Last weekend went to shop at Padini@1U, to my surprise can see a lot people shopping.. I also cannot resist and buy a few. Nowadays, the competition is high but the strategy is right. The important thing is the price is right and the quality is not compromise which will attract more consumer. The fittest will survive in this market. As an investor most importantly the dividend is paid and looking forward for the management to do their job to make it better :)
Thanks thomc for your prompt sharing and observation. People worry too much hence miss the counter very much soon. How many counters can offer 10 cents div per annum while share price is lower than RM2.50?
People r sabotaging to make a lower buy call. If u buy a bit higher by 10c or 20c, do not worry coz in a yr or 2, u will get back via dividend payout done in quarterly.
In this circumstances, padini is stable compare to the other stock. Winter is coming, and padini will have enough dividend to you to get through the winter.
Knowing the domestic market going to hit by GST, knowing the profit going to drop, knowing the share price is probably going to react negative if the quarterly result is not good. And we are still holding this counter? then this is not call investing..
Well, some ppl just missing points here... please refer back to the nature of business, the management strategy and the company history if you are not sure what kind of company you are investing...
Padini was founded 1975, they have passed through so many rounds of economy crisis, yet they are still surviving, and even better time to time, why? Please do some research if you wish to know.
My point is not to teach history, but based on the company growing path, we can see Padini understand how to grow and willing to CHANGE based on the market trend.
I understand for short term player, that you will not have interest on these. So, if you no longer believe or have faith on one thing, just grab whatever profit/lose, leave and go to a place that you think it's better for you, nobody going to stop you.
Please don't shoot me back if you somehow get offended~
I'm strongly believe with their management team, especially their marketing team, they are always knowing how to do business with different circumstances.
For example during GST launch, what padini do is to clear out the old stock and sacrifice the profit margin, and reclaim a lot of cash.
Scarifying profit margin means profit is expected to drop.. I am quite surprise in today market, people is talking about long term particularly in this kind of counter. Dividend 2.5c per quarter compare to the losses in the share price? Dividend is nothing
Hope the management gauge well in their clients taste. One good can't guarantee others fall. That's the reality of biz, especially in fashion trending biz.
This counter is not for the faint heart as retail is going into the stormy territory. Profits will suffer this year due to GST, weaker RM, weak economy and new competitors. Padini is sacrificing some of its margin to compete with its competitors in order to sustain its market share for a longer sustainable biz. With 13 new outlets, profit will only grow after this stormy period. Capex already being invested. Meanwhile, just take home the 7% plus Dividend Yield, and ignore the capital gain or loss for the stormy period before one can really see the light at the end of tunnel.
Some may ask, why take this risk, well, while waiting for the storm to be over, you have a great shelter (DY of 7% plus). Should the price fall further, then the DY may improve. This is a long term stock i.e. > 3 years.
the company looks like building up it's cash and cash equivalents to face the coming storm. In time of crisis, this will be a good defence for the business. "Cash is King" rule will soon be on everyone balance sheet
My decision was correct! The downfall of ringgit will cause the price of imported goods to rise, and it will actually benefit local brands such as Padini as it can now offer a much better price compared with the foreign brands.
I never trusted any analyst ever since the hype of Airasia X. Not to say that the profession is useless though, but it is hard in our country to find a good financial analyst who is free of bias and really do a good analysis on the company.
there you have it, the institutional investors has sapu-ed enough while they trigger the panic button during GST implementation period. now the ANALyst also changed the sailing direction, reiterate BUY call so their affiliates can dispose their part.
Hi Chong, thanks for sharing. It's an interesting reading and learn some new stuff there. I do personally feel this counter is a good choice of investment at the current market condition. I do hold quite a number of lots too. About 4 years till now. Would like to see what the management will do to in near future. I still have strong believe in their top management I know o could be wrong but if for those who invest at least medium to long term should be appreciate the return of this stock given the current price.
This stock should at least worth RM1.78 in near future.
All Quarter results (2015) have proved that Padini is doing well even with GST. Local brand is far more valuable and attractive now compare to foreign brand pricing due to exchange rate. Thus SELL, sell all your shares to us.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tc88
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Posted by tc88 > 2015-07-18 21:40 | Report Abuse
Icon8888, are u buying Padini at current price?