Fair Value: RM 6.64
Current Price: RM 7.50
Recommendation: SELL
The recent quarterly profit which was announced today showed an improvement to the overall current EPS of RM 0.788 from previous RM 0.677. Thus, I raised the Fair Value to RM 6.64 from its previous RM 5.70. However, the current market price is 12.95% above my calculated Fair Value for this stock. Also, there is an announcement today that Hai-O is proposing a Private Placement of 10% of the company shares at a date to be determined later. The Private Placement will dilute the current EPS and thus will further decrease the current Fair Value by 10%. Thus, I give it a Sell rating. Buy back below RM 6.64 as the company's fundamental is still strong.
Refer to previous write-up here for more info about this company.
Famous Writer oh Famous Writer
2 weeks ago
0 comments
Post a Comment