Thai Beverage Thinks Beer and Fried Chicken Is A Good Match

Thai Beverage plans to acquire 240 KFC branches for 11.3 billion baht via its subsidiary QSR of Asia (QSA). This makes them the third KFC franchisee in Thailand. The other two franchisee are Central Restaurant Group and Restaurant Development Co Ltd.

The brand KFC (“Kentucky Fried Chicken”) is owned by the Yum! Brands Inc, based in Louisville. Drilling into the 4th quarter 2016 results for Yum! Brands Inc, Thailand is considered as an emerging market and contributes 2% of KFC sales. For the full year, KFC sales in Thailand grew 6%. The highest sales contributor for emerging market is China with 27% contribution. Read More

Thai Beverage Breaks Down from Descending Triangle

Thai Beverage has always been in my stock watch list (Most people drink beer in good times and bad times right?). I have always wanted to own a beer company in my stock portfolio and it is about buying at the right price.

Previously, I have wrote about Thai Beverage forming a descending triangle. This is a bearish pattern. On 16th November, the chart confirmed that Thai Beverage has broken down from the descending triangle pattern which confirms the downtrend. Read More

Thai Beverage Forming Descending Triangle

thai-bev-descending-triangle-20161028

It has been a long time since I tried technical analysis. To be honest, I am not really very good at it. Was watching Thai Beverage in my watch list and decided to check out whether it is worth jumping into. The stock price has appreciated quick a fair bit since I looked at it when it is at $0.72.

Based on the bearish pattern, a descending triangle is forming based on 1st August 2016 to current 28th October 2016.

Conclusion

I shall be staying clear of Thai Beverage for now. There is potential further breakdown below $0.91 should it breech the support line. As the old saying goes, “Never catch a falling knife”.