Excel – http://1drv.ms/1qtGPyA
– Market Timing:
– FY13 (EPS: 0.325): Buy below 7.89, sell above 9.85
– R4Q (EPS: 0.323): Buy below 7.84, sell above 9.78
– FY14 (EPS: 0.36): Buy below 8.74, sell above 10.90
– FY15 (EPS: 0.393): Buy below 9.54, sell above 11.90
– BURSA is still undervalued.
– In my opinion, in FY14, the following risks will outweigh the growth drivers
– Withdrawal of foreign investors in very large scale.
– US QE taper will cause higher volatility in the market. This may cause investors stay out of (or monitor) the equity market.
– Despite risks of higher volatility due to QE taper, The 1Q14 earnings results were, in all, a good start to the year for Bursa. The increased interest by retail investors, in particular, is a positive sign. Local institutions remain a steady presence in the market, buffering stocks from the worst of the effects of selling by foreign investors.
– I remain sanguine on the company’s outlook over the longer term, as a proxy for the country’s growth. Its business model is also fairly resilient. As mentioned above, recurring and other incomes, including interest income, is sufficient to cover some 91% of total operating expenses.
– I will continue to hold BURSA, and may accumulate BURSA in the near term. Let see how it goes.
Latest Financial – Q2 2014 Financial Report (17 Jul 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1686933
At the time of writing, I owned shares of BURSA.