What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments.
Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018.
Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price and what is the outlook for this homegrown counter?
BreadTalk share price thrashed
Every dog has its day. BreadTalk share price used to be one of the top dogs in SGX, hitting a pre-split of $2.50 on 3 July 2018. But the dynamics for this counter had changed swiftly. In the blink of an eye, BreadTalk had transformed into a dead stock, with average 3-month trading volume of merely 6.2 million. For the past 12 months, big boys had also gave this counter the cold shoulder, with minimal buying and selling interests. Apparently, the fiery form of BreadTalk share price had fizzled out.
In my previous article in 2017, I warned that the bullish form of BreadTalk share price would not be sustainable because it was not built on business fundamentals. Evidently, investors still see BreadTalk as a food and beverage player and any further good news from property divestments would unlikely to fuel bull run in BreadTalk share price.
It seems that the management has …Read more