Wednesday, January 9, 2008

BURSA-CF (RM0.47) BUY

Bursa Malaysia - Super-monopolistic play
Key drivers:
1- Potential 10% stake sale to CME/foreigners at RM20/share;
2- Huge trading volume/value;
3- US Dollar palm oil futures contract;
4- Generous cash pay-out (i.e special cash,dividend yield >5%p.a)
Risks:
1- Slower local economic activities in 2008;
2- Global market sell-down +recession
Recommendation:
Trading BUY on Bursa-CF, best entry price:RM0.40-0.44, sell at RM0.51 or higher. (premium:<6%, expiry date: 4 Apr'08, ex-price:RM10.30, ex-ratio:1m for 10w), assuming Bursa to reach RM20 before April'08, Bursa-CF should be fairly valued at RM0.97.

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