Dear Friends,

At long last Brent Oil Rebounded above USD80

And Both Bumi Armada & AZRB are still good & undervalue

See Bumi Armada

Bumi Armada latest Qtr result 2.38 sen

Annualised 9.52

Real time price 47 sen.

So Forward  P/E = 47/9.52

4.93 

P/E 4.93 means you will double your money in 4.93 years

at 9.52 sen profit a year with Price of 47 sen it means a yield of 20.2%

Compare to Bank FD rate the yield is now 1.75% per year

P/E is 100/ 1.75 = 57.14

If put money in Bank will only double your money in 57.14 years

Of course Banks are quite stable and stocks are violatile 

So must consider the advantages & disadvantages yourself

And NAV is 60 sen

So at 47 sen Armada is selling at 22% discount to Book Value

This shows Armada is undervalue, defensive and good potential

For AZRB see result later this week then SEE

Best regards

Calvin Tan

Please buy or sell after doing your own due diigence or consult your remisier/fund manager

Note: The Rise of Brent Oil is also good for Palm oil as it is used in Biodisel

In year 2014 when OIl was USD100 Jtiasa reached Rm2.60

Then shale oil appeared from USA and hammered Oil prices to below USD60 so biodisel fell in tandem & Jtiasa crashed from Rm2.60 to below Rm1.00

So with the Rebound of Crude OIl we will also see Biodisel oil price rebound and will ultimately cause Jtiasa to rebound again

This will be true for all oil palm stocks as now they have twin engines of growth

1) Palm oil as food (use in 50% of Super market items)

2) Energy - Biodisel