SING Tao Holdings is principally engaged in publishing in Hong Kong where it produces the Sing Tao Daily and The Hong Kong Standard.
Last year SBC Warburg put a sell on the stock, saying Sing Tao Daily was unlikely to recoup the 5 per cent drop in circulation it suffered when failing to enter the circulation price war last year.
This proved good advice. A year ago, Sing Tao traded at $4.625. Now it is worth $2.90, having trailed the HSI by 58.79 per cent. SBC Warburg has a buy on the stock.