Shares & Derivatives
Riverstone – Is the recent 32% decline justified? (12 Sep 2020)
By Ernest Lim's investing blog  •  September 12, 2020
Riverstone recently caught my attention. It has tumbled approximately 32% from an intraday high of $4.90 on 7 Aug 2020 to close $3.33 on 11 Sep 2020. One client even thought that Riverstone has already undergone a bonus issue! The recent weakness is likely attributed to its co-founder selling 15.5m shares at $3.95 (Bloomberg cites a 90-day lockup on seller); the possibility of a vaccine resulting in demand for gloves and consequently their average selling price (“ASP”) falling off the cliff and some Malaysia investors selling shares to raise cash, as their moratorium on loan repayment ends (click HERE for the article) Granted that there is some merit to the above. However, is the 32% fall justified given that it is cheaper than its industry average based on FY21F PE? For this write-up, besides sourcing information from the usual sources, such as analyst reports; news articles etc, I have the fortune of catching up with Mr Wong Teek Son, Executive Chairman, Co-founder, and CEO of Riverstone...
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By Ernest Lim's investing blog
I am an avid investor, trader cum remisier. I am a Chartered Financial Analyst® charterholder, as well as, a Chartered Accountant of Singapore. I have published articles on a wide range of topics on finance and investment, ranging from market / sector outlook, technical analysis and fundamental analysis etc.
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