Park Ha Biological (PHH) Shares Plunge 10.43% on Share Incentive Plan

Park Ha Biological (PHH) shares plummeted to a record low today, with an intraday decline of 10.43%.

The strategy of buying PHH shares after they reached a recent low and holding for one week resulted in a significant loss. Over the past five years, the strategy returned -73.82%, while the benchmark return was -100.00%. This indicates that the strategy not only failed to recover losses but also underperformed the benchmark. The Sharpe ratio of -0.45 and maximum drawdown of 0.00% suggest that the strategy carried considerable risk, with a maximum loss during the backtest period.

Park Ha Biological recently filed Form S-8, adding 4.5 million shares to its 2025 Share Incentive Plan, raising the total to 7.5 million shares. This move could potentially impact stock dilution, as the increased number of shares could dilute the ownership percentage of existing shareholders.

Additionally, the company has experienced significant volatility in its stock price. In the past week, PHH shares dropped by 97.31%, but there was a subsequent increase of 19.99% in share price, bringing it to $1.32. This volatility could be attributed to various factors, including market sentiment and investor reactions to the company's recent filings.

The CEO, Xiaoqiu Zhang, saw their holdings value increase by 35% as of June 26. This increase in holdings value could be due to the recent increase in share price, which could have positively impacted the value of the CEO's holdings. However, the overall market value of the company remains at $29.0 million, indicating that the company's market capitalization has not significantly changed despite the recent volatility in its stock price.