The impending dividend in the coming q of GAB would likely to spur the price higher couple with good result expected about 15% increase due to the World Cup season recently. The actively acquisition of GAB shares by Aberdeen, MUFG & Credit Suisse have certainly added some spike in price as well. Approximately about 30% shares floating in the market, up surge of price is just make simple even with relatively small volumn of shares transacted. No sign of pausing as yet, how high will it go ??
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This morning, sold off all PJ development at 73.5-74sen in second portfolio and partial stake in first portfolio, realize marginal gain and free up more margin line.
Portfolio have also sold off all OKA at 67-68sen last week, realize more than 10% profit margin.
Portfolio have also make intraday gain on complete logistic this morning, bought 51-51.5sen, sold at 52-52.5sen. Complete logistic currently trade cum dividend of 3sen TE.
congrats bro..
GUINESS at record high price! I strongly agree. It’s hard to understand the market. Mad or crazy. Now let us sit back and ponder. What’s a fair value for GAB at this point in time?
This year after releasing 3 quarter’s figure. EPS for the past 9 month being at 24.89 sen. Project it into 4th quarter from the last 9 month’s rate it should read 33.19 sens. That’s not even on par with last years earning? Which stood at 47 sens per share.
So at current price on the board at RM8.03 / share, it’s a bit high say if we look at the projected EPS of 33.19 sens / share then the PER is some 24 X!!
Say the last quarter is exceptionally good and raked in an EPS 22.11 sens to mark up the year’s EPS to that of last year’s 47sen EPS. Even then PER would be some 17 X, not too cheap either. Just more reasonable or rational. Now to end this year with 22.11 sen EPS is a very very tall order considering the whole 3 quarters’ income is just somewhere at 24.89 sens. A 22.11 sen earning just for the final quarter is rather a high target set, don’t you agree?
Anyway, over the past month, 3 fund managers namely, Aberdeen, Mitsubishi and Credit Sussie have been trying to outbuy each other pushing the price skyhigh. Is there something they knew that we didn’t? Or are they crazy. Is the kitchen too hot and shall I get a hell out of this place. Sell when Mr Market makes a monkey out of himself?
Hah. A hard decision to make. Like a sage once said, “This too will pass”. By then we shall know with our hind mirror that we have already missed the action we should take. As for now, what action or rather inaction shall be the best course for us? Let’s wait and see.
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