Saturday, June 12, 2010

Undervalued Stock : Boustead Holdings Berhad

Relative comparison between Plantation Stock in KLSE

Stock          Market Cap          P/E         DY          Our Rating
BSTEAD     3328.175              9.65        6.28       BUY
IOICORP  33177.334           33.74         1.61      Strong SELL
KLK          17122.780           27.94         2.49      SELL/HOLD
SIME          47053.602          20.58         2.60      SELL/HOLD

Comments:-
As Intelligent Investor, i would like to rate BUY BSTEAD for long term play. With acquisition of Pharmaniaga, the BSTEAD will able to increase its EPS rapidly. We should able to see the change. BSTEAD is out of favor stock, we like this stock because out from Analyst's radar.

Big Cap Plantation  Stock like IOICORP, KLK, SIME DARBY, are provide low return yield. Current price is not really attractive, why do investor waste their hard earn money to pay for rich valuation stock.

A strong fundamental stock like BSTEAD can provide better margin of safety if double dip happen. We're cautious about the recovery.

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