What a revelation! On 13 May 2019, after a probe by SGX RegCo, Best World finally revealed that Koh Kim Chuan, the legal representative and shareholder of Changsha Best, is the brother-in-law of the Group’s CEO and Managing Director.  Currently, Best World shares are suspended from trading and hapless investors are once again left high and dry. In recent years, corporate governance issues had dogged numerous SGX-listed companies like Yuzoo, Noble Group, Midas and the likes. Even blue chips like Keppel Corporation are also not spared (Keppel was fined a whopping $560 million by US authorities in 2018 over corruption scandal). Against this backdrop, I am not surprised if Best World turns out to be yet another falling knife. It seems to be disaster after disaster for SGX-listed companies,

A summary of Best World International Limited's (SGX: CGN) initial response to the short thesis by Bonitas Research.

Will Best World do a Hyflux? Investors of Best World must be horrified as the counter collapsed from a high of $3.30 in February 2019 to the current $1.62. Within the span of two months, Best World share price plunged by more than 50%. Both Best World and Hyflux were founded by female business leaders, namely Doreen Tan and Olivia Lum respectively. Incidentally both are home-grown companies facing some sort of troubles lately. Nonetheless, the similarities ended there. Let’s take a look whether Best World is a falling knife in the making. For the records, Best World is a Singaporean company that specializes in direct selling and franchising of premium skincare, personal care, nutritional and wellness products. It is definitely not an S-chip company awaiting to implode. Many investors ma

The Dow Jones Industrial Average (DJIA) climbed to 26,656.39 on 23 April 2019 which is not too far away from the all-time high of 26,743.50 achieved in September 2018. Despite all the talks of an imminent recession, US companies continue to deliver decent results for the first quarter. Over the last two weeks, DJIA gained 1.2 percent finishing at 26,462.08 while the S&P 500 and Nasdaq Composite reached record territories before giving up some gains. Nevertheless, the Chinese markets were quick to take profits as investors worried that the Chinese government may refocus on structural reforms instead of offering stimulus measures after it claimed better-than-expected economic growth. Last fortnight, Shanghai Composite Index slipped 3.2 percent ending at 3,086.40. On the local bourse, Bes

Best World International Limited (SGX: CGN) has been one of the best-performing stocks. However, investors should still be aware of business risks that the company faces today.

With reference to my 19 Sep 2018 write-up (click HERE), Best World has appreciated approximately 147% from $1.35 on 19 Sep 2018 to touch an intra-day high of $3.33 on 13 Feb 2019. At that time, Best World has dropped out of my watchlist after its incredible rally. However, with its recent 47% tumble from its all-time intra-day high $3.33 on 13 Feb 2019 to trade $1.76 on 12 Apr 2019, it seems interesting again. Is this a buying opportunity or falling knife?   Why is it interesting? a) Valuations are more attractive now Based on Bloomberg (see Table 1), Best World trades at 10.8x and 11.3x FY19F and FY20F earnings respectively. This compares favourably with the sector average of 17.1x and 14.2x FY19F and FY20F earnings respectively. Its 10.8x FY19F earnings is also low vis-à-vis its 10-y

Best World International Limited (SGX: CGN) is one of the three companies to buy back its shares this week.

I've been keeping it inside my (war)-chest for a long time now.And finally I've got to just let the cat all out of the bag today.Retiring in Singapore demands a high level of both savings and income and this needs to be at least in the 8 digits figure. If you are short of that, you better get your way around working until retirement before thinking about the time you can do with retirement.I mean just look at the Me & My Money Series sections over the past few weeks and you get the idea.Folks are aiming high to become a multi-millionaire and they are stretching themselves by getting there earlier and faster.Investing in equities has been one of the most riskiest, silliest and slowest decision an investor could ever make. I mean think about it this way. You put a large sum of capital in

A quick analysis of the quality of Best World International Limited's (SGX:CGN) earnings.

Best World International Limited's (SGX:CGN) share price has been on a roller-coaster run. Let's look at the key developments and what investors should do now.

High flying stock, Best World International Limited (SGX: CGN) continues its recent run of growth.

Before Best World stock announces FY 2018 results, Ein55 students could project this positive results many months in advance as the company hassustainable growing business. So, Best World management is smart to announce the corporate news (reply to Business Times) before good 2018 corporate results. When the fear is gone, as long as global stock market is strong, Best World stock has chance to recover again above $3/share as most people are greed & fear driven in stock market. Valuation of Best World stock is not so much based on asset approach (unlike property or bank stocks), it is more on future earning capability, as well as 10X market potential in China. Currently both China and Taiwan markets contribute to bulk of earning. Best World stock has recovered in share prices

Sales of DR’s Secret in China: Best World’s best-kept secret? The Business Times on 18-Feb-2019 morning published an article titled “Sales of DR’s Secret in China: Best World’s best-kept secret?” (link) which sent the share price of Best World International down nearly 17% in about 2.5 hours after market open, followed by a trading halt for […] The post Best World’s Response to the BT article appeared first on SGX Observer.