It's good that we have some consolidation now to flush out the weaker holders, it will form a stronger support zone at this levels before next rally towards RM3 and beyond.
psd57, reckon people are buying the counter on expectations of better future earnings. Suspect factoring in the forecasted rise in earnings for FY15, the pe will drop significantly to more reasonable levels.
huat2, agreed with you. Thats my thoughts anyways. Still holding onto the counter. Backed by improved liquidity via bonus issue and decent earnings prospects.
I dont think bonus issue is key. The key is still significant improve earnings from the student visa project and MAS training. Market is looking at earnings growth of 50-70% in FY15 and FY16 (june year end). So at 17x PER for FY15 and low teen by FY16...i think it is still reasonable given the strong grow. To be safe, you may want to wait till the next earnings report to be released first but I believe majority of the earnings increment (from MAS training contract) will only come in 2HFY2015.
The foreign student visa project will be expanded from private universities to public universities and language school in FY15. This couples with strong order book of projects (as guided by mgmt in recent meeting with analysts) should lift earnings by at least 30%-40% - and I have not even impute in the earnings from the MAS training project...so may be 50% growth is understating a little bit...
I also heard that Scicom has been invited by a foreign investment bank to Singapore to meet with foreign fund managers this week...and you know how foreign fund managers love this type of story/stock...just look at myeg's valuation - around FY15's PER of approx 30x!
So 'bluesky/ all stars aligned' type of valuation for Scicom - assuming EPS of 12 sen for 2015 @ 30x PER (calendar year) should point towards RM3.60! -- haha, but that is probably stretching it a bit at this time!
My humble opinion is that when link to government project that nobody know like previous dsnoc and presbhd. The shares will shoot once ppl realize. Scicom is the new targeting counter by a lot fund manager. Not longer later u will see it.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Joel
4,580 posts
Posted by Joel > 2014-09-29 12:37 | Report Abuse
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1722769
BELOW IS ONLY ANNOUNCED TODAY !
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1750529