Home Money Making Outdated Chang Kee H2 revenue jumps 52.6%! Purchase now?

Outdated Chang Kee H2 revenue jumps 52.6%! Purchase now?

Outdated Chang Kee H2 revenue jumps 52.6%! Purchase now?


For readers who who should not subscribed to my YouTube channel or who merely want studying blogs to watching movies, that is the transcript of one other latest video I produced.

I first invested in Outdated Chang Kee in 2011.

On the time, I stated that Outdated Chang Kee’s meals kiosks have been ubiquitous and all the time gave the impression to be doing good enterprise.

I additionally thought that the enterprise was comparatively recession proof.

It was very very like property builders promoting shoe field residences.

The smaller financial quantum makes them extra reasonably priced.

I didn’t suppose that, in a recession, we’d see individuals slicing again on their favorite curry puffs, sotong sticks or yam truffles in a giant approach.

Outdated Chang Kee might improve their costs by 10 cents per merchandise and it might not really feel like a lot to the customers.

Nevertheless, it might enhance their prime line and backside line immensely in share phrases.

Consider a ten cents improve on one thing that prices $1.

That is a ten% improve and positively not one thing to sneeze at.

I additionally appreciated that Outdated Chang Kee paid common dividends and would take a look at it once in a while.

Some readers prefer to ask me if I feel Outdated Chang Kee could be price investing in today.

After all, I might aspect step such questions.

I might inform them that when Outdated Chang Kee was buying and selling at 38 cents per share in 2011, I discovered it too costly.

I solely purchased some at 26 cents a share.

Based mostly on a 2 cents dividend per share, that may be a dividend yield of virtually 7.7% on price.

Since I bought half of my funding at 52 cents a share, my present funding can also be freed from price.

I get free cash yearly or, as I prefer to say, free curry puffs.

Again in 2011 after I invested in Outdated Chang Kee at 26 cents a share, it was buying and selling at a PE ratio of barely greater than 12 occasions.

Its gross revenue improved 11.6% whereas internet revenue improved 25.9%.

Within the newest report, Outdated Chang Kee reported that H2 revenue elevated 52.6% on greater gross sales.

Seems to be like my free curry puffs are safe this 12 months.

So, ought to we spend money on Outdated Chang Kee right this moment?

If I’m not mistaken, PE ratio for Outdated Chang Kee is nearer to 16 occasions right this moment.

That appears fairly costly to me.

Additionally, Outdated Chang Kee’s shares are thinly traded and it’s fairly dangerous to place in in a single day purchase orders.

If I needs to be occupied with shopping for, it might be a good suggestion to look each day to see if anybody is perhaps promoting at a value and quantity which make shopping for worthwhile to me.

If AK can speak to himself, so are you able to!




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