By definition ROE is not EPS/NTA but the value is quite close,thank to our accounting system that the value of intangible asset ( like special right, brand name, wide moat etc.) is not included in the balance sheet. In most balance sheets ROE=EPS/EQUITY PER SHARE is only slightly smaller than EPS/NTA sometimes can be equal if there is no minority interest included, this explain some people mistakenly use ROE=EPS/NTA.

just list the essential data for you to compare with another stock KFIMA.

KFIMA RSAWIT

P/BV 0.864 1.35
ROE 15.5% 11.9%
Debt/Equity 0.03 0.43
EPS 30 sen 5 sen
Coming Div. 8 sen 1.5 sen

I'm sure you can tell which is the better value stock.

Kfima has considerable % in oil palm plantation, the company is doing alright , result not bad, just announced yesterday , 30 sen EPS 8 sen div.

Thanks jacklew, I'll focus on mudajaya.

This is what I said before ' durian HAS DROPPED , the season is over ' . So let's look for other flowers blooming orchard, any suggestion friends ?

With the share dilution and bad Q1 result, do you think that you can get 62 sen div.? You should be happy if you can get 6.2 sen which I think should be lower if any.

5 sen from 55 sen =10 sen from rm 1.10, better than UOAD which gives 10 sen from its price of rm 1.50.

For the future earning and the jobs obtained it may be of the same level with FY2011 or slightly better, the coming Q1 result will give some indication.

With Q1 at a loss , even the remaining 3Q turn in good result say 20M each, the full year net income will be 60M and the EPS will be 60/538=11 sen only. Unless the earning improves it will a long time to come back to RM 2.00.

Mitra 5sen div. just confirmed, x-date 15-08-12.

Here are the data of two stocks may be useful to you all :
1) Multico
P/BV= 0.8
2011 ROE= 17.9, debt/equity= 0.11
2QFY12 = 12 sen , annualised EPS=25 sen
1st interim 3 sen paid, final div. can be 3 sen or more

2) Hua Yang
P/BV=0.8
2011ROE=20.8, debt/equity=0.38
3QFY12=27 sen, full year estimate 36sen (will be announced soon, may be tomorrow )
first & final div. will be 8 sen or more

If anyone has better info, please share !

euscilyn, let's me put in this way, if you think that 1.50 is undervalued then you don't have to worry of the further drop in price for you can buy more undervalued stock, and one fine day it will come back to its FV. But I consider this price as FV not undervalued,moreover as I said before the season is over and we may have to wait for the next season. Take your time to decide for it may not drop to this price to call for your decision. Hope it may help.

It will , but it will be next season.

Frankly I won't go into this stock at this moment, I consider it as ' durian has dropped ' the season is over.

You are right, Jacklew, when we trade with speculative stock we have to put in the cut loss plan. What I'm trying to say is that for a fundamental good stock it may not be necessary. Hope I won't mislead yfchong.

Ram Cheong ) no, the 5 sen is the proposed div. in its Q4 FY2011 report and is most likely to be paid in July: the other 5 sen or more is the estimated FY2012 div. This company pays good dividend; its 2011 EPS is 10 sen and it's going to pay 5 sen.

My average is 79 sen and like to huat together with you all, but I always wonder why the sellers of the 5.7m units on Friday may not want to huat with us. Any reason for why they sold their shares for such a small gain ( 1 or 2 sen only ).

I guess it's like the option market where 80% will be out of money.

In the option market every buy call or buy put has to be matched by sell call or sell put. The sellers get only a small premium ; leaving it to the market force ,about 80% of the warrant will be out of money. We have no option market here and the banks know about this advantage so they come up with these Call warrant in KLSE. I leave it to you to consider their advantage if they have the ability to kill the Call warrant.

Thanks cp, you cleared my point.

If you are not traders and buy only undervalued shares,it is not necessary to cut loss. In fact you should buy more when the price drops for the shares become more undervalued.

Mitrajaya is one construction company worthy of considering. Its dividend yield measured on five years annualized basis ranked the highest among its peers. At the moment the share price is low and another 5 sen dividend is coming.

I think their employees keep selling their share ( obtained from the ESOS @ 1.48 ) even though it is a good stock.

Last year I bought the stock at RM 0.48 cum div. of 1.5 sen, since then the price has been lingered at this level except the few days after the announcement of the bonus & right, it then drifts back to this level which I think, is its strong support.

You are right Invest, but I can't help it , with the news that may give such a good extraordinary gain, I must take position and how do I know that the news gave the -ve effect. I could have saved some money buying at a lower price. Anyway what is done is done just hope that the due can really bring in some gain to the company.

