QUOTE(staind @ Apr 20 2013, 11:08 AM)
Yes, this is what most forumers looking for but as for me, I just enjoy reading the forumers discussions on their stock picking criteria.
and yes, I understand the situation you mentioned. saw it many times in the forum.
today gf working and alone at home. later see see 7162 got what to offers.
Well, stock like this one may be able to generate very good and steady future cash flow :-
Stock : MYEG Price Target : 1.34 | Price Call : BUY
Last Price : 0.90 | Upside/Downside : +0.44 (48.89%)
Target RM1.34 (Long Term : Out Perform)
Our recent meeting with management indicates positive progress in its new foreign workers' working permit renewal service. MyEG recently secured its first major contract from a plantation GLC. Furthermore, the VVTS service is gaining popularity with motorcycle dealers. Our EPS forecasts are unchanged and our target price maintained, pegged at 16x CY14 P/E, a 20% premium over our target market P/E. The premium is backed by its above-market 3-year EPS CAGR. Higher-than-expected revenue growth from new services should catalyse the stock. MyEG remains our top pick in the technology and small-cap sectors. The stock continues to be an Outperform.
Our EPS forecasts are unchanged and our target price maintained, pegged at 16x CY14 P/E, a 20% premium over our target market P/E. The premium is backed by its above-market 3-year EPS CAGR. Higher-than-expected revenue growth from new services should catalyse the stock. MyEG remains our top pick in the technology and small-cap sectors. The stock continues to be an Outperform.
Update on FWWPR service
The take-up rate for the new foreign workers' working permit renewal (FWWPR) service is gaining traction, particularly with the small and medium enterprises (SME). However, response from the bigger companies has been slow. This was expected.
As such, it came as a positive surprise when the company indicated that it recently secured a major contract from a plantation GLC to handle working permit renewals for 20,000 of its foreign workers. However, management did not mention the name of this GLC. There are currently around 3.5m-4.0m foreign workers in the country. The potential market size for this business is around RM175-200m annually.
VVTS service popular with motorcycle dealers
The online vehicle voluntary transfer system (VVTS) is gaining popularity with used car dealers as well as motorcycle dealers. Interestingly, the VVTS motorcycle market is growing faster than that for the car market as most motorcycles transfers are done by the dealers and not by the banks. Among the commercial banks, Maybank's branches have already started to use MyEG's VVTS service nationwide and we expect the other commercial banks to follow suit over the next few months.
Promotion with Digi
In Mar, MyEG and Digi launched a promotion where Digi's subscribers get DiGi talk time rebates if they renew their car road tax and insurance with MyEG. However, it would take a few months to gauge Digi's customer response to this promotion.
This post has been edited by SKY 1809: Apr 20 2013, 11:37 AM