Will khazanah sale the state in proton to DRBHICOM?

There are many round discussion that government want to sales the state in proton to foreign entitiy. Most of the discussion fail due to unable to sustain the morality and costs of sales. Khazanah state in proton average at RM 8 per share. Current stock price proton at 6.4 or low. Not justify government to sales.

Most important issued here is "Face " or malaysia government reputation. If selling directly to foreigner. Government reputation may affected. Selling to DRBHICOM is good option. DRBHICOM later may bring in foreign investor. Eventually DRBHICOM will take over proton. Latest news that DRBHICOM already submit the proposal. Change governent given approved is high. If approved, stock price for drbhicom will relect the valuation .

DRBHICOM: Take over proton?

Anyone realised just before christmas. DRBHICOM volume and price both are high to RM 1.71. This is 5 month high. And pending for government approval for take over proton. I believe the change for DRBHICOM getting the deal approved is very high. The share price still below May 2006 peak RM 2.17. I believe is show time for this counter. The approval may be granted soon.

Bursa Malaysia : top mid cap pick :MAA

This stock have been call, since it bull market is my previos article Top pick mid cap 2007. The performance is inconsistent last few year. Quarterly making loss due to exceptioal item for Q30/6/06. Overall it is profitable. Insurance company will be direct benefit from Bull market. The performance will show reasoable in next quarter onwards. Government may restructure the insurance industries. After the finance institution. MAA is target to be merging. Current price RM1.70. is good price to accumulated. If you see the the historical data. and 12 month at high at RM3.00. If from this view. They are big room for this counter to move up.

Bursa Malaysia :Call Warrant update :18.12.2006

As table show, the market continous consolidation. The Call warrant most of them drop sharply and premium reduced again. This in line with my previous call, waiting at sidelines http://topbursa.blogspot.com/2006/12/call-warrant-update-081206.html to see whether market correction and pull back. The market consolidation may continous for sometime, Avoid those accessive premimum and expired soon CA.

Only concentrate those CA with minimum premium or even discounts (Maybank Ca,Tenaga and Commerce). At the meantime, those lagging mesdaq may move even market consolidated. Today star is Resort , so Resort CA show stable. It market correction end, This kind of
CA will show sharp rebound.

Bursa Malaysia:Mid Cap top pick for 2007

Selection criteria:
1.Up below 10% from oct 06 to Nov 06
2.PE below 15
3.Market capitalised between 500 m to 4000 M


Shell

Main profit contribution from refinery process, from Q2 profit margin down due to higher costs of processing, and material price.Oil price up to 62 US per barrel. This is advantage to SHELL . Anywhere it is high dividend yield stock. If oil price maintain high.It may be selected as next rally counter. Current price level still below the year high.

Titan

As my previous blog, indicate that Earning improved and PE is very attractive, but high oil price will reduced it profit margin. High gearing it may be another inherent risk for this counter.

Orient

Selected due to it conservative management, Good PE and low gearing (11% D/E) and Big Cap.
Current price 4.5 and with PE 8. Still far from market average PE 14.

MBM

Perodua car , Kelisa and Myvi Most successful malaysian car company. There is possible merging in car industries. MBM resource is top pick for the industries and most beneficially on it.

I&P

Famous property developer in klang valley. Selected due to cap more than 1000 m and current price only 0.5 on NTA.

Unisem

Top pick for semi conductor industries, Will be benefit from recovery on the industries. Profit may anticapted better than
average.

MAA

The direct benefit from bull market, current price RM1.80. Compared to year high 3.00. Still a room to increased.

Scomi

An hot red stock in bursa malaysia, Involving in multi business. May continous put attention from the eye of investors.Only concern is high gearing. The company shall work hard to reduced it.

NCB

Port operator for port klang. Need put attention here is this company is debt free company. Market cap is more than 1000m.Trading in 0.7 of NTA.

Uchitec

Supplier of coffee maker to the world. Limited capital expenditure requirement , min 70% profit as dividend. Need put attention here, it is Debt free company.


Conclusion

There are 11 been listed , Which one is good ? Both 11 is good. Depend your investment habbit.

For aggressive type.
May consider Scomi,MAA, Unisem , hope growing or improving performance
For Conservative type.
May concentrate on I&P, Orient, MBM . Looking for their respective undervaluation.
For retiring plan investor
May be can try those high dividend yiled stocks like uchite