Chart: PPBs weekly chart as at Dec 8, 2010_3.00pm (Source: Quickcharts)
The drop on PPB share price comes hot on the heel of a similar decline suffered by its related company, Wilmar International Ltd (which is listed on SGX). The drop in Wilmar share price was attributable to a 60%-drop in its earning for 3Q2010 (here). This has also affected PPB, which saw its net profit dropping by 52% q-o-q or 9% y-o-y to RM288 million for 3Q2010 ended 30/9/2010. For the 9-month ended 30/9/2010, Wilmar's contribution profit contribution to PPB's bottom-line dropped by RM344 million "largely due to weaker performance in its oilseeds and grains segment". In term of valuation, PPB is now trading at 17 times its annualized EPS of RM1.00 (which is based on the EPS for QE30/9/2010 & QE30/6/2010 of 24 & 27 sen, respectively).
While the drop in PPB share price to its accelerated uptrend line may be viewed as a buying opportunity, we have to be careful given the deterioration in its recent financial performance and the sign of weakness in its technical indicators. To be sure, we should wait for a rebound from the uptrend line before jumping into this stock.
7 comments:
Dear Alex,
Thanks for your commenton PPb.
You have any comment on Alam which has dropped to new low today? Prospect ok?
Thanks.
Good day Alex,
Thanks for your reply and sharing. Correct me if I am wrong, I guess GENM now holding cash on hand around RM2.5b after the acquisition . With RM2.5b, are they looking to buy any more asset ? Else, why don;t they pay it to the shareholder to improve the ROE , ROI as well?
Hi Ivan
Will GenM pay a special dividend? Investors have been asking the same question for the past few years. With the acquisition of the UK casinos and the new venture in new York, I doubt GenM will be paying any special dividend this year or next year.
Dear Alex,
Appreciate if you could kindly comment on KFIMA, which has just broke a new high today with a hgiher volume.
TQ
Hi Wilson
KFIMA has broken above the line connecting a "loud hailer" formation at RM1.45-1.50. This breakout could lead to a parabolic rise where the stock may attempt the high of 199=2000 at around RM2.00.
Hi Ivan
Is GenM looking to buy any more asset? I think so. The large cash reserve over has enabled Genting group to acquire or invest in numerous casinos the past few years (in Singapore, Macau & the Philippines). However I must say that the messy way of channeling its cash out by way of inter-company transactions has not endeared GenM to the investors. For GenM shareholders, the day may come when the management would reward them for their patience and understanding- for some of the transactions carried out by GenM served its parent, Genting Bhd better than itself.
Hi Alex:
CCB used to pay high dividend every 1 or 2 years by way of special dividend. Last year nothing come about and do you think this 2011 the co may disbursed a special dividend from RM 1 to RM 2 ? Your comment is much appreciated. Thanks
After paying huge dividend , star is retreating to its lowest level even much below than the adjusted dividend pay-out. So if investors were to buy this stock b4 x-dividend n compared with after x-dividend , usually x-dividend may save you hundred or thousand of RM if you had accidentally bought many shares beforehand. May you comment further in this expects. Thanks
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