I think there is a change in chicken business fundamentals. I am no expert, but what i know is that revenue wont grow much, but if you look at the cost of feedstock, I think it has gone down significantly. From what I read, chickens are fed Corn + Soy Meal. If you look at both prices of this commodities, it has gone down significantly. These chicken companies are already making good money for the last few quarters (feed stock prices were low), but now it is even lower. This is my guess why people are chasing and why somebody went on to buy 30million of Teo Seng recently. Just my 2 cents.
Im looking at Corn Futures. Last CAB results was on 1st Q, Corn prices at that time was between 450-500, 2nd Q was between 500-450, but from end of June to now it is 450-370 (370 is now). does this mean margins will be flat for 2nd q but strong for 3q onwards?
江湖救济,有谁看了这期的资滙busy weekly,有介绍cab 机构7174,大概说了什么?我找了 6间 7-11都没了,谢谢了 Quack remedies, anyone reading this issue of Online busy weekly, has introduced cab institutions 7174, probably said what? I found a 6 7-11 gone, thank you
Ami Malaysia stock market share (Cab agency 7174) - Friday, July 25, 2014
Singapore and American partners or into shares of CAB stock undervalued companies or outbreaks of food The company is specialized in poultry food and fast food industry CAB bodies (CAB 7174), the stock CAB agency has been underestimated in the past, as of July 25 at noon closing hang RM0.895, PE ratio is only 6.86 times. I decided to focus on stock items, because the discovery of new catalytic factor, the stock has a chance to challenge new highs, and may exceed RM1.00 psychological resistance line in the short term.
CAB agency founder Cai Asian flavor, but the company has to Cai Cai Yunpeng leading Asian flavor son, took over after Cai Yunpeng ambitious, it is necessary to carry forward his father's company.
Sources "shares the message" contact noted 蔡云鹏 working with strategic partners from Singapore to discuss the latter intends to stake CAB institutions, the way shares are likely to be based on a private placement of equity method. Another international feed manufacturers CARGILL also interested into shares of CAB agencies, CARGILL is a company from the United States, Southeast Asia's largest animal feed suppliers.
If these two institutions to invest into stocks CAB, shareholders background CAB institutions will strengthen the long-term development of the company are very helpful.
I also ascertain the price into shares not yet finalized, it is likely to be set at RM1.10 level. In addition to this latest development, the end of the Muslim fasting month will certainly contribute no small profit for CAB agency. CAB institutional food, chicken and fast food restaurants are in this month turnover rose expected profit will be reflected at the end of the earnings.
CAB institutions will increase earnings per share, even if the PE ratio is maintained at the same level, its shares also have the opportunity to break RM1.00.
NAV CAB agency is RM1.10, these factors can tell us that it is an undervalued stock. CAB agencies other appealing factors include: ★ population growth, the demand for animal protein, especially in chicken demand then increase, CAB institutions benefit from. ★ second quarter because several festivals, especially in Ramadan, CAB's performance will be significantly increased. ★ CAB's processed food exports to different countries, including the United States, Europe, the Middle East, India, China, Indonesia, Philippines, Brunei and Singapore and other countries, and therefore not subject to the regional impact of the economic downturn.
★ successful diversified business, grow fast food business Kyros Kebab robust. ★ success in the retail industry, the creation of a super market - Pasar Raya Jaya Gading
I believe that, CAB short-term goal is to RM1.00, the long-term goal is to RM1.30, the current price is still attractive RM0.895 level, however, as an investor you have to consider all the risks themselves. Article taken from - http://bursa-sharing.blogspot.com/2014/07/cab.html
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....
werewolves
5 posts
Posted by werewolves > 2014-07-25 14:59 | Report Abuse
it's going to RM 1.20 ... a little bird told me ;)