Editor’s Notes: Thebearprowl shared on their Facebook page in July that they took on a short position in Singapore Press Holdings Limited(SPH:SP) at $2.41 with a view of an instrinsic value of $1.20. Since then, the share price has fallen to $1.98. This is a near 18% gain in less than 3 months. We have been able to secure exclusive insights into their rationale for the view.

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SPH has underperformed in the past 5 years, with the share price falling from around $4.30 to $1.91 today, despite that, we believe that the worst is yet to come. We expect the next 12 months to be potentially more challenging for the business than what they have been through so far. In this financial year, the business has continued to underperformed in most segments, taken on further accounting charges and raised debt at increasingly higher cost.

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