Wednesday, November 01, 2006

MBF Holdings - A Goodie Or Baddie?

esteoh said...
nothing wrong with MBFH and I believe it is NOT sanbumi...major share holder own more than 66 % and it is cutting dept fast...I think we should give the new management a chance as they took over 2004

Issued Capital: 570m
Market Cap at RM0.50 = RM285m
Cash flow per share 2005 +19.7 sen
Cash flow per share 2006 +19 sen
Net gearing: 1.6x
NTA/share: RM0.40
Net Profit 2005: RM50.6m
Net Profit 2006 (estd.): RM26.5m

2005 saw a RM32.7m one off gain owing to the deconsolidation of Alamanda Development. The Mandatory General Offer was at RM0.215, and now the share is above RM0.50 ... hmmm... wanna sell or buy?? Basically this pony has two main tricks, one is credit card and the other is the large exposure in plantation, auto merchandising but in Fiji and PNG. The rest are too small to matter to bottom line. The share has surged past NTA and with the kind of businesses they have, they should be at a discount to NTA, the company is not a Rothmans. So, a fair valuation should be no more than RM0.35 at most. Wanna buy some auto merchandising cum plantation in Fiji or PNG?? The high business risk exposure and lack of scalability, plus lack of capital for credit card business caps any interest in the stock. Below RM0.40 it was still good, above RM0.50 it became speculative. Profitable but speculative, and looks to be headed for highly speculative grounds judging from price trend. Looks like main owner is pumping to release some shares as he controls only 50% of company, plus coming through the MGO at the cheap RM0.215 level.


Rohan_888 said...

Dali, did you read the report in the last Edge (2nd last page), comparing marketcap and trading volumes between some Asian countries over the last 10 years?

I knew that things were bad here, but never suspected it is that bad. By far the worst performer, unbelievable amount of capital destroyed (more than 100 billion USD), and the trading down all the way, dwarfed by so many other Asian countries (except Indonesia and Phillipines).

What do you think about this? Do you have a link to the original article?

Salvatore_Dali said...


sry for the late reply... yes, read the report, sigh, what can u do..

Asset Class Returns In The USA

The brilliant snapshot of asset class returns compiled by Blackrock makes for interesting analysis. See if you can deduce any pointers from...