TMakmur is listed at PE 10x only whereas other plantations company is listed at PE 12x to 18x. Even the overpriced Bplant is listed at PE more than 15x.
TMakmur will receive additional income of 20 to 30mil/year for the next 3 years from the bauxite mining plus property income. I think it should have good prospect as long as the CPO price maintains at the current RM2600.
One way to avoid subscribing for overpriced IPO such as BPlant, AAX, Astro, etc is to look for these sign:
1. Major shareholders offers a large number of their existing shares for IPO
2. Stabilizing mechanism by underwriters. (The underwriters will buy shares at IPO price, preventing the price go lower. It means that the underwriter had actually expected the price to go down)
3. Most of the IPO proceeds will be used to pay for borrowings.
sklyte: too cheap, joel, at 700million market cap, the company is not consider a small cap plantation, it should be 11-12x fy2015, you will get around rm2.10, my tp is 2.10 17/07/2014 11:54
super good, 2.30 possible but trade on your own risk
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shlyw
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Posted by shlyw > 2014-07-17 14:55 | Report Abuse
Now this is not worth the price