Put my foot again on MBSB at RM2.16 , the main reason is the price is almost stable at this range (downside is limited) and previous Q result is still sustainable even during the cross road of tranformation. Another factor is potential merger with RHBCap.. Anyway good for mid term investment.
Observe the trade volume. When this counter hit top volume the it give signal to tell something gonna happen. Downsize is limited and should be up trend because previous quarterly report was not so bad.
This company was once the darling of investors until EPF took over. In the 80s. under a woman EPF D,G it lost almost 1 billion in losses. Till today I don't think it has recover its losses. As long as EPF holds the reigns, this counter is going downhill. Sell, sell sell before it goes bust
Yeah many got burnt in this counter in the past but with EPF owning 64% this counter is rather safe unless the existing CEO started "stealing" from the company.
lmseng, that's why I am worried cos EPF is now into speculating with EPF money. The old mentality never change. EPF is just reckless with EPF money and they are bound to end up losing big time sooner or later
Most of the investors who keep this counter for a year is still losing money on paper with entry price at around 2.50 vs. the current 2.30. I am one of them.
I do not agree that its mgt or EPF have any integrity problem. I opine that the lackluster performance on share price is mainly caused by the earlier overshot price and the cooling controls on household debt(Personal Finance) imposed by Bank Negara which is the main growth engine of MBSB. Nevertheless after few quarters of the cooling measures, the financial numbers of MBSB are still well performed albeit no more astonishing growth rate as before. I will keep this counter for much longer.
MBSB's PE is relatively low, below 10. If based on a PE of 10, the price should be about RM3.20. If one has tracked the price of MBSB since the recent ex-dividend date, it has a resilient price support level of RM2.16. If one has continued to place buy orders at RM2.16 and below, one would be able to bring down the averaged buying price to below RM2.16, after taking into account the new dividend shares one received at a discounted price of RM2.03. Taking into account the sale of MBSB-OR to buy MBSB mother share and the recent surge in the price of MBSB to close at RM2.29 last Friday, one would have made a significant amount of book gain, which I did.
Maybe this coming quarter result can give thumbs up to management.. from accumulated losses to retained profit.. please check last quarter balance sheet..maybe half year Profit b4 tax above rm500mil.. please check last quarter P&L..Management set target to achieve 1 billion PBT record for this year.. buy before bounce back..
Hopefully fellow investors holding MBSB shares were able to sell some or most of their holdings last Monday at RM2.29 and above. Repurchase MBSB shares when the price reaches RM2.16 again which is the most recent resilient price support level. Chances are the price will improve with the expected announcement of second quarterly results by late July or mid August which is expected to be favourable cum interim dividend declaration. Do not forget to sell once the price improves again. Wish all of us make some capital gains on this stock.
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....
bowman
2,602 posts
Posted by bowman > 2014-06-18 18:03 | Report Abuse
The prices will drop further - SMA3 cutting below SMA26, and under the SMA60