Hi KC, thanks alot for sharing your analysis, I'm a newcomer and have benefited alot from them. I have read on investalk forums that CBIP has a lot of future contracts with big companies, although I don't know how to authenticate this information.May I know what is MEV? Investopedia doesn't have a definition for me. Personally I prefer MBL, but it may be due to sentimentality as CBIP is new to me. I have noticed that CBIP's extraordinary earnings in the past financial year are boosted by it's 2nd Q earnings of 163M which is anomalous ( the other 7 Qs in the past 2 years have been around 30M), but I don't know the significance of this.
I have also noticed that the Net Assets for CBIP have decreased from 2.8x to 1.8x this year? Why so?
Also, CBIP has been doing share buybacks for the past 2 months now, is this a sign of confidence or just the management trying to bolster the price?
And lastly, I have noticed that the price targets for CBIP are up up up, which I assume means people who are smarter than me think it will perform well.
Please do not hold back from giving any advice or criticism, I am but a student ( in stocks and in real life), and will be grateful to learn more.
Please note that the stock price of MBL is more related to Plantation Index. Both MBL and Plantation Index are at the start of uptrend, hopefully the uptrend can last longer so that the stock price can perform to its intrinsic value.
According to I3investor.com, the target price of MBL is 1.40. A potential gain of 41%.
terrorbunny, Yeah I don't think MEV is a common abbreviation. I used it to differentiate enterprise value (EV) from a theoretical value, one you compute its intrinsic value of its ordinary business from its earnings and growth from future cash flows, and the enterprise value accorded by the market, or MEV. MEV is the sum of the market capitalization plus market value of debts, minority interest, but less its excess cash and any other assets not consolidated in its balance sheet.
Yes, CBIP has some extra-ordinary gain last year from sale of an interest in plantation. That EO gain should be ignored as an earnings of its ordinary business. But after excluding that EO gain, its earnings is still very good, isn't it?
There was a 1 for 1 bonus issue for CBIP and hence its reduced NAB. In fact, NAB rose by 31% last year. Share buyback is a good signalling effect that the management thinks the share is undervalued. I don't think CBIP management needs to buy back share to boost its share price. That is no good because share price has nothing to do with the company business operations. Why is the point of doing so?
I personally think CBIP has been doing very well in shareholder wealth creation for the past few years.
Oh wow, not looking very bright today, what might have costed this? Profit taking? Any sifus here that might be able to shed some lights on this? Cheers!
Posted by kcchongnz > Apr 16, 2013 03:28 PM | Report Abuse X
The table below shows how much one earns a year with different measures for having MBL:
Year 2012 2011 2010 EPS, sen 0.186 0.133 0.078 FCF, sen 0.224 0.106 -0.058 Dividend+∂Book value, sen 0.236 0.165 0.077
How do you like a stock, at 1.03 now, earns 18.6 sen, or at a PE ratio of just 5.5. Besides the quality of earnings is high with free cash flow (FCF) at 22.4 sen a share.
A better measure of return could be the dividend received plus the change in book value of MBL at 23.6 sen per share, which is fantastic with the price of MBL at 1.03.
Not forgetting that MBL has been growing its revenue and earnings at very high rate of 46% and 26% a year respectively for the last three years. It has a net cash of 40 sen per share which would guarantee its high dividend payout for the future.
umh, with the performance of MBL so good, the recent past high growth, and how shareholder value has increased for the last three years as discussed in my post above,MBL is worth at least 1.50 as valued by you using Earnings Power Valuation. That valuation method assumes there is no growth for MBL forever. Doesn't it sound compelling to invest in the business of MBL?
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Posted by terrorbunny > 2013-04-23 22:33 | Report Abuse
Hi KC, thanks alot for sharing your analysis, I'm a newcomer and have benefited alot from them. I have read on investalk forums that CBIP has a lot of future contracts with big companies, although I don't know how to authenticate this information.May I know what is MEV? Investopedia doesn't have a definition for me.
Personally I prefer MBL, but it may be due to sentimentality as CBIP is new to me. I have noticed that CBIP's extraordinary earnings in the past financial year are boosted by it's 2nd Q earnings of 163M which is anomalous ( the other 7 Qs in the past 2 years have been around 30M), but I don't know the significance of this.
I have also noticed that the Net Assets for CBIP have decreased from 2.8x to 1.8x this year? Why so?
Also, CBIP has been doing share buybacks for the past 2 months now, is this a sign of confidence or just the management trying to bolster the price?
And lastly, I have noticed that the price targets for CBIP are up up up, which I assume means people who are smarter than me think it will perform well.
Please do not hold back from giving any advice or criticism, I am but a student ( in stocks and in real life), and will be grateful to learn more.
Thank you in advance.