QUOTE(andrewckj @ Oct 3 2011, 03:25 PM)
BERNAS 6866
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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 %
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 be on an increase. 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
Weaknesses: 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
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 totally independent commercial business as mentioned above.
Sum it, very identical to TNB situation.
Don't get me wrong, I don't mean it is a good or bad target, just posted some view that may miss out.
This post has been edited by cherroy: Oct 3 2011, 03:39 PM 
Sep 29 2011, 02:03 PM
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