really?can u dig it out?pls~~

BERNAS 6866

Product studies
Beras, we the Malaysians consumed it daily. Bad time, good time, beras is makanan ruji kami that unite us the Malaysian, which is true 1Malaysia by silent.

Think of local delicacy, which one is your favourite?

Malay Cuisine : Nasi lemak, nasi dagang, nasi campur, Nasi briyani, Curry rendang (goes with rice? no rice how to eat with curry?)

Chinese Cuisine : Bak Kut Teh, Curry Fish Head, Fried Rice, Kim Gary Cheeeseeee Farn, Teochew porridge, Your Chicken rice, Your daily Zap Farn( Mixed Rice), and the list goes on and on..

Indian Cuisine: Banana Leaf Rice, Nasi Kandar Penang,

Not only limited to rice, Bee hoon is made from rice too. We too fancy bee hoon (rice vermicelli) rite?

That is the fundamental of the product that BERNAS is in, the perfect companion for almost all our favourite food.

Now the financial analysis briefly;

Current PE ratio, only at single digit = 7.69

Dividend yield at current price = 7.1 % at least.. (taking every year, BERNAS declared at least 20 cents divvy) better than some REITS out there.

SWOT analysis:
Strength: monopoly rice market in Malaysia , more than 60 %. No foreign operation..
Weakness: Rice is a controlled item, so the product price can't be change accordingly. Cornered stock. No foreign fund exposure, so the upside is limited, but to some this is the strength. TWS corp holds 72 % + local fund made up to near 90 %
Opportunity: Though rice is a controlled item, population will keep on increasing. Malaysia rice consumption is not enough, we are still importing from Thailand. BERNAS for sure will continue to expand. Also with greater population, greater rice consumption = profit figure increase for BERNAS
Threat: Malaysians will forgo rice as the main source of carbo. How likely this to happen??

I give u a full reason on why you should buy BERNAS, a through explanation..haha. Lastly, a quote I read in an investment book "Support the stock that have your daily support". BERNAS fits in so well for my investment purposes and risk appetite.

By,
kenjunz

BERNAS is yummy, think of BERAS, BERNAS will pops up in my mind. Cheers  

Hmm.. Your threat.. banyak threatening.. Haha.

I vote 100% Malaysian will not forgo rice as main source of carbo

really?can u dig it out?pls~~

If Thailand's rice price goes up, Bernas have to absorb at the price higher, cost will goes up. Since it is a controlled item, profit is much depending on government approval for price hike.

Hmm.. Your threat.. banyak threatening.. Haha.

I vote 100% Malaysian will not forgo rice as main source of carbo

BERNAS 6866

Product studies

BERNAS is yummy, think of BERAS, BERNAS will pops up in my mind. Cheers  

i tink the osk and rhbcap saga is all over the news la...they applied to Bank negara fo the merger talk...now negotiating..

nego  doesn't always mean sure kao tin..

Haha, Boney as usual, so humorous..lols! It's actually true, i can survive without noodles but not rice.

So i vote 100 % too, Malaysian will not forgo rice as main source of carbo..lols

...

It fulfill the criteria of daily support or consumer based, defensive nature and don't need to fight for customer, but there is issue on pricing power, social and political issue which the later part mean it may not a pure and independent commercial business as mentioned above.

Don't get me wrong, I don't mean it is a good or bad target, just posted some view that may miss out. 

As much as I agree on above statement, TNB almost is identical with it, except the capital expenditure for TNB.
Monopoly, once you switch on your light, your computer, you think of TNB. 

One disadvantage I need to highlight, rice is the key item and its pricing is sensitive across, be it social or political wise, same with electricity.
So there is social and political pressure on maintain the rice pricing, as same with electricity, aka pricing ability is not fully in control.

Unlike Petronas, oil products, crude oil produced is moved in tandem with world market price.

It fulfill the criteria of daily support or consumer based, defensive nature and don't need to fight for customer, but there is issue on pricing power, social and political issue which the later part mean it may not a pure and independent commercial business as mentioned above.

Don't get me wrong, I don't mean it is a good or bad target, just posted some view that may miss out. 

Rumours - Cimb taking over MBF?
real?????

Yes cherroy, I agreed on this part as well, which I highlighted it on the weakness side on my SWOT analysis part. Rice is a controlled item, so the product price on the upside is very limited and the price control is not on the absolute side of BERNAS..

So after given a simple thorough analysis, it is up to investors/ speculators to decide on whether BERNAS suits their risk appetite. For me, it match my appetite and obviously BERNAS constitute some percentage in my total stock portfolio.

There will still be risk attacked, this is stock investment no doubt, so bros and sis out there, please don't get my analysis wrong by thinking that BERNAS is a sure win stock. The analysis merely serve as a guide and you should consider on whether do BERNAS match your risk or investment appetite.

No worries cherroy, we are all here to share and you free to comment constructively and I appreciate all the constructive feedback