FOOD EMPIRE

No S$1.00, no sell.
This looks like Super a few years ago when it was 40 cents. Super now almost $4.

Mr Reck: Super is now almost....$5!

Where is Food Empire? If the 1Q results don't surprise on the downside, it should be re-rated. $1? Shouldn't be a problem.

First, to catch up with Super in terms of valuation. Second, to reflect the expanding gross profit margins. Well, I expect margins to widen because the costs of coffee, sugar and non-diary creamer have all been easing and easing.

Trying to catch up with big brother Super?
Food Empire +4.5 cents today = 72.5 cents. :side:

Once again, I am reminded of the risks of buying into high PE stocks. Look at Super. It has fallen from high of $4.85 on May 13 to $3.77 now. Even now, the PE is quite intolerable to me, at 25X.

Food Empire has dipped but gently. From high of 72 cents on May 22 to 65 cents today. About 9.7%.

PE is 12.8X

OSK-DMG TODAY:

The Day Ahead…

Scoop of the Day: We are hosting our bi-annual ASEAN Corporate Day today and tomorrow, featuring almost 50 companies from across the region. Singapore,
will as usual, see the largest number with 19 companies (home court advantage).

There is a good representation from across the following sectors: offshore & marine (Marco Polo Marine, MTQ, Nam Cheong), consumer (Eu Yan Sang, Food
Empire, Sino Grandness), construction (King Wan, Pan United, Tiong Woon), technology (DMX, Neratel, Silverlake Axis, StarHub, UMS, Venture), plantation
(Golden Agri, Bumitama Agri) and REIT (AIMS AMP, Fortune).

Our roving
analysts will be out on the field (I mean Fullerton Hotel) to bring you the latest
news and updates on these companies.

Super's 2Q gross profit margin shot up from 35.7% to 39%. This is significant given the big volume sales they do, and translates into lots of dollars.

The GP margin for Food Empire should also go up. When are its results going to be released?