If you were DBS Bank hunting for valuable takeover target, this would be your laundry list:

1) RHB (1066)

2) Alliance (2488)

3) HL Bank (5819)

4) Public Bank (1295)

5) Maybank (1155)

6) CIMB (1023)

7) Affin (5185)

8) AMBank (1015)

If you are an ordinary poker player looking to get more bang for your buck, this will be your laundry list:

1) Maybank (1155)

2) RHB (1066)

3) HL Bank (5819)

4) Alliance (2488)

5) Affin (5185)

6) Public Bank (1295)

7) AMBank (1015)

8) CIMB (1023)

2024 YTD share performance:

Alliance Bank 44.81%

Affin 42.79%

CIMB 41.1%

AMBank 28.78%

Maybank 17.26%

RHB Bank 17.25%

HL Bank 8.79%

Public Bank 3.27%

Market rumors DBS is acquiring Alliance Bank, and if the DBS/Alliance Bank deal obtains BNM's approval to proceed with negotiations, it could set a new benchmark for valuing the banking sector. For passionate investors in Public Bank, this development will serve as a wake-up call for its premium valuation, as forced mergers engineered by BNM may come sooner rather than later.

Buying stock is the same as buying durian. First and foremost, the pricing must be right and the valuation must be good. Many inexperienced stock analysts value stocks based on ROA or ROE but failed to understand the fact behind the figure as financial ratios were originally invented to diagnose financial health and nothing more. Using financial ratios to look for winning stock is like using a stick to determine the quality of the durian. Remember, the most experienced durian picker will use his nose to smell to find the best Musang King.

Warren Buffett famously said that "only when the tide goes out do you discover who's been swimming naked." So sophisticated investors such as Quek Leng Chan or Chua Ma Yu will look beyond financial information and most likely will strip a company naked in order to stress test the functionality of the business model.

If financial ratios were truly magical tools, we wouldn't have seen the financial debacles of companies like Transmile, Perwaja, Aokam, Repco, Idris, Ekran, Silver Bird and Serba Dinamik which caught many inexperienced stock analysts with their pants down. So, it’s wise to view their half-boiled research reports with unrealistic buy-sell recommendations with skepticism. 

In fact, there were talks of the town that even airport cleaners in Subang Airport suspected something amiss with Transmile because the company’s cargo aircrafts were grounded more often than not. Yet, garbage in garbage out, relying on these unreliable financial ratios, all stock analysts called it a strong buy, even misled billionaire Robert Kuok into buying the failed company.

According to SC, no person (including 官有缘，陈剑老师，冷眼，夜月投资) can give unlicensed advice without a license from SC, so you are reading this article at your own discretion, as this article is merely an expression of opinion and nothing more. Just like our grandmom likes to remind us, never take a sweet from a stranger, so it is applicable to whatever you have taken home from i3 forum. If KLCI failed to hold 1580 (as the market will totally meltdown with the return of Trump) and Public Bank failed to hold RM4.40 (the party is over) it is better you do something rather than standing like a deer in headlights.

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