Louie Shum bearish on retail stocks, expects GIORDANO INT'L (00709) to meet resistance at HK$5.8
GIORDANO INT'L (00709) gained 4.4% after announcing interim results, last at HK$5.6. Louie Shum, Chief Executive Officer of Sincere Securities Ltd, deems the climb was mainly attributable to the horizontal movements of the stock in the past. Nonetheless, he thinks it will be hard for the stock to keep the uptrend and the stock may be greeted by resistance at HK$5.8.
Shum said although certain investors are still hoping New World Development Company Limited Cheng Yu Tung would increase stake in GIORDANO INT'L, the retail industry is facing the challenges from high costs and fall in sales, said Shum, who added the gross profit margin and same-store-sales of GIORDANO INT'L dropped in the first half of 2012. Shum believes there is slim chance for GIORDANO INT'L to fare better in the second half of the year. He did not suggested investors buying the shares of GIORDANO INT'L.
(By an SFC licensed person.)
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