0  Alert Admin	still falling? down 0.12 today...
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jackjames Elite	13-Apr-2007 17:37        jackjames About Contact  Quote this Post!
x 0   x 0  Alert Admin	yupe, exactly, for me, eventhough I was late to invest in SPC (should have done so at 4.3 level), but thinking of the confirmed "profit of 0.35 dividend", I will go for it man... take the dividend, and see the price after the dividend payout and judge when to let go.. at least, secure some profit... that's the most gia shu way.
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