Maxi-Cash

Maxi-Cash: Prices has been attempting to retest the strong resistance of $0.445. A potential break of those levels could possibly see more upside. The counter reports its earnings on 21st Feb. Recall that grp plans to open 3 new pawnshops and retail outlets at 3 new locations namely, Tampines MRT, Pasir Ris MRT and Redhill MRT stations in Oct12 & expects to open additional pawnshops and retail outlets in a few new locations in the next 12mths. Expects to see continued growth in the pledge book value of non-kilo-bar-gold loans on a same-store basis and at its newly-opened stores. Barring unforeseen circumstances, expects to achieve better profit in FY12 vs FY11. Note also that grp's business provides convenient and quick access to short-term financing effectively complements the role of banks and other financial institutions. Credit risk is also considerably lower, as loans/funds are disbursed based on collateral value of pledged articles, while the borrower have the full discretion and flexibility to the usage of the loans. Maxi-Cash has strong links with sponsor Aspial Corp, the owner of arguably Singapore’s largest jewellery chain (Lee Hwa, Goldheart and Citigems), enhances Maxi-Cash brand and creates room for possible synergies from potential tie-ups and transactions among the Aspial group of companies.