PADINI (7052) - BLOODBATH

PADINI - BLOODBATH

Padini, I think I no need to describe much on its business. Every one of you either you are a shopaholic or a window shopper, you surely will know this company, unless you are not a Malaysian.

Recently, its share price plunged 35% in half of a month time. Actually what is going wrong in this company?

1. Poor latest quarter result, below expectation.
2. Lower sales and margin
3. Higher operating costs expected to be continued
4. Underperform shoplets will be closed in 1-2 years time
5. Expansion and profit growth slowing down
6. Competitive business environment

Why do so many investors keep catching this falling knife? Is it a cheap buy or still an expensive buy now? Will its share price continue to slump or ready to recover? or just because they are one of the fans of PADINI?

1. Price will continue to fall in this bearish market.
2. However, there is a potential small rebound at the price of RM 3.00-3.05 per share, but this rebound might not last long.
3. Might be a seasonality play counter, by taking last 5 years data, the up probability of Oct-Jan is below 50%.
4. Ultimate TP: RM2.50 and below

My 2cents comment,
1. Catch if you have a strong heart and deep pocket.
2. Buy its shirts, not its counter.
3. Buy low, get super low.
4. The global business landscape is shifting to digital age.

Not buy or sell call, good luck and happy investing.

https://klse.i3investor.com/blogs/PadiniHoldingsBerhad/186715.jsp