Singapore International School of Bangkok ( Short )

2024年12月16日

Cooling off. Overshot to the upside. Needs time to grow into earnings.

3月12日

交易進行

Short target perfectly hit (17.50-18.40 baht. )

Banking analysts were recommending the stock in the high 20's, but SISB was/is overvalued and their discounting models were inaccurate, or rather overly optimistic.

Nonetheless,
This is a quality stock but was just simply grossly overvalued, it needed a cool-off-period and for earnings to justify its lofty valuations.

Going forward,
we see the selling pressure continuing until it reaches exhaustion. Two headwinds remain at the moment, global risk off sentiment and a struggling Thai economy. However, education is usually a lot more resilient and domestic demand can still support this stock compared to other other companies more exposed to global markets.

Today is the day I take my first entry and start accumulating SISB. (play a bounce for traders, too), but stock could still trend sideways to downward to the 14 baht region.

It is now giving previous sidelined buyers and opportunity to accumulate a well run and capitalized business with good growth prospects.