MBB confirm its acquisition to BII at discounted price. Any comment ?

I have been evaluating this counter but found that the fundamental and growth is not stable, at least comparing to Public Bank. But it is very attractive that previous price was above RM10 before the announcement of the acquisition. Do you think MBB will get benefit in the long run from BII in Indo which is the biggest Muslim community, where MBB may expand its Islamic Banking business there.

From my study, I think the resonable price is way below RM5 or even RM4. But this "Superstar" counter is so popular and welcomed by many people and hence the market price will never go less to my expectation. EPS is quite close to PBB at RM0.60, whereas the price is RM10 (PBB) to RM6.90 (MBB).

I am feeling bit itchy to grab a little some. However, I know this move is close to gambling when the reason of my buying is merely taking advantage of its popularity and wishing someone will buy at higher price from me.

What if I stock in t RM6.80 ?

Looking forward to learning from all sifus here.

Darkknight81, my strategy is only long term investement, if possible I will keep forever if a counter can generate handsome return or capital gain each year until the market price exeeding its value. So I think only those strong fundamental corps are worth to hold. However, I find those strong as steel corps like PBB, BAT, Dutch Lady, F & N, Nestle....are too expensive to me. I do not have enough bullet at this moment But I don't want to miss this golden opportunity when I can buy cheap stocks.

So I go lower to Maybank, Genting, IOI, YTL Corp....But I am not comfortable with MBB performance. Shall I give priority to other counter like Genting, IOI and YTL ? I need your advice on Maybank before I decide my next step.

Jtinter been staying within RM4 plus for years which I think it is not growing, also I think most smokers prefer European products and I anti smoking. Most importantly I am convinced that people are quiting smoking habit from time to time especially in developed countries and Europe. That is why most cigerate companies focusing their sales in Asia.

I agree with you that most stocks are still expensive, but do you think the price can drop further ? As many investors and fund managers out there are hunting for good and healthy counters which are very limited here, due to low supply I doubt it would drop to a bargain point.

To me I think the stock price now is 30% off from market price, which is still far from what I look for at 50%.

This post has been edited by rayloo: Oct 2 2008, 03:52 PM

Just want to share, but I find the earning growth for Maybank is only 4.4% while Public Bank is 18.7%
Long term wise Maybank is not my choice, but maybe you could consider by taking advantage of the market sentiment which resulted the price decline to RM6.60.

See PBB price still stiff as rock at RM10.

Just my humble opinion.

Maybank is the largest in Malaysia, but comparing to the world ? Or maybe Asia ? Or maybe South East Asia.....it is still little that needs protection within our territory. Don't forget the globalisation we are in now. What I see BII in Indonesia is the huge potencial Islamic Banking business. If well managed strategy who knows MBB will become.

Just my 2 cents...

This post has been edited by rayloo: Oct 5 2008, 05:14 PM

Anyone heard about the merging between CIMB and Maybank ? Heard the rumour from my friend as Maybank stuff.