BURSA – Fundamental Analysis (21 Jul 2014)

BURSA Analysis:-

Excel – http://1drv.ms/1qtGPyA

My View:-

– Market Timing:
  – EY%:
    – 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.

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