Stocks in the news (beauty, digi, hmpro, m, pylon, sisb, tu) 15.05.19
BEAUTY sees earnings recovery in 2Q and into 2H19, adjusting sales strategy and keeps expanding oversea channels to 15 countries, firms on net profit margin of 25% on 20% revenue growth.
Comment: That’s not the case when looking at the performance
DIGI name change to B-52 Capital Pcl, ticker change to B52, effective today.
Comment: It’s incredible that this company that is continually changing name, shareholders etc etc is still allowed to remain listed
HMPRO anticipates solid 2Q from strong air condition & air purifier sales, will add more house brand to boost margins, target to open 6 branches this year.
Comment: And Malaysia is no longer a drag on their profitability.
M reports Bt709m. topped Bt680m estimate, adds dessert café, MK Harvest, into restaurants portfolio, aims to branch out from family dining to youth segment.
Comment: Oh lala , they keep growing and growing
PYLON sees lower 2Q on long weekend, holidays and political uncertainty, keeps Bt1.6b revenue target with Bt902m backlog.
SISB sees strong 2Q on rising enrolments and maintaining same account standard, keeps 15-20% revenue growth target, plans Spore roadshow with Citi.
Comment: Part of me applauds their ability to grow, another part of me hates that education is such a money making business
TU expects windfall from trade war as US buyers divert source of products from China, maintained full year margins target at 15% sales growth 3-5%, allots Bt4.8b for upgrade existing plants.
Xavi
Part of me thinks they pumped up their earnings artificially so the owner could sell via PP at a ridiculously stretched value 19 baht from memory. Doesn’t help that analysts were driving the narrative with stupidly high target prices.
peter satapa-binder
i remember that he had sold twice: the first time when it was 19 or 20-ish and the second time last year after there had been a small rebound from app. 7 going up to app. 12 baht – and each time it the price dropped considerably quite immediately after his sales:)
Pon
Well why not, if there are silly buyers in the market, well done to him for selling out some shares.
peter satrapa-binder
sure, but one just should be aware of this…
peter satrapa-binder
@BEAUTY: well, based on recent results for 1Q19 the stock is still quite expensive i’d say. it would be priced ok based on last year’s results…
Xavi
Beauty is a perfect example why you should not rely on analyst price targets for investment decisions, when it traded at 19 baht the PT was 21. Then it dropped to 16 and the PT was lowered to 18. Then it dropped to 12 and the PT lowered to 15. Then it dropped to 8 and the Pt lowered to 11 now it is sitting at 4.2.
On the other hand, PTTEP was trading at sub 70 baht when many analysts kept saying its a sell sell sell in 2015 without ever considering oil is cyclical to supply and demand adjustments. So in conclusion one has lost 75% of its value and the other is up 120%.
Pon
Use the sell side research for the data points that one normally doesn’t have access to.
peter satrapa-binder
well, what i usually do when selecting stocks is to:
1.) check the fundamentals and also the charts myself first, also whether there are any other ‘special’ developments which might impact the price (politics for example)
2.) and only THEN I will look at the analysts price targets too. i think that one has to consider them to some degree because at least some other investors will consider them too and so they may be able to sway the opinion of the market about a certain stock to some degree and with it the price development. the best stock will not rise if the market just does not find it ‘sexy’ enough…
so, if the price targets of the analysts are totally against my own opinion even if i’d regard a stock as good to invest in, i might decide to stay on the sidelines still…
and of course, analysts may shift their price targets around very often and immediately, like in the case of BEAUTY…