Ming Pao Recommendation: Sell Brokerage: Smith New Court FINAL results were appalling. Even worse, they were qualified by the auditors, with concern over recoverability of loans totalling $296 million. Operating margins remain pressured as costs rise and revenue is expected to slow significantly this year. Apple Daily also threatens to take market share.
Further problems include an 84 per cent rise in the cost of newsprint, while advertisers are not spending as aggressively as before. The stock trades at a discount for good reason. There are plenty of reasons to sell.