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.

Boustead acquires Pharmaniaga for RM534mil cash

KUALA LUMPUR: Boustead Holdings Bhd has proposed to acquire Pharmaniaga Bhd from UEM Group Bhd for RM534mil cash.




Deputy chairman and group managing director, Tan Sri Lodin Wok Kamaruddin said the proposed acquisition involved acquiring 86.81% of the issued and paid-up share capital of Pharmaniaga.



"Boustead Holdings will utilise internally generated funds and bank borrowing for the proposed acquisition," Lodin Wok told reporters after the signing of a Sales and Purchase Agreement (SPA) between Boustead Holdings and UEM Group here Friday

BP says not aware of reason for share price drop

LONDON (MarketWatch) -- Oil giant BP /quotes/comstock/23s!a:bp. (UK:BP. 352.80, -38.75, -9.90%) /quotes/comstock/13*!bp/quotes/nls/bp (BP 29.20, -5.48, -15.80%) , which is currently battling to contain a massive oil spill in the Gulf of Mexico, said Thursday that it's not aware of any reason to justify a steep drop in its share price in U.S. trading on Wednesday. BP's U.S.-traded shares slumped 16% to close at $29.20 on heavy volume as questions mounted over whether it can afford to clean up the worst environmental disaster in U.S. history. BP said Thursday that it continues to keep the market updated on the spill through regular announcements and the response to this incident is its top priority. It added that significant additional cash flow, below-target gearing and a strong asset base above gives it significant capacity and flexibility in dealing with the cost of responding to the incident, the environmental remediation and the payment of legitimate claims. The cost of the response to date is approximately $1.43 billion, it noted

SIME DARBY : Insider Trading

9/06/2010 - Wed
6:14PM SIME Permodalan Nasional Berhad (358,000 Shares Acquired)
6:14PM SIME AmanahRaya Trustees Berhad - Skim Amanah Saham Bumiputera (151,001,500 Shares Transacted)
6:14PM SIME Yayasan Pelaburan Bumiputra (358,000 Shares Acquired)

Comments:-
Supporters, are going out to buy this stock to prevent this share from downtrend. As Savvy investor, we can take advantage with some small position and profit from their share buy back.

BSTEAD : Insider Trading

24/05/2010 Lembaga Tabung Angkatan Tentera bought 792,000 shares.
27/05/2010 Lembaga Tabung Angkatan Tentera bought 3,319,000 shares.
04/06/2010 Lembaga Tabung Angkatan Tentera bought 2,288,000 shares.
 
Comments:-
Lembaga Tabung Angkatan Tentera is major stakeholder. Insider like Lembaga Tabung Angkatan Tentera is the one,who understand well the management, asset structure and profit in this company. Expect coming soon, this company is expanding rapidly and increase its profit.
 
 
 

Boustead Holdings Bhd- Q1 Results

Sales for 3 months ending 31/03/2010 expanded 27.76% to RM1.55 bln. Pretax profit surged 56.33% to RM13

Dialog : Share buyback

7277

Notice of Shares Buy Back - Immediate Announcement
Date of Buy Back : 04/06/2010
Description of Shares Purchased : Ordinary shares of RM0.10 each
No. of Shares Purchased : 1,000,000 shares
Minimum Price Paid For Each Share Purchased : RM 1.050
Maximum Price Paid For Each Share Purchased : RM 1.050
Total Consideration Paid : RM 1,053,665.00
No. of Shares Purchased Retained in Treasury : 1,000,000 shares
No. of Shares Which Are Proposed To Be Cancelled : 0 shares
Cumulative Net Outstanding Treasury Shares As At To-Date : 11,375,271 shares
Adjusted Issued Capital After Cancellation : 0
Date Lodged With Registrar of Company :
Lodged By :

Remarks:
N/A

Submitted By:
Chay Siew Kim