Can't help falling in love with LBS, joint you all at .89 to cheer..........cheer! LBS.

IT will come one day. At this moment it's good to accumulate as its value is increasing steadily year by year.

Price may or may not increase, but next FY will still give a dividend yield of 10% based on its order book, performance and high payout ratio of about 50% . After ex dividend ,the investment cost of this stock will be 50 sen which is its strong support level and if the price moves up slightly, it will be an extra gain for this investment. To me it's good enough, for I expect only 20% gain if not more in most of my investment and that can be attained if it moves up 5 sen within one year. I'm confident the 20% or more gain can be reached.

Interestingly whenever there is a stock gaps up 1 or 2% with large vol. after a good write up from analyst ,the buyers always jump with excitement saying that ....is coming! Why very few people consider the sellers side, if it is so good , why they sell ?

Very simple, push it too high few will opt for DRS .

euscilyn : I have yet to buy LBS, I'm waiting for its 1Q result and watching it closely. If it is so good like what others said (with the extraordinary RM 1.00 per share, couple with good earning), even with 20 sen increase in price I'll still go in. If I want to buy now, I'll wait for some correction.

It has been mentioned in the other post ( LBS BINA ) that the net income should be higher than the consensus of 42M and the CEO said that the company is likely to pay the dividend more than last year 7.5 sen; hey yewkhian durian dropping !

Thanks for the info, enjoy posting with you!

I may be wrong, But let's consider this:-
ROE=net income/equity
net income=EPS x no.of outstanding share
equity=NTA x no. of outstanding share
so ROE=EPS/NTA unless equity is not NTA x no. of outstanding share. Now I'm not so sure, hope you can help.

To bro looii3 go to ft.com ( financial time .com ),lots of info there.

Bro Kim Yap Lau, you can try ft.com and search the company you want under < quote > you'll get all the info there. Try first ,If you want the detail I'll give you later.

Yes, Bro KIan WEi 80%/15%=5.333 and that is PE. You can consider PE as P/NAT divided by EPS/NAT =P/EPS=PE=PBV/ROE. Am I right?

Another important consideration is that they must be willing to pay us:- the minority share holders.

To sum up, a reasonably good stock should be the one having gearing of 0.5 or less, ROE of 15% or more, better still if P/BV is 0.8 or less. This will put the PE to 5.3, it's not easy to find but there some if you scan the market slowly.

I'll joint you later, I'll be happy to see that you all have 20 sen ahead of me.

No, this means this FY profit will be at least RM1.20 if it really makes this extraordinary gain of RM1.00. Funny, why the sellers don't consider this.

Why? Any bad news?

Thanks for the info, will watch LBS closely.

We shouldn't consider the PE as 3.4. We are buying forward, so the next PE should be the price divided by its next FY estimated profit (about 10 cts); that is 0.60/0.10= 6. This is the ave. PE of most small cap. property counters: like Mitra 0.55-0.05/0.10=5 ( 0.05 is the dividend ) and Hua Yang 146/34=4.3 . What about LBS and others?

Don't forget Hua Yang, Q4 just ended,net profit will be higher than the consensus 42M and the dividend may be more than last year 7.5 cts. ( CEO said that )

again I made such a careless mistake, the bet is on the take over and NOT so much on its value

Not to worry of the Q4 result,even it turns out -ve the NTA remains intact. The bet is on the take over and so much on its value.

correction on last post : it has broken its SMA50 line and not SMA200 line, sorry for the mistake.

ECM strong support is at .78 even though it has broken below its SMA200 line. Unless the market drops badly like that of last Sept. it is hard to drop below this level. So the downward risk is small and the upward gain ( well you know, if the due goes through ) would be at least......?. So I'll take bet, hope more will joint.

TQ theews82, we are now in a better position to estimate its next year profit. Let's see its next few quarters first before we make any prediction, meanwhile just wait and collect the dividend to reduce our cost.

From the UOADEV income statement the net income of 384M is with the value of 205M as the fair value adjustment from the properties investment. I think this is a one off added value( I'm not sure, can anyone help?), so next year net income without this value will be much lower . This may be the reason that it remains at this level

Hua yang and LBS both are good performing counters. To make the choice I will focus on Hua yang first, the Q4 result will be out in May; EPS will be about 34cts for the whole year. To be able to level with Hua yang LBS must turn in at least 20 cts EPS for the next year which means the rev. must be about 700M ( shouldn't be a problem if the forecast of 800M+ by its CEO can be achieved) ,the next 3Q can give us the indication, so I prefer to wait and see meanwhile get the best out of Hua yang first.