Friday, May 26, 2017

What makes you think you know better than OldTown Management (Part 2)

First of all, congratulation to all OldTown investors who take action to readjust the shareholding of OldTown. As mentioned on earlier article, there is no people know better than the management. When management dispose shares, we should alert.

Previous good quarter earning, which was contributed by "Other gains and losses" and reduce of "Puchase of trading mechandise,...". When come to this quarter, the "extra earning" on previous quarter is being normalise. Hence, less earning is declared. As shown in below picture.

For 12 months accumulate EPS is 13.46, which is translated to PE 23. We all know that there is a high demand and good prospect on China market, but the growth of China market seems like being drag down by local business. Hence the overall growth is only able to achieve a moderate growth rate around 8% to 10%. So the question is shall we pay such a high PE ratio to a modetate growth company?

Picture: Growth of China market is excellent, but drag down by other area. Hence, overall growth of the company is so so.

Sunday, May 14, 2017

What makes you think you know better than OldTown Management

OldTown share price hit historical high recently to RM3.11

But Management was busying selling company treasury shares until zero position. So who is right?
What makes public feel that they know better than management? Which next quarter will have a good result?

Picture: It shows management is selling agreesive to reduce their treasury shares, while share price keep moving upward

On last quarter, 4QY16, good result is contributed by foreign gain and less activity on material purchase. Which impossible to repeat all the time. If exclude these two factors earning, then current PE is standing around 30! As shown in below picture.

If you have a position in OldTown. you shall take the chance the readjust your holding position.

Blog Archive


Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.