PE 7 and P/BV 0.76 severely under value. Surplus cash available not duly distributed to the stake holder ! Think better dividend should be in the offering going forward as the price increases going forward .
thanks simctgal, i am fully loaded with something else oh... dont worry.. mfcb is still good despite the close down..... its still not bearish yet.. :P
be patient.. i have a strong believe that this counter will move up, when? no one knows.. since it is undervalue & strong fundamental, i dont see why anyone should quit if you hold this counter. time will tell
Ya.... Cant deny that the company is good in fundamentals... But the inactive share price will depreciate the value of ur invested money... RIght? I believed every shares also got its chance to go up... But definitely this counter its slow and not worth to invest it.. No offense all
so far manage to tp some counters yday. and still holding some others.. ecoworld ill wait for the son.... thplant is doing good.. quite steady during the panic sell this morning ...
Overall much better operating results for the group. However, net income decreased slightly due to high net income base for the previous corresponding quarter 2013 due to other income of RM6.6mil in 2013 compared to RM0.3mil loss in 2014. Besides that, non-controlling interests in the power divisions translated in lower net income attributed to shareholders.
Other positives are a pickup in capital expenditures, i.e. Purchase of property, plant and equipment RM9.190mil.
Negatives is an other comprehensive income (OCI) loss of RM13mil from Foreign currency translation difference for foreign operations RM5.980mil and Fair value changes of available-for-sale financial assets RM7.565mil. Both of which are reversible.
There may not be high growth in MFCB’s business in the future, but it has proven long-term records of stable earnings and good cash flows, beside having a squeaky clean balance sheet. Hence it should be accorded with a reasonable good market valuation. But is it so?
At RM2.24, MFCB is trading at 7.3 times its earnings per share of 30.5 sen last year. Note that MFCB has an excess 157m cash or cash equivalent sitting in its balance sheet. Besides it has about 71m in quoted and unquoted investments, 40m interest in associates and 50m in land held for property development. Despite of these quality assets, its price is only o.8 times its book value.
The cheapness of MFCB is more glaring from the perspective of its market enterprise value (EV). At RM2.24, Its EV is less than three times its earnings before interest, tax, depreciation and amortization (Ebitda), far below the industry average. Earnings yield (Ebit/EV) is great at 30%, twice my 15% requirement. MFCB is indeed traded at a low price in the market.
Suria lagi syok la... mfcb really disappoint me ... luckily i din put in my biggest portion into it... when suria goes above rm3, wooohooooooo.... next tp 3.5-3.7...
i did email mfcb management about my dissatisfaction however they responded me with, there is no issues with the rest of the shareholders... others r very satisfied n happy with it.. did u guys notice each time mfcb will press press during trading hrs n last min magic show 1k / 2k shares at a higher price? what does that means? u know i know lo... but they denied everything... so all in all i am truly disappointed with the management .. which doesnt reward the shareholders..
ohhh, Dividend is the reward for shareholder. I guess you went to a wrong counter, this counter lack of share supplies. Hard to attract big fund, company without big fund play play, hard to go up. unless win big project, or other good news released otherwise. it will go up slowly only. So understand now? You should consider to sell
Yardstick 1: ROE MFCB reported net profit of 740.5m last year. With its equity of 679571, ROE is about 10.90%. this is above 10%, so it is good.
Yardstick 2: Cash flow and free cash flow The cash flow from operations (CFFO) for the last year was 122.6m. This is higher than its earnings. After spending in capital expenses, there is a free cash flow (FCF) of 54.3m left. This FCF is good at 8.64% (>>5%) of its revenue.
Yardstick 3: PER MFCB is trading at 2.32 sen now. With EPS of 33 sen, the PE ratio is only 7.03, or less than 10
Yardstick 4: Dividend yield MFCB paid a dividend of 7.5 sen for the last financial year, or a dividend yield of 3.2%, about the same as the FD rate which is good.
Yardstick 5: NTA The net asset backing per share of MFCB is 2.37 compared to its price of 2.32. Price-to-book is at 0.92, less than 1 which is cheap.
MFCB seems to meet all the criteria of Cold Eye as an investment grade stock
MFCB 2.32 19/06/2014 Revenue 628758 1 ROE 10.90% >10% Good Net profit 107185 Equity 679571 2 Cash flows CFFO 122604 114% Good FCF 54323 8.64% Good 3 PE ratio 7.03 <10 Good Price 2.32 EPS 0.33 4 Dividend yield Dividend , sen 0.075 Dividend yield 3.2% >3.0% 5 Price/NTA 0.92 <1 Good NTA 2.37
Thanks guys for the informations.. It is just not suitable for me.. I would prefer to buy back only when the momentum is there. Otherwise, i would skip it for now..
wait until neck long!must salute kcchong come up with theory but in real life....bye bye!
didn't they say something like stock investment is like watching paint dry or something like that but if you dun want your neck to be long and you want real life action like the one in the movies fast & furious u better go to General Lee's German powered torpedo :)kikikiki
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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....
Kian Giap Yu
45 posts
Posted by Kian Giap Yu > 2014-04-21 19:57 | Report Abuse
PE 7 and P/BV 0.76 severely under value. Surplus cash available not duly distributed to the stake holder ! Think better dividend should be in the offering going forward as the price increases going forward .