MFCB is on the uptrend after 5 months of correction.when it reached the peak.at 7.80 in late.August 2020. It looks like mfcb will break its previous record high .MFCB.is still.undervalue with current PE.of about 12 when it has a cssh.cow which can.generate cash of more than 400 million.annually plus other strong growth businesses like packaging and.solar renewable energy. MFCB.deserved a PE of more than 15 if you compared with other stocks which do not have such fundamentals . The total undiscounted cash flow.from Don Sahong power plant for the balance 24 years is more than 10 billions. Don Sahong power has been operating for a year already with proven cash flow .
One financial aspect which many financial analysts failed to notice or appreciate is the net profit margin when compared mfcb with other similar power generation stocks like malakoff and ytlpower. MFCB profit margin is more than 40 % compared with the others which.has less than 5 % margin. MFCB deserve much higher PE than the others just like Harta was rewarded with much higher PE than the other 3 glove stocks in the past.many years due to its better margin.
YES... there is one i doubt myself. but i go through the QR report, annual report, n standfirm n buy more.Cheers.. i really think it need a bonus issue to increase the liquidity, hope the board can do it. It will be a good news.
I agree RJ87! Mfcb is too illiquid and many funds can’t invest as their mandate don’t allow. Trading velocity or liquidity is an important measure for funds to invest. I think the yield is decent as compared with fixed rate instruments and I am sure pension funds will find the yield attractive. Question is liquidity .
You need both big funds and small investors to invest. Otherwise, there is no trading volume. Stocks like Maybank and Sime are only traded by institutions and they just buy and sell among themselves. Boring and predictable . My opinion is that MFCB can attract both institutional investors as well as retail investors as it is a quality stock. Like the glove stocks . You just need more liquidity
I think best to make it exclusive and expensive. Price will be more stable. Take MPI for example. I believe the price will always dip/crash after bonus issue.
Take glove counters for example. Recent jftech too. PBB has been dipping too.
We dont need kaki goreng to push up the price. We just need real investors who understands the value of the stock.
This logic quite accurate...very good for weak stomach....
Do bonus issue price will rally from RM7 to probably RM10...Sell before bonus issue.... Then bonus issue 10:1. Price adjust to RM1, will drop to maybe 70sen. That's a good time to reenter and trust me...will rally to the moon one...Maybe RM5 from RM1 easily. Take SCIB, Penta, Dufu, Pmetal, Vitrox as example. Will have abit of roller coaster in between, with roller coaster more opportunity to make money in between each peaks.
And ur example of PB, PB has made 2 rounds of bonus issue price went upto RM22 the last round.
The equivalent of RM1 to RM5 with bonus issue is RM10 to RM50 without bonus issue. Well, i'm quite sure it's easier for me to by something at RM5 and RM50. What u think?
Mystereo4 I think best to make it exclusive and expensive. Price will be more stable. Take MPI for example. I believe the price will always dip/crash after bonus issue.
Take glove counters for example. Recent jftech too. PBB has been dipping too.
We dont need kaki goreng to push up the price. We just need real investors who understands the value of the stock.
Bonus issue vs splitting . Is bonus of 1 to 1 the same as one share split into 2 ? Valuation wise , both are the same. It is like your original piece of cake is cut into 2 pieces. The word bonus seems to give you a good feeling you are gaining extra but in.actual fact it.doesnt. The only.advantage is that you can sell a smaller piece . Both Topglove and supermx went through share split or bonus issue a few months back. Topglove.split from.one to three while supermx from one to two. Today the values of 3 shares of topglove and 2 shares of supermx are lower respectively than the values of one share before split . Bonus issue or share.split.does not add value to the company.
@RJ87 You do have a point. Definitely with Bonus Issue,you can see faster growth for a short time. Good for profit taking and re-entry. Being cheaper for entry, it is definitely good to play along the volatility. I believe at the end of the day, supply and demand comes into play, and whether if you would prefer to invest as investor, or trade and trader
No it doesn't. But it helps with psychology of 10 RM5 is smaller than 1 RM50. If i'm a beggar, u r more likely to donate me RM5 for 10 times than to donate 1 time RM50.
TG and supermax only have earning visibility for next 2 years top. Can you say the same for SCIB, PMetal, Penta and DUFU? And I left out Vitrox too.
Do u think that 4 counter could reach the market cap they have today without bonus issue in such a short time.
However, I do agree on the point that if bonus issue brings the price down below RM1. Every 5sen up will create a massive selling pressure. I think the right price should be RM1.5.then u can see 30sen up, 30sen up before hitting RM4.5.
RJ 87 , in my opinion ,if a company is growing its earning , its share price will grow proportionately regardless whether it has bonus issue or not . You can disagree with me. I want to.take.a.US stock AVGO as sn example. AVGO.started with 5 dollar a share in 2017 . Today its.share price us 470 dollar . It.has never split I t has grown 94x .
