Even although $FKP has disappointed and is not paying dividends at the moment, I think the tide is turning for the company judged on technical considerations.
The share-price is a law unto itself with multiple participant groups jockeying for position to make money out of the company fortunes.
A falling share price is not solely the fault of management.
The market punishes earnings down-grades, whilst those with the capacity to short sell move in and flog the price until the value oriented investors and traders replace them, buying in at the lower prices..
There may be a last fling with institutions, sensing a bargain, push the price lower to acquire more stock. This is a management technique that never seems to fail to prompt wavering retail holders especially to sell out their positions.
Value investors look for a company with sound assets that has strong management and knows what to do, together with the determination to carry out change. Cash flow is important, whilst gearing may have to be reduced by selling some assets. To conserve capital it is often prudent for management to stop the flow of dividends and other distributions to share-holders for a time.
I find TA helpful in providing an insight into market sentiment. In particular, it is helpful to see a bottoming-out pattern, and a break-out to the upside from a trading range. Trading volume may build only to decline after the break-out.
$FKP is asset rich, and should command a higher share-price.
- Should These Companies Split Their Shares? (beta.fool.com)
- FKP Property Group re-building (technicality.me)