Intrinsic value assuming a 10% growth is RM6.22 according to my DCF calculations. I don't look so much on the price. As long as its a fair price and below the intrinsic value with good business operations and expansion, it'll be a good buy. It also has the economy of scale (world largest manufacturer) and with good expansion plans ahead and rising awareness and use of condoms, Karex is set to rise even further. With rubber prices remaining low and ringgit becoming weaker, there'll be lower production costs and higher profit margin due to the higher gain from forex. At the moment, per capita of condom usage is 3. I think the potential for growth is remarkable. A weak company will not become world's best. The fact that Karex is the world's largest manufacturer, I'm convinced the management team is a strong and sound team. My 2 cents. :)
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....
ampabella
1,378 posts
Posted by ampabella > 2013-12-29 23:40 | Report Abuse
wah lau CIMB target rm3.62 only wor , i thk they wan to sapu this karek burung