$Soup Holdings(5KI.SI)$ what will happen to soup restaurant price on Monday.
A loss was expected. The loss is $1.2 million. A dividend was not expected. The dividend is 0.025 cents. The revenue is $37.5 million. The staff cost is 38% of the revenue or $14.25 million. The net asset value is 2.44 cents and the cash position is $6.9 million.
Soup restaurant is not under financial distress because they can afford to give out dividends. I expect shareholders to hold on to their shares to collect the dividend.
I expect share price to maintain at 6.8 cents to 7.2 cents. If it drops below 6 cents, I will support the share price at 5.x cents and punish any short sellers and weak hands. I have $150,000 to buy 3 million shares at 5.x cents.
Soup restaurant has $6.9 million of cash and annual sales of close to $40 million. If they cut staff costs by 10% or retrench/retire 10% of their staff, they will be able to return to profitability. Other way is to increase revenue by selling more, creating new products and to expand overseas.
I will wait to spend my $1000 dividend eating at my favourite soup restaurant outlets In Singapore and Malaysia.
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