It's great to be back after a looooong break post CNY season. Looking at some of the companies earnings and estimating their fair value using simple Quaterly EPS (earning per share) with annualised PER of 10.
Telcom Axiata Q eps = 7 sen. Fair value = 7 x 4 x 10 = 280 or RM2.80. Current price is RM3.90 which is 1.39 times more or at PER 13.9 which is still cheap considering the average PER for telcom industry is approx 17. So I'm still holding onto my Axiata. Waiting for two catalysts:; Axiata maiden dividend and/or some filthy rich investors buying into Axiata for its South East Asia mobile tel operation
Telcom Digi Q eps = 31.7. Fair value = 31.7 x 4 x 10 = 1268 or RM 12.68. Current price is RM22.30 which is 1.759 times more or at PER 17.59. I bought Digi at RM22.00 and have since received dividend abt RM1.78 which brings a annual yield of 8%. I will continue to hold Digi long term given its attractive dividend of 8%, its strong support at RM22. Look to add if ever it slide to RM20
Maxis Q eps = 6.7. Fair value = 6.7 x 4 x10 = 268 or RM2.68. Current price is RM5.40 which is double or at PER 20.15 which is higher than the industry 17. Paying interim dividend of 6 sen per quarter, it is expected to give an annual yield of 4.4%. I don't have any holding on Maxis and may buy in at RM5.20 level.
GenM Q eps = 6.3 sen. Fair value = 6.3 x 4 x 10 = 252 or RM 2.52. Current price is RM2.78 which is at 1.10 times higher or at PER 11 which ia attractive, given it cash rich position. Still accumulating GenM for its potential special dividend when Gen Bhd needs to milk GenM for its cash to cover GenS expenditure/losses.
Supermax Q eps = 16.4 sen. Fair value = 16.4 x 4 x 10 = 656 or RM6.56. Current price RM6.20 is below PER of 10. Still holding onto it for its dividend and bonus issue 1:5
Adventa Q eps =6.4 sen. Fair value = 6.4 x4 x 10 = 256 or RM2.56. Current price RM3.50 is 1.367 times higher (or at PER 13.67). I think Supermax offers better value.
Maybank Q eps =14 sen. Fair value = 14 x 4 x 10 = 560 or RM5.60. Current price at RM7.00 is 1.25 times higher (or at PER 12.5). Recently declared dividend of 11 sen, ex. 2/3/2010