Ran across this tread my accident.
SVEV seems to be a good play, with strong earning growth lately with little appreciation in the stock. I'll try to support this thread with info as it comes.
Read this gem from the Asian arm of SVEV (found by someone on the Yahoo thread in the Taipei Times taipeitimes.com
Capitalizing on ubiquity
For all the hype about low-overhead virtual storefronts in the US, Taiwan's hot Internet play over the past two weeks has been a brick-and-mortar retailer with more than 2,200 outlets islandwide.
Since Nov. 26, shares in President Chain Store (ý×Ï@ôWøà), parent to the ubiquitous 7-Eleven, have soared 44.3 percent to NT$120.5, primarily on enthusiasm about the company's recently unveiled Web strategy.
"They already have the most important components when it comes to e-commerce," said James Chung, equities analyst at Jardine Fleming, one of five analysts who, according to Bloomberg, rate President as a "buy."
Chief among those components is a payment system that allows consumers to settle utility bills at their nearest 7-Eleven. The system could also be expanded to accept payments for on-line purchases from shoppers wary of feeding their credit card information into a computer.
Another piece of the puzzle is a joint venture with Yamato Transport, Japan's largest trucking company, to create a domestic parcel delivery service.
"We don't have a very convenient delivery system," Chung said -- but with 7-Elevens easily out numbering post offices in Taiwan, the place where one buys milk and newspapers could also become a pick-up and drop-off point for packages.
According to an October company statement, President, who will own 90 percent of the NT$500 million venture, will launch the delivery service in April.
Then add to the mix a possible Web site that sells items such as books and CDs. The Internet -- which has allowed Amazon.com to tightly control inventory -- would seem appropriate for a retailer that knows how many instant noodles packages are in stock at each of its stores at any given moment.
To be sure, President isn't pursing its Web ambitions alone, as it has 7-Eleven Japan to serve as its guide.
"In the past, President Chain in Taiwan has always copied Japan," Chung said. "We have a similar culture and environment. We have similar consumption behaviors."
What's more, investors are banking that President's shares will follow the same skyward trajectory of its Tokyo counterpart. On Friday, 7-Eleven Japan closed at 14,150 yen, up more than three-fold for the year.
Although profit-taking has pushed President 11.2 percent off its 52-week high of NT$134 set Wednesday, Chung still sees plenty of upside potential based on the company's prospects for high growth. He has set a price target of NT$170.
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