Mewah stock fell sharply after 2Q profit was horrible at just US$6 m. `1Q was US$17 m.
6 + 17 = 23 million at half-time, which was ony 22% of analysts' full-year forecast.
Mewah got hit by downtrend in CPO prices and JP Morgan says the worst may not be over – we downgrade to Neutral.
From the charts, CPO prices in 3Q are even lower than in 2Q. JP Morgan downgraded the stock to Neutral, with a reduced SOTP PT of S$0.60, which implies 13x/10x FY11E/FY12E P/E.
1. I don't understand how CPO prices affect Mewah which is not a plantation owner. It buys CPO and refines it into different consumer products.
2. All eyes will be on Mewah's upcoming 3Q results. Considering the low 2Q profit, the 3Q can't be worse, so there may be some positive upside to the stock
Huge volume ..... 47.8 million shares traded today. Mewah bosses panicked and turned pro-active to tell SGX:
Mewah International Inc. (the “Company”) has noticed a substantial increase in the trading
volume of its shares today.
The Company confirms that it is not aware of any information not previously announced
concerning it, subsidiaries or associated companies or any other possible explanation which
might explain the trading.
Top volume by 930 am today ... 15 million shares ... now trading at 52.5 cents ....+5.5 cents, 11.8%.... and the company said it is not aware of any news? LOL
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