32 replies to this topic

[DividendTycoon]

Choppies no real threat to SHP in SA... or PIK and SPP for that matter. They are also taking a beating from SHP and SPP in their home market Botswana. Have they perhaps taken their eye of the ball with the expansion push into other African countries? And I agree valuation not appealing at all!

 

Thanks for the two comments.

Choppies is still dominant in Botswana, SHP despite being there for years could not beat them, so i think this shows they are good operators. They do not need to threaten SHP etc in SA to obtain profitable lower end niche, but may take time, IMO. Valuation is high, but i have taken a small position as i like growth prospects.

For me, three things worry me about them:<br />1. How will they dislodge Shoprite?<br />2. Main markets are along commodity belt which is suffering - how much more spend can they get out of their market?<br />3. What is their USP

They do not need to dislodge them, there is a huge market. They will move beyond the mining belt and commodities may recover at some point. USP seems to be the smaller areas SHP etc not in. 

[Zero Hedge]

Choppies no real threat to SHP in SA... or PIK and SPP for that matter. They are also taking a beating from SHP and SPP in their home market Botswana. Have they perhaps taken their eye of the ball with the expansion push into other African countries? And I agree valuation not appealing at all!

[Sugafoot]

For me, three things worry me about them:<br />1. How will they dislodge Shoprite?<br />2. Main markets are along commodity belt which is suffering - how much more spend can they get out of their market?<br />3. What is their USP

[DividendTycoon]

Any new views on this? Recent results not that great, but i think there is good potential. 

 

Does anyone know the management and whether they are going to be able to execute plans? 

 

I am tempted to start buying, but the valuation seems a little rich, although perhaps the future growth will justify. Any views appreciated.

[SoleTrader]

I am hearing that they are struggling. Victims of the mining crisis.

[Queen B]

@SB45

Yeah, I agree fully. Was just a bit surprised to see the price down 10% after decent results

I topped up

[SB45]

@Queen B,

 

I don't think people were expecting a lot better, I think this depends on which side are you when it comes to Choppies. A lot of panic and short term views in the market lately, which works best for long term prospects as one is able to pick up bargains. I wouldn't worry about the market reaction to the results

 

Choppies had this challenge from the beginning, they would just have to continuously keep the decent results coming to prove themselves beyond any doubt.

[Queen B]

Choppies released their 12 months results yesterday. I thought they were pretty decent, but market hasn't reacted well.

People were probably expecting a lot better:

 

-   Turnover increased 19% from BWP 5.0 billion to BWP 5.9 billion
    -   Gross profit increased 20% from BWP 1.0 billion to BWP 1.2 billion
    -   Listed on JSE raising BWP 448 million / R 574 million
    -   Acquired Kenyan retailer Ukwala
    -   Increased footprint to 129 stores across the three markets
    -   Kenyan acquisition concluded subject to Competition Authority Kenya approval
    -   Zambian stores ready for commencement of operation
    -   Retail space grew by 25.40% to 188 849 Sq m
    -   Operating margins negatively impacted by increase in administrative expenses
 

[Rosh]

Choppies closing at 7.09 Very important for that price to be maintained

[Queen B]

I'm over the moon with my R5.40 punt

[gamma]

Took a small punt at just over 6 bucks. 

 

[Queen B]

Hah Hah SB45

I did buy it. Got in at R5.45. Just wish I had bought more

[SB45]

Queen B, don't watch it, buy it

[HendrikB]

Its a great share to buy I feel.

[Queen B]

CHP having a nice run this week

Touched R6.00 today

This is definitely one to watch

[SB45]

Not a bad at all listing, now 10 stores in Kenya, lets see how the rest of the story unfolds. :-)

[SB45]

Not a bad at all listing, now 10 stores in Kenya, lets see how the rest story unfolds. :-)

[Shi]

Fully subscribed at 490c. Listing on Wed 27 May under code CHP.

 

Also, based on a total of 1 291 628 341 Ordinary Shares outstanding at the Listing Date, the Offer Price implies a total market capitalisation of R6 329 million.

[SB45]

A staggered approach works best than diving all in

[Sac1]

I read the prospectus and I wouldn't buy this now. I have a feeling its going to tank first before going up