Favco, which is a company owned by Muhhibah has a TP of 3.35 (has the 40% return upside from the current level) has been doing very well this week. So Muhibbah which has a TP of 2.15 (has the 70% return upside from the current level) which appears more attractive than Favco should start doing well and catching up with Favco. People will start shifting their attention to Muhibbah soon.....
whether this will go to 1.45 or not nobody knows unless u're an insider but it has gone up a lot since from the low of .81 a few weeks ago and the APH is a non issue as they've already made a larger provision for it in the last quarter. Infact the reason for much of the surge is because the uncertainties of APH issue which drag this price from the highs of 1.90+ to the lows of .80s. do not forget that Muhibah is still trying to claim back the cost of APH project and if successful this will propel the stock higher. they still have good consistent returns from their cambodia airport concession and with the booming O&G their subsidiary Favco getting more cranes works will be a boost to the share price and any contracts win. Mid to long term investment of this counter is good but short term might have concern due to GE and profit taking - my 1/4 cents worth :)
And... If you look at their 4Q12 result, without the APH provision and without revaluation of property, their PBT is actually RM57m. That is significantly higher than 4Q11 (RM30m), 1Q12 (RM25m), 2Q12 (RM29m) and 3Q12 (RM36m). If they can sustain their profit at this level, there will be more upside to come.
Exactly well pointed out soonjinhou :) I think this stock has left all it's troubles behind but then again also has gone up 50% from it's low for the past few weeks. nevertheless I think it still has upside potential in the mid to long term - just my 1/4 cents please dun follow me :)
from my remisier's connection the last time she told me about Pantech but 1 day early (see my posting in Pantech)....Pantech goreng is still on collect both if u can hold or jump in when the volume build up if ur cash is limited good luck to all of us!!!!
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....
sephiroth
14,145 posts
Posted by sephiroth > 2013-03-22 10:02 | Report Abuse
Suddenly Kenanga TP increase from 0.87 to 1.46 within few mths