For the 9-month ended 30/9/2011, Cocolnd reported a net profit of RM10.5 million on a turnover of RM123 million. Based on this earning, Cocolnd's annualized EPD for FY2011 is expected to be about 8.1 sen. Based on this earning, Cocolnd (at RM2.35) is now trading at a PE of 29 times. At this PE, the market is pricing in an aggressive CAGR of 30% for the stock (based on the assumption that the market accepts a PEG ratio of 1 time). This may not be unreasonable as Cocolnd is 23% owned by F&N. For more, go here.
Based on technical consideration, Cocolnd could be a good trading BUY. this is especially so if the share price eased back closer to the RM2.20 level.
Chart: Cocolnd's daily chart as at Jan 4, 2012 (Source: Tradesignum)
4 comments:
Hi Alex
Daiboci also break out?
Hi JY
Daibochi broke above its intermediate downtrend line at RM2.70. Immediate resistance at RM2.90-3.00.
F&N Hldgs has recently increased their stake in Cocolnd to 27.19%. I wonder if this is a precusor to a GO in the near future because F&N would probably want a higher stake if they want to use Cocolnd as a platform for their regional expansion into the snacks and beverage market. Can someone confirm if Cocolnd is already packing the F&N fruit juice range?
Hi robertan
I don't think F&N Hldgs will make a GO for Cocolnd in the near future. It is likely to use its investment in Cocolnd to gain knowledge about the market before deciding what's the next move- whether to strike out in its own (which is cheaper) or to buy-out Coclnd (which is more costly).
I have no idea whether Cocolnd is already packing the F&N fruit juice range.
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