I know I haven’t done a piece on Epicenter Holdings yet. But this stock is doing something that I really like which is mobile productivity and mobile computing. You can read more about my thoughts here at www.ProductiveOrganizer.com
Now Epicentre Holdings Limited operates as a premium reseller specializing in the sale of Apple brand products and its complimentary products in Asia. The company offers its products in the retail market through its EpiCentres.
It is easy to see that money raised through the stock market for EpiCenter has 2 main uses:
- Future Working Capital
- Overseas Expansion
My worry is the second use. China probably is the easy to come to mind destination, but do you think it is easy to succeed. Investing in food retailers like Food Junction have taught me that it is never a straight forward case of you dump money you get returns.
Here, Hon Hai which is a large taiwanese manufacturer (you may know it better as Foxconn) wants to expand its retail chain:
Cybermart, a retail arm of Hon Hai which also owns Foxconn, has recently received approval as an Apple-licensed retailer in the Asia-pacific region. The retailer intends to sell Apple products in up to 500 new stores planned for China, Hong Kong and Taiwan. Cybermart will open seven to eight stores in 2011, starting with its first store in Tianjin, China which will open on April 1, 2011.
Now I do not know how successful Cybermart is vs EpiCenter but that is a big boy that is hard to go against.
What are your thoughts?