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| Epicenter 5MQ |
Epicenter is the premium reseller for apple products and complimentary accessories. This company was in my watchlist for about 3 months and after going through it's financial reports, It passed my criteria. I waited for a price correction to take effect before buying it recently and indeed I got it at somewhat bargain.
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| Epicenter Shop |
I rated this as one of my momentum stocks and after going through some analysis, it has some value over a period of time. It has some durable competitive advantage compared to the other resellers like iStudio and Nubox. I still remember that Epicenter was established way before the iphone and ipad boom. In the early years Epicenter was the only Apple reseller at Wheelock Place.
As we know, wherever you go and for sure you will definitely see somebody holding on to an iphone or ipad. I like to think of companies as owning a piece of the consumer's mind, and when a company owns a piece of consumer's mind, it never has to change its product and you will find out why. Apple products has somehow monopolize our tech savy civilization. Epicenter main role is just to sell a apple products. So I'll leave the R&D to Apple to crack on year to year because R&D is a black listed expense in my stock picking criteria.
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| Apple Products |
Money raised from it's stock are used for future working capital and overseas expansion. They are looking into China for expansion and I have no problem with that. Only thing I'm concerned is whether they know that Cybermart, a retail arm of Hon Hai which also owns Foxconn (controversial company producing world's supply of iphone and ipad) got an approval to become an Apple licensed retailer. They plan to put about 500 stores in China, Hong Kong and Taiwan. Worst case scenario is that Epicenter might have barriers to entry in the Chinese market compared to the big boys there who has a foothold on supplies. I hope Epicenter will stick to their business mantra which makes it unique.
Nevertheless I'm sure everybody has faith in Apple products. Of course we are waiting for iphone 5!!
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