Worthy Stocks by dollardollarbill

The most undervalued Malaysian bank could be unlocking more than RM1bil from its crown jewel     Affin Bank (5185) is looking to list its 63%-owned Affin Hwang Asset Management Bhd (AHAM) , according to recent news . Affin Bank is said to be currently working with advisers on the listing.   This unlocking of value could be a near-term catalyst for Affin Bank (the most undervalued Malaysian bank, trading at about 0.3x P/BV ). The value to be unlocked will be the current value of AHAM minus the price that Affin Bank paid for it.  Affin Bank purchased AHAM for RM282mil in 2014   What could be the current value of AHAM?   Asset management companies are generally valued at market cap to asset under management (AUM), better known as price-to-AUM, P/AUM .   So, one way to gauge the value of AHAM is to look at its AUM, which is currently about RM67bil (as at 31 Oct 2020).   Let’s gauge…   If AHAM is valued at 4...

This is an update to my first Focus Point post (click here to view).   There is a saying that good things come in pairs. For me, it was two positive events that happened this evening.   Bonus issue – creating bullish market sentiment   The first was the announcement of the proposed 1 for 2 bonus issue. This was a pleasant surprise as it was just in July last year that a 1 for 3 bonus issue was proposed (and completed in Sep 2019).   As most would know, bonus issues usually create positive investor sentiment towards the stock.   Macarons – another hot selling goody   The second positive event for me today was the discovery that FamilyMart’s newly launched Macarons are made by Focus Point’s 100%-owned Multiple Reward Sdn Bhd and that the macarons sells out very quickly everyday .   I went to three FamilyMarts today morning to get my hands on the macarons. But to my surprise they were all sold out at three outlets.   ...