2016 u won't make money, Annualised PAT 120mil(Don Sahong construction begins) 2017, jan17, Dec, 17 RM2.15-RM3.75 74% return Annualised PAT 138mil 2018, u won't make money. Annualised PAT 130mil 2019, jan, 19 - Dec, 19 RM3.08-RM5.5 78% return, PAT 153.7mil 2020, jan, 20 - Dec, 20 RM5.12-RM6.50 26% return, PAT 228mil
Historically, the year with 20mil increase in PAT, marketcap increase by 70-80% Now that the PAT increase to 70-80mil, marketcap should increase to 150-200%
That RM15-RM20 u know? I don't know if u enter at RM1.5 or RM5. But if nobody wanna buy at RM15. It won't get there no matter how good the earnings is. That's why DUFU, PMetal, Vitrox and Penta, Greatec realize this. That's why they did bonus issue and another round of rally.
I will agree that rally just begin. When mgmt realize market cap isn't reflecting earnings, they will do bonus issue to increase liquidity.
Like I say...those oppose increase liquidity is simply because they can't stomach the volatility and pullback. I like pullbacks. Giving me opportunity to sell high buy low few rounds before reach a stage of overvalue.
MPI has less than half the.number of shares of mfcb . Its daily transactions are not high.either but its share.price has grown.3.5 x within.9 months despite the so called " illiquidity ". In my opinion, the most important is whether the good fundamentals of the stock.is in IB.s radar.screen. MFCB was selected by.IB.s as one of the 11 stocks to be owned in.2021. The recent.hike of mfcb prices is a testimony that mfcb was discovered by more and more IB s as a Gems of Bursa. MFCB has all the necessary business fundamentals like growth , profit margin, recurring cash flow, PE ratio to be selected as a good buy. Once it start to pay a decent dividend , dividend yield is the next good criteria of a good buy.
I don't disagree with you on this. What i'm suggesting is introducing some liquidity will unlock it's future value alot faster and maybe abit more.
For someone to buy something at RM15, they would have priced in everything.
But overvaluation only comes with auntie uncle overvaluating it. But of cos, come with a risk auntie uncle undervaluation. However, this error in valuation is the opportunity for people that know it's actual valuation to make money with significantly less risk.
I'm holding 3 position here. MS, CS long, and CS swing. =D ____________________________________________________ pjseow MPI has less than half the.number of shares of mfcb . Its daily transactions are not high.either but its share.price has grown.3.5 x within.9 months despite the so called " illiquidity ". In my opinion, the most important is whether the good fundamentals of the stock.is in IB.s radar.screen. MFCB was selected by.IB.s as one of the 11 stocks to be owned in.2021. The recent.hike of mfcb prices is a testimony that mfcb was discovered by more and more IB s as a Gems of Bursa. MFCB has all the necessary business fundamentals like growth , profit margin, recurring cash flow, PE ratio to be selected as a good buy. Once it start to pay a decent dividend , dividend yield is the next good criteria of a good buy.
Personally i rather put my money here and let it grow slowly without any worry. At least i know is “growing”. I only invested few weeks ago and already more than 15% gain. It is increasing at a good pace.
If i want volatility, i go to other stocks particularly less than RM1 with high volume. Which i myself invest in but with lower capital. If making quick money is your objective.
newbie8080 , I bought my first 2k units in 2016 . I added much in mid 2019 . I have been adding and promoting mfcb since then . My average is about 4.50 。MFCB is still.my number 1 investment in.my portfolio this year .
I agree with this write up...llliquid and no clear dividend policy. If they berani say 50% patami dividend policy, fuh....EPF jump on board, FM jump on board, and become RM35 like MPI
Various efforts needed to help narrow valuation gap. We opine the current valuations for MFCB is unappreciated as it is trading at a forward PER of only 9x compared to the industry’s average of 14x, a steep discount of more than 35% despite its i) steady annual earnings growth of 7-10%, ii) low net gearing level of 0.25x and iii) improving annual cash flows (>RM450m) in the coming years. We attribute the steep discount due to various factors; i) low liquidity, ii) little clarification on the dividend payout policy, iii) slower earnings growth given its current high earnings base, iv) delay in the 5th turbine construction and v) environmental, social and corporate governance (ESG) concerns due to its involvement in the hydropower business. We think the valuation gap could be narrowed through i) the shaping up of its image by participating in more renewable energy projects, ii) more guidance on the dividend payout, iii) raising awareness on its marine protection technology and efforts that had been put in for the local fishery community during the hydropower construction period in Laos and iv) potential bonus issue to boost the liquidity.
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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....
Calvin882
1,562 posts
Posted by Calvin882 > 2021-02-04 09:38 | Report Abuse
Wont sell even reach my TP. Just keep for dividen