DDD Has Dropped Down Deep in a Ditch

A very expensive lessen for the little moths that were fascinated by the flame of the beautiful and pretty Cosmetic stocks. The final result of the fatal attraction? They fell like flies. It will definitely “take some time“, it would take some time for quite a period of time, especially for Du Day Dream Plc (DDD), which debut its trade on the SET on December 26, 2560. IPO priced at 53 baht.

 

After trading a while in the secondary market, the stock prices were considered very good. As the share price gradually rose to the peak of 119 baht, “it was a brief period in time that the tiny moths could swirl and cheer gleefully” because it was the stock’s price rise from adjustment after entering the market itself.

Eventually, in the end, the stock price dropped unexpectedly. “The price has weakened” until it finally reached the bottom of the abyss. On 19 October 2018, the stock closed at 29 baht, the lowest since trading in the market.

No rejuvenation cream can help the little moths it seems. There’s really nothing to do to help, there are just the snail’s tears flowing.

 

The pressures on DDD shares just came repeatedly over and over, again and again, after the share price had fallen below 100 baht. Many negative news started emerging. Like monsoon torrents that won’t stop crashing down on a person going through a rough time in life. The company had rumors of fake orders. Then, it was scrutinized by the SET, and the Office of the Securities and Exchange Commission (SEC). As well as the company’s auditor being referenced to their competence and ability to work. And then, the sale of shares by its major shareholders.

 

The rumors about the company did not calm. Representatives came out to defend against the rumors in melees. But the company could only support the stock price from faltering further, but could not help in the stock’s price’s recovery. Not long after hushing the negative news, the company was affected by the lack of consumer confidence from the cases of arrests of products without FDA approval, and the order for closure of Talad Mai market Don Muang and Huay Kwang market. Investigations found that fake cosmetics were being sold.

As a result, sales of the company had significantly decreased. The company had revenue from sales of products at Talad Mai Don Mueang market that accounted for 15-20% of its income revenue, adding additional pressure on the stock price of DDD to fall deeper.

 

As when one mishap has yet to end, another calamity comes a knocking, the number of Chinese tourists fell 8.8% from the previous quarter. Chinese tourists are the main customers of DDD, resulting in sales decline as well. Adding on another hurdle of hindrances to the company. The snail tears don’t stop flowing!

When an analyst came out with a researched analysis that points to an expected net profit fall to 5 million baht (down 89% YoY and down 92% QoQ) due to a slowdown in revenue to 160 million baht ( Down 58% YoY and down 55% QoQ).

 

The negative factors have been beating down on DDD repeatedly, over and over, then some more… If the management does not hastily solve the problems. Doesn’t expedite finding a way out. There’s a possibility that we will see the stock price dropping down to below 10 baht. As did the elder BEAUTY had been through this abysmal hurt before.