MBF Holdings - A Goodie Or Baddie? said...
nothing wrong with MBFH and I believe it is NOT sanbumi...major share holder own more than 66 % and it is cutting dept fast...I think we should give the new management a chance as they took over 2004 Issued Capital: 570mMarket Cap at RM0.50 = RM285mCash flow per share 2005 +19.7 senCash flow per share 2006 +19 senNet gearing: 1.6xNTA/share: RM0.40Net Profit 2005: RM50.6mNet Profit 2006 (estd.): RM26.5m2005 saw a RM32.7m one off gain owing to the deconsolidation of Alamanda Development. The Mandatory General Offer was at RM0.215, and now the share is above RM0.50 ... hmmm... wanna sell or buy?? Basically this pony has two main tricks, one is credit card and the other is the large exposure in plantation, auto merchandising but in Fiji and PNG. The rest are too small to matter to bottom line. The share has surged past NTA and with the kind of businesses they have, they should be at a discount to NTA, the company is not a Rothmans. So, a fair valuation should be no more than RM0.35 at most. Wanna buy some auto merchandising cum plantation in Fiji or PNG?? The high business risk exposure and lack of scalability, plus lack of capital for credit card business caps any interest in the stock. Below RM0.40 it was still good, above RM0.50 it became speculative. Profitable but speculative, and looks to be headed for highly speculative grounds judging from price trend. Looks like main owner is pumping to release some shares as he controls only 50% of company, plus coming through the MGO at the cheap RM0.215 level.
Title:
Posted by:Iwanr
Published :2006-10-31T23:20:00-08:00
Rating: 3.5
Reviewer: 5 Reviews
Artikel keren lainnya:
Belum ada tanggapan untuk " "
Post a Comment