OSK Research said consumer companies will fare better than on average, despite the tepid economic scenario in 2012, which is expected to dampen earnings.
In a research note today, OSK Research said this was mainly due to firm demand for their products, and the fact that the companies had taken appropriate measures while having learnt from the last crisis in 2008/09.
The research company also expects consumer spending to remain relatively stable as disposable income increases, amid the country's low unemployment of three per cent.
"The financial performance of food and beverage (FandB) companies depends mainly on fluctuations in food commodity prices and their ability to maintain low manufacturing costs," it said.
OSK Research is maintaining its overweight recommendation on the consumer sector, with its top picks being QL Resources Berhad, for its uninterrupted earnings growth, as well as Padini Holdings Bhd, for attractive valuation and good dividend yield. -- Bernama
IS Padini RM1.65 over value? I bought Padini in 2004, and the ROI now is 491% and I didn't sell. I bought Padini again in 2009, the ROI now is 220% and I still didn't sell. I bought again in 2011, the ROI now is 58% and I still didn't sell. Never sell a good stock.
If you have invested RM128k in Padini stock in year 1998, your stock now would worth RM1.65 million now, and you would have collected RM238k of dividend. Your ROI including dividend would have been 1475%. and a CAGR around 23.63%. That is really impressive.
I think if you want a 20% CAGR, buying Padini at RM1.65 is not going to reach your target. please refer to my blog for valuing Padini. http://malaysiaequityinvestment.com/
2012-04-28 00:51
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IS Padini RM1.65 over value?
I bought Padini in 2004, and the ROI now is 491% and I didn't sell. I bought Padini again in 2009, the ROI now is 220% and I still didn't sell. I bought again in 2011, the ROI now is 58% and I still didn't sell. Never sell a good stock.
If you have invested RM128k in Padini stock in year 1998, your stock now would worth RM1.65 million now, and you would have collected RM238k of dividend. Your ROI including dividend would have been 1475%. and a CAGR around 23.63%. That is really impressive.
How should we value Padini now? Please refer to my blog. http://malaysiaequityinvestment.com/
2012-04-28 00:50