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.




2 comments:

psyjyee said...

nice spot.
thumb up

Unknown said...

True that no one knows more than insiders.
But had the share price plunge right after the completion of the sale of Treasury Shares, then your observations are indeed spot on.
But, the share price has actually gone up over 10%...
If you check the Shareholding List, The Top 30% Shareholders account for 84% of outstanding shares, with many of the names being Institution or Foreign Funds.
If anything, the sale of the Treasury Shares presented a fantastic opportunity to either buy or top up position in Oldtown,IMHO.

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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.