QUOTE(cherroy @ Nov 16 2010, 09:03 PM)
Haha, I never came across any UT company, any investment research will say bear may be coming, or predict index is lower than currently.
Set target 1300, once reach, revise up to 1500
reach 1500, revise up to 1800... and so on.
Always future looks rosy, particularly market is bull time.
Predict a lower figure like breaking their own rice bowl.
Their predictions do incorporate worst case, possible case and best case.
IF certain foreign factors like the US are not too favorable, the impacts would be there ( worst case ).
From their past experiences, 1800 pts stands a good chance,
Good to keep an open minded and hear it out, then make a judgment.
Just my view.
Added on November 16, 2010, 9:40 pmForeign interest continues to circle P&O PDF Print E-mail
Written by Joyce Goh
Tuesday, 16 November 2010 11:28
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KUALA LUMPUR: Pacific & Orient Bhd’s (P&O) insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings Ltd dropping out of the acquisition talks for the local general insurer.
“One of the interested parties eyeing the insurance business of P&O is an insurer from the North Asian region. They are exploring the possibility of acquiring the business... The insurer is studying the company [P&O] and should they decide to go ahead with the buy, they will write to Bank Negara Malaysia for approval to start formal negotiations,” said a source familiar with the matter.
The source added that one of the reasons the talks between P&O and Prudential fell through was because both parties could not agree on the pricing.
“It is understood that the asking price for P&O’s insurance business is somewhere along the region of two times price-to-book ratio… that is using the latest local general insurer transaction — Jerneh [Insurance Bhd] — as a benchmark,” the source noted.
The book value of P&O’s insurance business stood at RM160 million in July.
When contacted on the matter, P&O’s managing director and CEO Chan Thye Seng declined to comment.
P&O was one of the top 10 losers yesterday, with its stock dropping 11% to end at 91 sen following news last Friday that Prudential had ended talks with the local insurer.
From its 52-week closing low of 50 sen last November, the stock hit its 52-week closing high of RM1.24 on Aug 12.
Apart from the latest set-back, P&O’s share price may have also come under pressure due to a potential share overhang from its recently completed private placement exercise. The company had undertaken a 10% private placement exercise of 5.25 million shares at 99 sen per share. The shares were listed on Oct 20.
Following the exercise, P&O’s share base increased to 236.34 million shares. At 91 sen, the company has a market capitalisation of RM215.07 million. Its net assets per share stood at 72 sen on June 30.
Two months ago in September, Jerneh announced that US insurer ACE would be paying RM654 million for the local insurer’s business, in the process setting a new benchmark in the valuation of local insurers. The valuation of 2.24 times price-to-book based on the Jerneh’s shareholders’ fund of RM291.29 million is the biggest general insurer deal publicly announced to date, after the recent financial crisis.
Some industry insiders believe that Jerneh’s deal sets the benchmark for the industry rather than the deal struck in June by Tan Sri Quek Leng Chan’s Hong Leong Group. Mitsui Sumitomo Insurance Co Ltd took a 30% stake in Hong Leong Assurance at 6.5 times price-to-book ratio based on a merged valuation of both the life and general insurance businesses.
Smaller general insurers have appeared on the radar screens of the bigger organisations this year as the industry continues to consolidate.
“The bigger players – mainly foreign owned ones – are looking actively at potential acquisitions. This is to help out with the consolidation of the industry as encouraged by BNM as well as to grow at the same time,” noted a senior officer at a local insurance company.
In April last year, BNM liberalised the insurance sector and announced that, to further strengthen the resilience and competitiveness of the insurance and takaful industry, insurance companies and takaful operators had been given greater flexibility to tie up with foreign partners. Accordingly, the foreign equity participation in insurance companies and takaful operators was increased to a limit of up to 70%. Interestingly, BNM added that a higher foreign-equity limit beyond 70% for insurance companies would be considered on a case-by-case basis for players who can facilitate consolidation and rationalisation of the insurance industry.
This year alone, there has been two major equity deals involving foreign insurers with listed companies that have local general insurance businesses. The two deals aside, PacificMas Bhd is currently working on the disposal of its insurance business to Canadian insurer Fairfax Asia Ltd. On Sept 3, PacificMas submitted an application to BNM for the approval to enter into a definitive shares sale agreement with Fairfax. The outcome of the approval is still pending.
the Edge
This post has been edited by SKY 1809: Nov 16 2010, 09:40 PM 
Nov 16 2010, 07:36 PM
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don't understand. You mean reducing the display size? I tried that and it makes no difference. 
, thinking to pull all out and buy back when market is stablize
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