The Curious Case of Sing Holdings: A classic case of “Buy the Rumor, Sell the News”?

Sunday evening – Sing Holdings and Wee Hur announced that Parc Botannia sold 230 units on the first weekend of launch

Monday evening – Sing Holdings’ share price surprisingly fell by 4% whilst Wee Hur’s share price rose almost 2%

The Curious Case of Sing Holdings?

Well, probably not. It seems more likely to be a classic case of “Buy the Rumor, Sell the News”. Let’s take a look at Sing Holdings’ share price movement. Prior to the recent run-up in Sing Holding’s share price since July, its share price was hovering around S$0.35 and for the past 4 months, its share price shot up by over 40% to close at S$0.495 last Friday.


Sing Holdings
Sing Holdings 1-year share price chart


It is likely that investors had already priced in a strong sales performance at Parc Botannia prior to the actual launch. The eventual announcement on Sunday probably brings little surprises to the investors and was probably just to validate the guided sales price given by Sing Holdings and the confirming the strong buying interests at Parc Botannia (which was probably expected). Without many positive surprises to push the share price further up, investors might have taken this opportunity to take profit, in particular for those investors who bought the shares in July at S$0.35 per share.

Then why did Wee Hur’s share price increase?

Let us take a look at Wee Hur’s share price chart below.

Wee Hur
Wee Hur 1-year share price chart

Wee Hur’s share price had remained pretty stagnant at around S$0.24 for most of the year and it was only recently, in October, that Wee Hur’s share price started to trend higher. As at last Friday, Wee Hur’s share price closed at S$0.28, gaining around 17% since the run-up in October. In comparison to Sing Holding’s share price performance, Wee Hur’s shares would not be as overbought as Sing Holdings and it probably means that investors might not have priced in the full impact of Parc Botannia’s launch as optimistically as they had done so on Sing Holdings’ shares. This is probably why Wee Hur’s shares manage to see some gains today.

As a value investor, SPK tends to ignore the short-term noise in the market and focus on the long-term value of a company. From this perspective, SPK still believes in the long-term value of Sing Holdings base on his earlier analysis of the company. There might be a possibility of profit taking to continue for the next few days, but for those believers in Sing Holdings’ value, this might be a good chance to accumulate! But, DYODD please! (DO YOUR OWN DUE DILIGENCE)

Keep Calm and Carry On Investing!



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