LevelUp

$DairyFarm USD(D01.SI)

Inspired by bro @wellhandy to do some sharing ....

First time sharing ... TA experts 请多多指教

28 Sep 2017: Initiated position in $DairyFarm USD(D01.SI) due to:
1) Double bottom
2) Bullish harami reversal pattern after downtrend
3) Potential MACD histogram crossover
Link: https://s3-ap-southeast-1.amazonaws.com/in...

4 Oct 2017: Averaged down

6 Oct 2017: Closed average down position

10 Oct 2017: Closed above 20MA today.
Have closed my positions
Link: https://s3-ap-southeast-1.amazonaws.com/in...

Disclaimer: Not a buy or sell call. Please dyodd.

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15 people like this.
LevelUp :

Closed above 8 today
8.10 (black dotted line) and the 200 MA (pink line) are the next roadblocks ... both of them could be tough to crack .. but we'll see ;-)

LadyOctopus :

Reply to @LevelUp : With fingers cross

LevelUp :

10 Oct 2017:
Very strong buyup towards closing today
Green marubozu and closed above 20MA today.

Congrats to those who are still holding!
Hope this turns out to be a true reversal

Note to self:
Have closed my position a little too early. Sold to UBS
Overall slight loss (including commissions)

LevelUp :

6 Oct 2017:
Closed off average down position to reduce exposure.

2V_ :

Want to see clear double bottom? Check Kep corp (vested)

LevelUp :

Reply to @2V_ : K does looks very interesting technically.
Hope T is your good friend :-)

Thanks very much for highlighting.
Looks like I'll need to add it back to the watchlist.

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durian_kia :

pardon me for high-jacking...

In TA, ppl look for patterns and signals....
if 7.25 cant hold... ... run first, ask later....

Not vested. DYODD

LevelUp :

Reply to @durian_kia : Nah, no worries at all. All are welcome.

The more I think about it, the more interesting it seems.
Interesting in the sense that we are getting quite a number of different interpretations based on the same chart.
Thanks all for the opinions so far!

LevelUp :

4 Oct 2017: Averaged down on mid-autumn festival (based on counter-intuition).

Disclaimer: Please dyodd and do not follow blindly. Not a buy or sell call.

Happy mid-autumn festival! Enjoy your mooncakes ;-)

LevelUp :

Based on my novice interpretation of the buy and sell trades, there should be funds on both the buy and sell sides.
And the funds seem to be dancing cha cha these few days ... three steps forward ... two steps back ...

Somehow trading this stock is like taking part in a cha cha dancing competition
If dance correctly with the funds, can progress to the next round of the competition (i.e. break next resistance level) and maybe reach finals (i.e. target price)
If dance in the wrong direction, will be stepped on the toes and be very painful (like today).
If dance in the wrong direction too many times, it'll be too painful to dance further and will have to quit the competition lol (i.e. cut loss)

On a more serious note, probably need to see if the support at around 7.50 or at 7.43 will hold.
Not a buy or sell call. Please dyodd and good luck!

vanlicious :

7-11 not looking good for sg market. Too pricey and online competition. Is the sg Starbucks under diary farm with mersin getting the exclusive rights?

LevelUp :

Reply to @vanlicious : Based on my simplistic calculations, the 7-Eleven chain in Singapore only contributes a small percentage (1.8%) of Dairy Farm's profits.

In Dairy Farm's FY 2016 annual report, we know they have 3,839 convenience stores.
And according to the article below, there are about 430 7-Eleven outlets in Singapore (i.e. 11.2% of their convenience stores are based in Singapore)
http://www.straitstimes.com/singapore/7-el...

Their annual report also tells us the convenience store segment contributes to about 16.2% of Dairy Farm's operating profit.
If we use pro-rate accordingly, the 7-Eleven chain in Singapore contributes to 1.8% of the overall operating profit (11.2% * 16.2% = 1.8%)

As for the SG Starbucks, Maxim should be getting the exclusive rights if I read the article below correctly.
http://www.businesstimes.com.sg/consumer/s...
The SG Starbucks are probably not a major contributor either as the Dairy Farm group is really huge.

LadyOctopus :

i mean after today's news isit still valid.

LadyOctopus :

after today's bews isit still valid?

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Recommended & Related Posts

MotleyFoolSg
Dairy Farm International Holding Ltd – 1 Simple Number To Help Investors Understand 3 Aspects Of The Company
- Original Post from The Motley Fool Sg

Dairy Farm International Holdings Ltd (SGX: D01) is a conglomerate with four main business segments: Food, Health and Beauty, Home Furnishings, and Restaurants.
In Singapore, Dairy Farm is the owner of stores such as Guardian, Cold Storage, Giant Hypermarket, and 7-Eleven.
In this article, we will try to understand the attractiveness of this business from the perspective of return on equity – ROE.
Why ROE?
ROE is a measure of the profitability of each dollar of investor’s capital when invested in a business.
For example, a ROE of 20% means that a company generates $0.20 for every dollar of shareholders’ capital invested in the business. The higher the ROE, the more profitable each dollar of investor’s capital is.
The simplified calculation that most investors use is as follows:
ROE = net profit / shareholder’s equity
Here, however, we will take a different approach to calculate the ROE:
ROE = asset turnover x net profit margin x asset/equity
Doing so will reveal to us three pillars of the company – asset management, profitability and financial leverage. For more information about this breakdown, you can head here.
With that, let’s calculate the ROE for Dairy Farm.
Asset Turnover
Asset turnover measures the efficiency of a company’s use of its assets in generating sales revenue. The calculation of asset turnover is Sales / Asset.
For Dairy Farm, the asset turnover for 2016 was US$11,201 million / US$5,129 million = 2.18 times.
This means that for every US$1 of asset employed in the business in 2016, the company generated sales of US$2.18.
Net profit margin
Net profit margin measures the percentage of sales that is left over to shareholders after deducting all the expenses.
In 2016, the net margin for Dairy Farm was US$470 million / US$11,201 million = 4.20%.
To put this into perspective, the company received 4.2 cents in net profit from every US$1 in sales, after deducting all the expenses.
Gearing
The asset/equity ratio shows the relationship of the total assets of the firm to the portion funded by shareholders’ equity. A higher ratio means that the company funds the assets with more liability.
In 2016, Dairy Farm’s gearing ratio was US$5,129 million / US$1,579 million = 3.2.
Here, for every US$1 of equity invested in the business, Dairy Farm employed 2.2 times in liability.
Conclusion
Putting all three numbers together, the ROE for Dairy Farm for 2016 was 29%.
$DairyFarm USD(D01.SI)

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Mr_R
Expiry:
Target Price
$8.03
(+4.15%)
NOW:

$DairyFarm USD(D01.SI) After recent Sell-down for this counter, Price should be stabilizing back to the 8.00 range in the short term. Long term wise, would need to evaluate if it's Core business is still able to perform.

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LadyOctopus
Expiry:
Target Price
$8.2
(+9.04%)
NOW:

Testing at support. F.A looking got... cyclical position.

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