Hwa Hong released its Quarter 1 results this week, its revenue reduced by 35.8% versus 1Q2011 due to reduction in proceeds from sale of investment securities. But profit before tax was higher by 245.1% because of gain on disposal of an investment property. Until the time when its revenue stream is in steady and recurring state and its non-operating activities have stopped so it is impossible to forecast its revenue flow to its bottom line.
Its last done share price on Friday was at its 52 weeks low of $0.41. It will go ex-dividend on 8 May. So, till then l am expecting its share price to hover around $0.41. Will it drop to its NAV of 31.07 cents upon ex-dividend? In the short term, this is quite unlikely as it will be a massive 24% slide of its share price.
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