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.

Posted by Ooi Teik Bee > 2013-04-23 22:58 | Report Abuse

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%.

Thank you.

Posted by wayne1982 > 2013-04-24 08:42 | Report Abuse

I prefer on it DY and it growth ROE...

Posted by kcchongnz > 2013-04-24 10:59 | Report Abuse

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.

Posted by Alex Chong > 2013-04-24 11:48 | Report Abuse

Both also a solid and good earning counter.

Posted by sephiroth > 2013-04-29 16:48 | Report Abuse

Down so little, no fun

Posted by fishbone > 2013-04-29 20:49 | Report Abuse

Supported by good dividend yield

Posted by fishbone > 2013-04-29 21:18 | Report Abuse

Its dividend yield is about 10%

Posted by Tipster > 2013-04-29 21:22 | Report Abuse

MBL income not recurring. Diff to value

Posted by Steve Jub > 2013-04-30 09:32 | Report Abuse

dividend really 10% yield so high?

Posted by sephiroth > 2013-04-30 15:05 | Report Abuse

go down a little bit more, 0.97 also sapu

Posted by Steve Jub > 2013-04-30 15:46 | Report Abuse

u sapu already sep?

Posted by sephiroth > 2013-04-30 16:47 | Report Abuse

i taste some at 1.01

Posted by KC Loh > 2013-04-30 17:03 | Report Abuse

Final dividend proposed in AGM. Another 3 sens! This stock valued 1.3x TP

Posted by Tipster > 2013-04-30 18:10 | Report Abuse

i think the profits are small... how often do they build palm oil mills?

Posted by kcchongnz > 2013-04-30 18:30 | Report Abuse

Why do you say the profits are small? In relation to what? What is the largest agriculture industry in Malaysia?

Posted by georgelim > 2013-05-02 10:26 | Report Abuse

Hello KC Loh, mind to share the news article link? I can't find the latest dividend announcement through here and google. Anyway, 3 cents is good! :)

Posted by KC Loh > 2013-05-02 10:33 | Report Abuse

http://klse.i3investor.com/servlets/anpth/903928.jsp

Posted by Steve Jub > 2013-05-02 10:42 | Report Abuse

meaning 3% dividend yield ya?

Posted by sephiroth > 2013-05-02 10:48 | Report Abuse

Full year 10 sen or 10.15% yield

Posted by sephiroth > 2013-05-02 10:52 | Report Abuse

This counter so stubborn, cannot push down, 0.96-0.97 pls

Posted by georgelim > 2013-05-02 10:56 | Report Abuse

Thank you very much KC Loh!

Posted by Steve Jub > 2013-05-02 11:05 | Report Abuse

supported by div kua

Posted by kevin5059 > 2013-05-02 17:10 | Report Abuse

I more greedy, I wish to get at 0.935. :)

Posted by Steve Jub > 2013-05-03 09:43 | Report Abuse

now ok or not?

Posted by sephiroth > 2013-05-03 09:46 | Report Abuse

buy after 4pm

Posted by Steve Jub > 2013-05-03 09:48 | Report Abuse

ic ok

Posted by sephiroth > 2013-05-03 11:22 | Report Abuse

0.98 now, maybe 0.96-0.97 after 4pm

Posted by iafx > 2013-05-03 11:26 | Report Abuse

if majority r waiting after 4pm, the price will go up instead :D

Posted by Steve Jub > 2013-05-03 11:37 | Report Abuse

hehe..maybe

Posted by fishbone > 2013-05-03 22:52 | Report Abuse

buy next week..

Posted by alenac > 2013-05-03 23:05 | Report Abuse

No much accumulation for the last few months. Probably influenced by weak palm oil prices.

Posted by sephiroth > 2013-05-04 10:12 | Report Abuse

Hopefully mon can drop to below 0.95 for my super accumulation

Posted by faberlicious > 2013-05-04 11:30 | Report Abuse

sep,at 95 sens lots of "sharks" waiting to sapu :D

Posted by sephiroth > 2013-05-04 14:24 | Report Abuse

Cunning small fish can swim thru the shark and makan without being noticed

Posted by sephiroth > 2013-05-09 16:40 | Report Abuse

Mr MB Lee wake up already at 1.10

Posted by sephiroth > 2013-05-10 09:10 | Report Abuse

1.14 now, ex-date for dividend coming up???

Posted by tralala > 2013-05-10 12:48 | Report Abuse

dun sell yet... can go higher

Posted by houseofordos > 2013-05-10 16:00 | Report Abuse

got dividend announced ? wow that would be a bonus...

Posted by tralala > 2013-05-10 17:33 | Report Abuse

bo... gt "news"

Posted by sunnysiow > 2013-05-11 17:28 | Report Abuse

MBL WA now is RM 0.415, can sell?

Posted by georgelim > 2013-05-14 15:55 | Report Abuse

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 houseofordos > 2013-05-16 07:45 | Report Abuse

this stock is worth at least RM1.5 ... i plan to pick up more on retracement

Posted by kcchongnz > 2013-05-16 10:40 | Report Abuse

houseofordos,
Do you have six sense?

Posted by kcchongnz > 2013-05-16 10:48 | Report Abuse

I mean sixth sense

Posted by sephiroth > 2013-05-16 11:03 | Report Abuse

any news???, sudden surge to 1.25 and now back to 1.20

Posted by faberlicious > 2013-05-16 11:14 | Report Abuse

sep, if there's news,must be good news,going north mah.

Posted by kcchongnz > 2013-05-16 11:21 | Report Abuse

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.

Posted by houseofordos > 2013-05-16 12:45 | Report Abuse

KC, no sixth sense, simply using EPV calculation method you explained before... with a 10% cost of capital.

Posted by kcchongnz > 2013-05-16 15:36 | Report Abuse

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?