Do you know why approval has yet to be granted to Sino Grandness for the bonus issue?
Other companies such as Mencast and Del Monte had their bonus shares issued already. Their initial proposals for bonus issues were rejected by SGX as the ex-bonus share prices were below 50c, and they had to lower the numbers of bonus shares to qualify.
For Sino Grandness, the ex-bonus share price was way above 50c when the proposal was made 4 months ago.
I think can forget about the proposed bonus issue. It seems to have been lost in some bureaucratic maze. Anyway, seeing how Sino Grandness has rebounded by 6 cents so far today, I am amazed at how much sentiment plays a part in price movements. Yesterday in particular, there was panic in the air. But why? I don't understand. The bloody Fed will taper QE, sure, but how does that change the valuation and fundamental growth potential of stocks such as Sino Grandness?
WEI Bin | Wait for the Next Milestone | BUY | Upside 18%
- Sino Grandness share price dropped from an all-time high of SGD1.60 to SGD1.355 (down 15%). However we see the recent share price weakness as a buying opportunity.
- Our channel check suggests that the new products Garden Fresh launched in 2Q13 have been well received by consumers. The biggest catalyst, the potential Garden Fresh spinoff, also seems to be on track.
- At the current valuation of only 5.1x FY13 PER, we are not too concerned about any downside risk. Reiterate BUY with TP SGD1.60.
Will analysts be revising their Target Prices after this morning's announcement? Stock has zoomed up to $1.38. Only a short stride to Maybank target of $1.60. Not much more upside?
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