I believe the following are the reasons for the recent weakness. i) shareholders were not informed that the massage staff were getting a significant commission increase last year ii) many shareholders probably not aware that the Chinese GST significantly increased. So these factors have significantly reduced the margins of the business and therefore recent dividend slightly reduced. Also based on the reduced business margins in China I believe TTC may be paying a little too much for the recently acquired businesses. Also absolute lack of liquidity in TTC shares doesn't help when someone wants to get out (even if they only have 100k of shares). Also sovereign risk in China with getting money out of the country + China govt elections late this year + some weakness in Chinese economy.
TA also indicates weakness for a long time and that pushes momentum downwards even with no significant fundamental reasons.
I reckon TTC is a good buy at this price and I bought some at 30c and 32c about 1 month ago plus I hold some in the low 40s.
TTC Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
