Whatever it is.. P/E is still very low (not exorbitant like certain gorenged counters) and 12 sen dividend coming soon. Also dont count out the potentials for merger and bank status in future.
When FGV was trading 2.02+ guys were waiting to buy at 1.80 and below etc2. When Cimb came off guys were talking of buying when Cimb reaches 4.00+ Buying stocks is not an exact science, guys.
There are many scenarios for MBSB. The best would be MBSB applies for a banking licence ; its major shareholder, EPF can help with this. Local banks are priced by investors at PE multiples of 10 to 15X whereas MBSB is priced at 7.2X despite having a good record of growth as seen by the latest results. Once it operates as a full commercial bank the PE multiple should gravitate towards that accorded to a bank (one can also argue that the earning base of a commercial bank is more diverted than a building society and it's source of funding ie., deposit base would become cheaper) Additionally, one could argue that having a strong major shareholder like EPF would assure depositors and investors alike of MBSB's ranking. If all above materialises, MBSB's PE ratio rises to be 10X which is equal to a price appreciation of 42% from current valuations. On a more optimistic tone, what if the PE rises to 15X? By any measure, with its 10+2 dividend, MBSB is a certain buy at current price. Good luck!
mbsb board is fed-up with all this failed takeover. Wasting their time. They now focus on how to grow their business organically. One of the major step the major shareholder may do is apply for banking license. Fastest way to grow rather than waiting other bank to court them . After courting , they dump their girlfriend. Feel jilted and piss of already.
Happy Gong XI Fa Chai to all Chinese friends here and everywhere. Neighbour just gave me a carton of honey KUM ....neighbours for 37 years. Wish everyone here a better and luckier year ahead....include me please.
It is not surprise for the weakness in share price. It is intentionally so until the company announce the price for Dividend Reinvesment Plan (DRP). It will take 3 weeks from the quarterly announcement to annouce the price for DRP. With lower price, one will receive more shares before the re-rating continue. Those that unaware of what is going on will subject themselves to those that try to lower down the price temporarily.
The One: Errr.. the idea of stay invested and be confident, meaning this is a good stock and if you have long term view, i.e. more than a month, one should just buy. The re-rating will come after they announce the DRP price in 3 weeks time.
And not staying away. Work out, what is your price after the ex-dividend. Then you will know where to position yourself.
Pls dont get me wrong.. I'm still on board. I just asked bcoz I received the msg via whatsapp yesterday.. quite surprised really.. not the normal rates (BUY/SELL/HOLD) but AVOID.. lol
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....
thx2012
197 posts
Posted by thx2012 > 2015-02-17 10:27 | Report Abuse
why Down? why Down? why Down???