Wednesday, November 11, 2009

Affin Bank..the laggard Banking Counter

Recap on comment dated: Friday, September 11, 2009
Topic: Stock Watch: Affin Bank .Why?

1. Strong shareholders- LTAT, Boustead and Bank of East Asia (HK)
2. Public spread - major shareholders hold most of the shares and easy to "push" when any annoucement is made.
3. PE - low PE (8X based on RM1.93), industry PE is 14X for 1st tier bank. IF, given PE of 10X, price may move to RM2.40. PE 12X, target price RM2.88

Any Risk?
Strong shareholder back-up. Don't worry.

If you are looking at 14-20% return within 3 months...Good TRY



Recap on comment dated : Tuesday, October 13, 2009 AFFIN BANK...
Don't forget this counter. Potential move to RM2.40 if break

1 level: RM2.10
2 level: RM2.25

PE for FY2010 = less than 10x...suitable for defensive investors with target return of 10% within 3 months.

Current share performance
The share price moving up slowly and good support at RM2.10 level. The next target will be RM2.25--RM2.50 --R2.80.

Bank of East Asia continue to increase its stake in Affin Bank through open market.



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