I don’t want to appear like as an evangelical sell-side preacher but I’m not going to spend my time looking at companies if they don’t appear to have merit in the first place. This will result in a majority of my posts representing a positive view. Nevertheless, I’ll still post information on the research I do which results in me not pursuing an idea further.
Fair Value – S$1.10, currently trading at S$0.18
Thesis
Consciencefood Holdings (CSF) was able to obtain >50% ROE prior to the IPO. I believe the business will be able to get back to similar ROE levels either through acquisitions or returning capital through dividends.
The ROE for CSF has is significantly better than peers in the food manufacturing industry. The fact that there hasn’t been a lot of corporate activity since the IPO suggests that management isn’t likely to make any rash decisions.
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