tomorrow will go up...merger news ...CATCHA - OTHERS Catcha Media Berhad (“Catcha Media” or “the Company”) - Catcha Media Subsidiaries and Says.com in RM60 Million Merger
We believe Catcha Media could be privatised as private equity funds have approached the company. We gather from a recent visit that management may consider this option if Catcha Media's share price remains depressed. In our view, any buyout price is likely to be above the RM0.75/share IPO price as this will alleviate the pain of long-suffering shareholders. Management is also seeking to sell equity in Catcha Media's subsidiaries, which will establish their valuations. Deep in the money
Catcha Media is deeply undervalued as it trades 45% below our target price of RM0.96/share. We believe our SOP method is transparent as 58% of the valuation is from iCar Asia’s (ICQ AU) market cap on the Australian stock exchange. At Catcha Media's current price, its market valuation is approaching irrational levels as this is 15% below its holdings in iCar Asia. This means investors are getting the advertising and e-commerce businesses for free.
Catcha Media is severely undervalued as it trades at less than the value of its stake in iCar Asia Ltd, ASEAN's top online auto classified portal, which is listed in Australia. This attributes zero value to the advertising and e-commerce businesses and investors are getting them for free.
Our target price of RM0.96/share is based on a bottom-up SOP-based methodology, which implies an upside of 45%. Our valuation is transparent as 58% of our SOP value is derived from iCar Asia Ltd's market cap on the Australian Stock Exchange. Catcha Media has been overlooked and appreciation of its business and outlook is a catalyst. Integrated media company Catcha Media was founded in 2010 by CEO Patrick Grove, a former media analyst with Arthur Andersen. Grove and his partners own 58.5% of Catcha Media while Datuk Justin Leong (5.0%), grandson of Genting's founder, and Star Publications (4.9%) are strategic investors. The company is headquartered in KL and was listed on the ACE Market of Bursa Malaysia in 2011. Since then, the stock has languished, now 30% below the IPO price, due to the different media platforms in its stable that appear unrelated. The company publishes 14 magazines, operates ASEAN's largest online automobile classified portal and owns a luxury fashion website.
KUALA LUMPUR: CIMB Equities Research said Catcha Media is severely undervalued as it trades at less than the value of its stake in iCar Asia Ltd.
The research house said on Friday the Australia-listed iCar Asia is Asean's top online auto classified portal.
“This attributes zero value to the advertising and e-commerce businesses and investors are getting them for free. “Our target price of 96 sen a share is based on a bottom-up sum-of-parts (SOP) based methodology, which implies an upside of 45%,” it said.
CIMB Research said its valuation was transparent as 58% of its SOP value is derived from iCar Asia Ltd's market cap on the Australian Stock Exchange.
“Catcha Media has been overlooked and appreciation of its business and outlook is a catalyst,” it said.
Listed on the ACE Market of Bursa Malaysia in 2011, the stock has languished, now 30% below the IPO price, due to the different media platforms in its stable that appear unrelated
Once the news comes that private funds wants Catcha, then it's too late to get in to make real money. So buy now and be prepared to make you pile. Buyout at least 75 cents & TP is 96 cents.
need to hold this one sometimes for a long time..this counter moves in spurts as weak holders let go n take profit..just leave yur GTC TP oda..good luck...ez 10 cts.
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....
euscilyn
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Posted by euscilyn > 2012-07-06 12:10 | Report Abuse
any comment on tis Stock ?