Surface an opportunity to accumulate at low. At present RM1.04 consider very attractive as the dividend is almost same with fd. While holding to wait for water restructuring is a good bet at present price. The last q performance is good and foresee the coming q should not too bad.
Dear lukehan, the biggest factor that can affects PBA price is the decision of the BOARD of PBA which consists mostly of politician appointees. These politician appointee do not have the interest of PBA minority shareholder as their main concern. They can suck out money from PBA legally via "water intake Fees to State Government of Penang" and other creative methods. They can also has very high capital expenditure (in the past) eventhrough PBA has very high water safety margin and low NRW (non-revenue water). Although cash flow of PBA has improved since the increase in water tariff, the market is NOT expecting an increase in dividen. The is why PBA is now trade at 3.75/3.3 = RM 1.14 per share , where 3.75 cents represents dividen rate/share and 3.3 cents represent fixed deposite rate of banks.
14. Current year prospects Revenue from sales of water is expected to further increase in line with population growth and higher business activity levels. Cost containment measures are also in place.
Felt so secure being shareholder although see no money but thinking u own the water assets at penang cheaply and provide water daily to penangites. Pround ya...hahaha. cheap n looks like guarantee profit scheme.
So quiet here.. market selling like there's no tomorrow, even counters with good qr results. Hope KLCI luck will change for the better tomorrow. Start of Dec.
Since domestic water tariff increase. EPS has spike up to around 5-6.8..current PE also below average PE all the time. penang has the lowest NRW level in malaysia due to high-density population. High-density population will reduce CAPEX for pipe rehabilitation due to less physical losses on water distribution system.
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....
asdf
366 posts
Posted by asdf > 2016-06-30 10:49 | Report Abuse
Is it true that the company chairman is in trouble?