Chews
Chew is an exciting story, abeit a boring business. This stock was in my watch list for a very long time due to its easy to understand business, impressive profit margin, low debt and good cash flow. I held off buying the stock as it had just recently divested it's chicken farm in lim chu kang, and is holding on a huge pile of cash. It's pe ratio appeared cheap but I wanted to monitor it's usage of its capital and future developments before cashing in. A monopoly in eggs in sea cucumber in Singapore counts very little as there are much more cheaper alternatives in neighbouring countries such as seng choon in Malaysia. The nature of Singapore's high land cost and poor economics for poultry rearing made its long term economics highly uncertain. Sure, dangui and codecyps eggs sound cool, but there are not a required input in most dishes, and from a cost perspective they are simply unable to compete with rivals with lower costs of production. Unfortunately, speculators ha