Saturday, 4 October 2014

My thoughts on Old Chang Kee

I happened to discuss this with my friend recently, here are the highlights of our discussion:

- it mainly serves deep fried food. with people becoming more health conscious, this could be one limitation to its growth.
- it doesn't own  its shops, thus subject to the whims and fancies of its multiple landlords. hence it doesn't have heavy asset backing. should earning take a plunge, its share price should likwise fall.
-no regular dividends. it does pay dividends, but the amount and frequency are erratic

With so many uncertainties, i will give old chang kee a miss.

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