ALLDAY Supermarket Stock Review: Why I Didn't Invest in the IPO
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- Опубліковано 10 лис 2021
- All the craze in the Philippine Stock market these last few weeks have been the AllDay Supermarket IPO! Now it's already past the IPO period and the stock has debuted in the Philippine Stock Exchange, but I still wanted review this stock despite already being a bit late. On it's debut, the stock of AllDay (ALLDY) surged by 100% before settling down and closing at 50% up from its IPO price. At the time of filming this video, the stock had gone by 20% on its second day while gaining another 5%on its third day. There is obviously a lot of speculative trading behind this stock as it continues to consolidate and encounter volatility. Amidst all this, I'm on the sidelines just watching the action. As much as the stock raised my curiosity, I just wasn't too interested in participating in the AllDay Supermarket IPO. Why is that? Watch this video to find out my reasons on why I didn't invest in this hot IPO.
Despite taking part in the Philippine supermarket industry in just the last few years, AllDay Supermarket has aggressively pursued expansion. Now with an army of 30 supermarket branches and 3 AllDay Mart (convenience store) branches, this new venture from the company's richest businessman, Manny Villar, pushed for its IPO this 2021. 33 branches is impressive for a start-up, but it still pales in comparison to the industry leaders such as SM, Robinsons Supermarket, and PureGold, which all have hundreds of stores each in their arsenal. The presence of time-tested competitors in this cutthroat industry is the first reason why I wasn't particularly interested in investing in the AllDay Supermarket IPO. Moreso, I noticed that while AllDay had an impressive roster of its branches, most of these were situated within properties and developments owned by its mother company, the Vista Land group. If not situated within the confines of its developed communities, AllDay Supermarket is situated within Vista Malls, also owned by the same group. While this is not an issue by itself, it makes me wonder if AllDay Supermarket can really expand and go into properties beyond those that they already own. Sure, it makes for great business for the residents of their communities and buildings having these supermarkets and convenience stores as well as being the anchor tenant in their Vista Malls so that they attract more tenants and retailers. But other than playing a complimentary role to the Vista Land properties, I've yet to see if AllDay Supermarket can really stand on its own. The forte of the holding company is really in property development and property management so while they are definitely leaders in the said industries, they are new in the competitive space of retailing, most especially in supermarket operations at that. This business requires ultra efficient operations working with razor thin margins so if I have doubts about how they can continue to expand and scale, it is all within reasonable doubt.
AllDay Supermarkets are also visibly different with a slighlty higher taste for class and refinement versus the typical supermarkets in the Philippines. They also have a product selection that also appeals to a more worldly appreciation of global produce. These have been carefully and intentionally done by AllDay Supermarket as they are said to position themselves to target an upper middle class demographic. While all great in strategy, I think the execution of this and if it deliver results really remains to be seen. For the most part, bargains and low prices would still be what the Philippine population would be after and is currently offered by Puregold. On the other hand, those seeking premium products have delis and the Marketplace as well as S&R Membership Shopping to turn to. While this upper middle class market seems to be underserved, a mid-tier positioning may be hard to fully execute. I myself just either seek bargains or premium products in my shopping for groceries. Rarely do I seek something in the middle.
Lastly, the bigger retail groups such as SM and Robinsons both have their retail companies listed in the stock market but just under one company. Regardless of the handful of retail concepts that they operate and the hundreds of branches that they have they are all listed under just one company each. This is unlike AllDay which had its sister company AllHome debut in the stock market in 2019. Also, AllHome continues to trade below its IPO price which should serve as a precautionary tale about this group's foray into retail and listing public.
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11:11 talaga. Eksakto. Good and respectful analysis. Thanks.
thank you sir! nagkataon lang yung 11:11 actually 😅 today ko pa dapat ito ipublish but when i saw the time stamp yesterday nung pag upload ko ng draft, sabi ko push ko na matapos kagabi hehe
Thank you for such valuable information. Do you consider to make some informational videos about the other two retail companies listed in the market (Robinson and PureGold) ?
Thanks for the support! I think that would need a thorough analysis on the fundamentals, which unfortunately I'm not ready to do 😅 But off hand, I like PureGold over Robinsons. PureGold's operational efficiency and focus on its markets (PG for lower market and S&r for upper market) have great focus. Robinsons has a wide variety of retail concepts (including their specialty stores) which are harder to gauge in terms of performance and profitability.
nice explanation. nagpublic na pala ALL Day.. dami ko tlga natutunan about investment here on your channel.
Happy to share hehe
Can't view your comment in my latest video. Actually dami comments lately ang bilis mawala
@@ZiggingbyMarkSigg hmm bat kaya. Full watched and all naman ako.. baka yt is acting up na naman.
Yeah medyo weird kasi some comments i get to read in full ss email so legit naman. I think madami kasi spam pag finance vids na YT removes so maybe even the legit ones natatanggal hehe
So basically you are not just convinced
whats the purpose of this video
Oh naginvest ako sa ALL-DAY kasi mura lang IPO nya. Now I'm thinking twice if I should continue. May iba pa po ba ako ng magandang bilhan ng stocks? Say if I only have 5000 php. Thanks po sa video very informative. Liked and subbed
Thank you Edgar! Usually for the local market, HODL ako and get only into blue chip stocks. Any of the Ayala stocks are typically a good long term play. I've also like REITs.
Hi Edgar can you share po how i can joined to any small scale investment /shares
Foreign money is in...