TalkMed share price lost its way

Sign up & unlock articles! Will TalkMed share price ever see daylight? This counter used to be one of the rising stars among the Catalist. With a market capitalization of $554 million, TalkMed is actually one of the largest Catalist stocks in Singapore. Yet, a combination of events caused this healthcare group to fall off the cliff in recent years.

Every dog has its day. TalkMed share price had a good start when it surged from IPO price of $0.20 in January 2014 to hit a high of $1.00 in July 2016. That solid run also saw the Group issuing bonus shares to reward shareholders on the basis of one bonus share for one existing ordinary share back in May 2017.

TalkMed share price

Then all of a sudden, the wheels came off the wagon for TalkMed share price. In June 2017, the Group’s CEO, Dr Ang Peng Tiam. was given an eight-month suspension following the inquiry conducted by the Disciplinary Tribunal of Singapore Medical Council. Dr Ang’s eight-month suspension had a negative impact on the Group’s revenue and earnings in 2017. That news totally knocked the wind out of TalkMed share price. Since then, TalkMed share price had been a shadow of its former self.

Is it the right time and right place for TalkMed share price? With average three-month trading volume of 0.34 million and 5-year Beta of 0.47, this counter faces poor liquidity despite strong business fundamentals. Notwithstanding these factors, TalkMed is one of those profitable companies that does not have any bank borrowings and has strong cashflows. In this article, I will share my insights on the outlook for TalkMed share price.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in TalkMed before. Whether TalkMed share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

TalkMed share price in limbo

Admittedly, I have missed the boat when I covered this counter back in 2016. The massive run-up in TalkMed share price in 2017 had created much wealth for investors. Of course, things have changed swiftly within the last few years. But it should be noted that those who entered at the IPO stage will still be sitting on very healthy level of profits.

For those who entered this counter at $1.00 in 2016 and still holding on to the shares till now, they would have incurred about 20% of paper losses because of the bonus one-for-one share issue in 2017. Depending on the investment strategies, this group of investors may choose to cut losses and move on to better investment opportunities. Another plausible option is to hold the shares and wait for COVID-19 to blow over (which is only a matter of time).

What about those who have not entered this counter? Is this stock worth investing? In my assessment, this stock has [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: July 1, 2020 — 6:27 am

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