Merger between RHBCAP and OSK .Target price OSK RM2.00?

THEEDGE DAILY : RHBCAP and OSK merger, apply to BNM for principle approval.

Buy OSK.

PLANTATION SECTOR : GOLDEN AGRI (E5HSI)

Golden Agri share price SGD0.63. GOOD BUY.

Trading Strategic For Golden Agri:

1. Buy when share price range from SGD0.63 and below.
2. If Crude Palm Oil price rebounded and its share price bounce back to SGD0.68 or above, CASH OUT and make > 7 % return .

HAPPY TRADING.

Get Ready To Enter Market !

It's time to identify some good stock to accumulate whenever the market adjust downward. Get ready your cash and apply SIM 1-2-3 investment approach. I have identified 5 stocks with following assumptions:

1. Adjusted EPS (-10%) based on bleak economic outlook for coming months.
2. Stocks with solid earning capacity and ability to pay consistent dividend.
3. Execute the investment plan with suggested entry points (total 3 entry points).


Suggested Malaysia stock with -10% adjusted EPS :-

Stock	Industry	EPS	Adj EPS	DPS	Payout Ratio	Current Price	DY
			-10%			23-9-2011
AEONCR	Consumer	0.7086	0.638	0.32	50%	4.70	6.78%
NCB	Logistic	0.234	0.211	0.21	100%	3.70	5.69%
TDM	Plantation	0.528	0.475	0.19	40%	2.82	6.74%
KFIMA	Plantation	0.328	0.295	0.09	30%	1.57	5.64%
AFFIN	Banking	0.322	0.289	0.09	31%	2.36	3.82%

Valuation and Suggested Entry Points :-

Stock	PER	FAIR PER	FAIR VALUE	ENTRY LEVEL
				Level 1	Level 2	Level 3
AEONCR	7.37	8.00	5.10	4.15	3.83	3.51
NCB	17.57	12.00	2.53	3.37	3.16	2.95
TDM	5.93	7.00	3.33	2.61	2.38	2.14
KFIMA	5.32	7.00	2.07	1.48	1.33	1.18
AFFIN	8.15	10.00	2.89	2.17	1.88	1.59

Counters To Put Under Your Watch List:-

1. AEONCR
-Consumer based and owned by Japanese
- expected EPS of at least 70 cts and dividend of 30 cts-40 cts .
-Price = RM4.70
- Accumulate when share price below RM4.50

2. NCB
- Port operator and owned by Permodalan Nasional Berhad (government linked)
- Consistent dividend payout. 25 cts-30 cte per annum
- Net gearing.
- Accumulate when share price drop below RM 3.50