One research house in an attempt to figure out the flows of "smart" money have filtered out reported institutional buyings and found that Sapura Kencana and Astro have topped the list. (details as below)
Sapura Kencana
While there is little need to tell about Sapura Kencana's background as this company has being well covered by all brokers; Bloomberg survey has given it a consensus target price of 3.74 (24.6% upside from RM3), Their massive order book of RM12b that will last for them for the next 2-3 years leaving them with only execution delay risk. Aquisition of Seadrill, a market leader in tender-rig space will allow SapuraKencana to break their net profit margins (commonly high single digit for fabricators) to an estimated 14-15%. The enlarged balance sheet will also allow them to compete with industrial heavy weights in the international waters.
Currently they are contending for 6-7 fabrication jobs for Centralized Processing Platforms worth RM5-6b, Pan Malaysia topside maintenance & Hook-up and Commissioning (HUC) umbrella contract worth RM8-10b
Astro
Post Listing, Market has priced Astro currently at RM2.7-.8 range post listing. Despite the disappointed listing, One should not forget that Astro being the largest paid TV Operator in South East Asia with Monopoly in Malaysia is proxy to Malaysia's young and growing population. Government has targeted to raise our Gross National Income to exceed USD15,000 by 2018 (currently USD12,500). Paid TV has high barrier of entry due to its costly content and capex coupled with low coverage of High Speed Broad Band, Astro's services are still irreplaceable. Incidentally, Astro's ventured into HD Content and IP Based transmission with TIME & Maxis will further lock in customers and increase Average Revenue Per User (ARPU). Bloomberg currently has a street consensus of RM3.21 (12.6% upside from RM2.85).
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Hi all,
So much talk about foreign money flowing into the FBM KLCI but where are they going? , Just to get an idea where the "SMART Money" interest are, we filtered out some of the stocks with the most new institutional investors who recently reported their holdings.(note the filter is a guide only base on BLOOMBERG Compiled Data)
From the table below we can see that SAPURAKENCANA, ASTRO & AIRASIA has added the higest new institutional investors who previously did not hold the stock. Note also that we aso inculded the % calculation of the today's prices vs the Bloomberg Consesnsus Average Target Prices under the heading -BEst TP/Px last in %.
