I don't think there will be any merger. It's just hot air newsflow by vested parties to stimulate buying and selling activities to generate profit-making. With the current volatile, uncertain market scenario, negative credit integrity rating, low saving deposits in banking sectors, the impending impact of GST, the increasingly competitive financial and banking landscape, CAUTION is the word of the day. Remember the failed TRI-merger revealed alleged bad provisioning standards by MBSB? Remember EPF became largest shareholder not by default but by financial technicality? EPF prefers to be investor. Remember EPF also plans to invest more in foreign equity? Remember forays into overseas banking initiatives by big brother CIMB ended in disappointing results? EPF & BIMB shares common Chairman, possible conflict of interest? ... many more questions which warrant thorough deliberations. Any likely merger will take some time after macro-economic catalysts have stabilised.
"MBSB sticks to its plan to be a commercial bank", 17-01-15, Star Online, BizNews should help state again strongly that whether or not there is a merger, the direction Mbsb is moving is the right one. More than this, there are other info to be drawn from the article which are encouraging. Also, given its PE is 5+ etc2,it should be viewed that current prices is very reasonable for the investor. As for the Dow, the fall on Friday came on the news of better jobs data, which as they put it, raises rate fears. I think it is completely not in the interest of the US to raise interest rates at this stage. Interest rates hiking should be further delayed or nominally raised to position the US economy vis-a-vis inflation. It would be exuberant to think that the US economy is steaming ahead though it is slowly getting better apparently.
The price will ding dong around the price range od 2.19-2.23. With the weak ringgit currency and consumer sentiment tracking the imminent impact of GST in April, most banking institutions will seek consolidation of their capital base and cost-cutting opex for the next 6-8 months.
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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....
i3i2i1
4,731 posts
Posted by i3i2i1 > 2015-03-03 12:24 | Report Abuse
theoretical swap ratio of 1.52 MBSB share for 1 BIMB share.. which worth to buy?