Thai Beverage Breaks Down from Descending Triangle

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.

In the full year financial results presentation, Thai Beverage presented that beer revenue declined by 7.5%. The company attributed negative growth were mainly due to slowing down in ASEAN sales despite positive sales growth in Singapore and Cambodia.

The annual dividend in FY16 for Thai Beverage is 0.60 bhat. This is 1 cents less than the total dividend of 0.61 bhat paid out in FY15. 0.60 bhat translates to roughly S$0.024. At current stock price of S$0.86, this translates to dividend yield of 2.79% which is super not attractive.

Thus, I will be skipping Thai Beverage for now.

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