I like to read The Edge. However, I might miss some issue because of sold out in my area or some other reason. However, I never miss it year end issue before. It provide a review for whole year in 2005 and for planning next year.
In year 2005's year end issue. I guess the most mentioned name and company on the weekly is DiGi and it CEO Morten Lundal.
First, under Best Analyst of the Year. One of the analyst the make the best call is Macquarie Research analyst Premanand Jearajasingam's buy recommendation and price target on DiGi.Com Bhd.
Premanand Jearajasingam had forecast a RM7 fair value for DiGi as early as March 30, 2005. Three week after DiGi fired the first salvo i the postpaid war on March 7. At that time, DiGi was trading at RM5.45.
Premanand had pegged DiGi's fair value at RM8.20 as early as Aug 4 while most conservative analyst only agreed DiGi shares are worth more than RM7 after DiGi announced it third quarter result and capital repayment plan on Oct 26.
Since Oct 28,2005, his price target for DiGi.com stood at RM9.20. Will he be proven right again?
Second, under 10 Companies to watch in 2006. DiGi.Com Bhd was one of the listed company that have a profit and turnover of growth for the last three quaters. Other than Macquarie Research analyst Premanand Jearajasing. Similarly bulish is Morgan Stanley analyst Navim Killa with a RM9.10 target and UBS analyst Syed Razif Al-Idid's RM8.80.
Shareholders could be looking at a dividend of around 35 sen a shares next year. This translates to 4.4% potential yield at current price level or 4% as long as its shares price does not exceed RM8.77. write The Edge's Cindy Yeap.
Then there is the proposed 70 sen per share capital repayment which shareholder will meet on Jan 24, 2005 to pass the proposal.
Third, DiGi.com CEO Morten Lundal was name one of the Newsmaker 2005. Lundal's 17 months in office have delivered earning that beat analyst's expectation for at least two quarters in 2005. His announcement in October that DiGi will pay it maiden dividen folowing a 70 sen a share capital repayment has sent share price up 31% to RM8.10 since Oct 26,2005.
The largest issue to watch next year is the decision on the third generation (3G) spectrum award in February 2006. DiGi is seen as the frontrunner for a 3G spectrum.
DiGi's successes under Lundai's stewardship include firing the first salvo in the postpaid price war that force domestic long-siatance phone rates down.
Fourth, under 20 CEO we admire. DiGi.com Berhad CEO Morten Lundal again name as one of the 20 CEO we admire in 2005 by The Edge. Morten Lundal was former consultant with Gemini Consulting and AT Kearney before joining Norwegian telecommunications company Telenor ASA.
Telenor ASA, a company control by Norway government was reputable of it high tech open concept headquarter. DiGi's new corporate headquarters in Shah Alam - a smaller copy of Telenor's award winning open concept - is in its final stage of completion
TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market
3 comments:
keep in mind that the smart investor doesn't listen to analyst recommendations
the smart investor just uses the facts ahd information collected by analysts and published on their analysts...
take it from me.. i used to work at two research houses.
Hi boss stewie,
What you state is debatable.
Please be informed that my blog is not a license Investment Advisor which prohibite me to give advise on my blog.
What I can do is like other financial media, quote what had said and commented by an analyst.
Right and wrong. I bet 3G will further boost Digi's share price further up. However, I heard that there are many cases overseas that the existing telcos failed to secure the 3G spectrum because they failed to comply to local government's requirement. So, I won't be surprise that Digi might not get it at all.
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