Friday, June 6, 2008

Bought Huaan (2739) at RM0.66

After evaluating the result of Huaan and considering the Coke and Coal prices have been up for about 50% to 60%, i expect it 2nd quarter result should be good, since it has already registered a whopping 100% increased in net profit for the 1st quarter.
This time i have to concur with 'toto' about Huaan. Thus, i have bought in Huaan at RM0.66 today. It also declare a T.E 4.55% dividend for this quarter which represent an annual of 3.4% in total. I think is a good dividend overall.
Conservatively, if we calculate based on PE=8 for a fair valuation, Huaan fair value should be around RM0.90. There is an upside of around 40% which i think is worth betting your money in. Giving this counter a medium term till year end, it should be realising it actual value i hope.
The above do not represent a buy recommendation from me, act at your own risk. Till then have a good week end. Bye.

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