The last report on Nov indicated that Parkson retail has S$12m losses, majorly due to an increment of operational cost and gestation of new stores.
As a result, the shares have tanked from 0.125 to a low of 0.063.
Recent buying volume below 0.075
Note the stated reason is for the lack of revenue. It states that due to the absence of festival holidays of Hari Raya/LeBaran.
However, this will be starting in June 2018.Eid al-Fitr 2018 will begin in the evening ofand ends in the evening of
This means that there will be likely no negative results that will be released from now until June.
Next, Tan Sri Cheng Heng Jem holds, directly and indirectly, 53.52% of the voting shares in PHB, which is the sole shareholder of East Crest International Limited. East Crest International, in turn, owns almost 70% of Parkson. There is no insider selling, and I assume the Parent would want money to flow back upwards, hence I believe the "will" to distribute dividends will be there.
They are paying themselves peanuts. I like in terms of presence in popular malls, parkson has done a good job too. Look at the three links
In either survey, Parkson is the anchor tenant in 4- 5 of the most popular malls.
Also, if u take a look at Aeon, a competitor in the department store space. U compare Apple to Apple, by taking only Aeon Retailing Segment and Parkson Malaysia Segment, Parkson again fare better.
Now looking at the charts, there are some buying volume from any prices below 0.070.
I strongly believe that it will retest the 0.100 price level first, and then 0.125 if there is strong volume.
This is backed by the latest EPS (Earnings Per Share) as well as NAV (Net Asset Value) of the shares.
In other words, given the current price 0.074, we are looking at an upside of 35% if it hits 0.100. Worth a try to do some bottom fishing here!
Entry: below 0.075First Take Profits: 0.090 to 0.100Second Take Profit: 0.115 to 0.121
Cut Loss: 0.065