Is Imperium Crown Limited a nightmare investment?

As an investment blogger, I think every stock deserves an unbiased coverage, no matter how good or bad the business or management performs. Thus, it is with an open mind that I decided to initiate a review on the investment merits of Imperium Crown, a Catalist-listed company that is based in Singapore.

Although Imperium Crown falls under the radar of many stock analysts, its story is nothing short of intriguing. Those who have invested in this counter would have a roller-coaster ride as the share price plummeted from $0.14 to $0.03. The stock would have been put under the SGX’s Watch List long time ago if not for the fact that this ruling is not applicable for Catalist-listed stocks.

When you have a stock trading at crazily cheap level like Imperium Crown, you do not know if there is any value left in the shares. After all, cheap does not equate to value. When investing in companies, there is a need to identify their competitive edge and then assess if the business fundamentals provide the sound basis for investments.

For investors of Imperium Crown, they would look back and lament that it is almost a case of a successful turnaround as management had engineered a brief success in a very niche market. But it turned out to be a false dawn for investors.

Generally speaking, I don’t subscribe to the notion of business turnarounds in Singapore because they are rarely successful. But for some strange reasons, many investors found the term “transformation” sexy and often buy into business changes without realizing the risks involved due to the management’s lack of experience in project executions.

Transformation of Imperium Crown

For a company that was founded in 1995, you would expect Imperium Crown to have at least some form of track record or core competency. Nevertheless, it should be noted that the company used to be known as Communications & Design International Pte Ltd, which specialized in outsourcing and marketing business.

In 2014, for some unknown reasons, the management decided to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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