Farm Best

SJ Securities rates Farm’s Best a ‘buy’

RESEARCH house SJ Securities Sdn Bhd has recommended that investors buy shares of poultry firm Farm’s Best Bhd on an expected rise in profits and dividends.

Farm’s Best has benefited from the avian flu scare because Malaysia has been spared the virus, which has struck other countries in the region.

That's the opening line from this Business Times write-up on Farm Best, a stock which is simply ze best of them best stocks in the world. (3 months ago, this stock was at a low of 90 sen. Now it is above 3.50! Is this terror or what?)

Aiseh! In case you were on a blue moon holiday and have not been following the local share market (and Citeh whacked MU!!), this stock has been moving up bom-bom sound!

Well, is the stock going up because of Farm Best earnings or is it because of ze Chiak theory?

Err... i dunno lah... ok?

Me just a mumbler and a bumbler mah! :D

But.. let's just take a look at what SJ Securities is saying here:

“Including the potential discount of RM8 million and increase in sales due to the major compliance problem (faced by Farm’s Best’s competitors), the prospective earnings of Farm’s Best are expected to be stronger in fiscal year 2006 estimated at RM48 million,” SJ Securities said.

Based on its enlarged paid-up capital of RM119.1 million, Farm’s Best is expected to post earnings per share of 40.3 sen for fiscal year 2006.

Hmmm..... mmmm....

Now question for me is SJ Securities projections reasonable or issit overly optmistic?

Quarterly rpt on consolidated results for the financial period ended 30/9/2005

That was Farm Best last reported earnings...

So for fy 2005 earnings, Farm Best managed a net profit of 18 million for the 3 quarters of the current fiscal year. Which works out to an average of 6 million per quarter. And based on an annualised basis, Farm Best could be earning around 24 million this year.

Now.. SJ Securites is estimating/projecting or ASS-U-Ming a net earnings of .... 48 million for Farm Best next fiscal year!

Ahem...

So how?

What do you think of SJ Securites report?

Oh... Malaysia spared from AVIAN FLU virus meh?




* wei... i dunno hor... what and how Farm Best will perform in the market hor... so do not ASS-U-ME!! *