QUOTE(SKY 1809 @ May 25 2015, 12:11 PM)
Tenaga ........Quite unlikely to be taken over......I think u are right ....PE of below 10X so far the only Blue Chip falls below 10X
Do not shoot me if I am wrong...just human comment...
Tenaga is one of cheaper bluechip out there. Mostly now PE are more than 15x and a number more than 20x as well.
QUOTE(Carls_Nemesis @ May 25 2015, 01:29 PM)
for long term, tenaga is still a good hold i guess, seems something like monopoly?
Monopoly business is not the sole consideration.
You have other factor like gov policy on utilities industry, IPPs, subsidies, tariff rate etc that could influence the company profitability.
Although with monopoly business, tariff rate is not controlled by the company.
So you have fuel cost variable with fixed tariff situation. If fuel cost goes down, positive to company, if high fuel cost then negative.
Not to forget that company does have significant debt in foreign currency denominated, exchange rate may affect the P&L of company as well.