Best World

Price run is clearly unsustainable. This sharp correction is needed and perhaps gives a chance for those who are not invested to come in.

BW is no Blumont or Liongold. It has a strong balance sheet, experienced management and a viable and cash generative business model.

If we annualise BW's 1Q eps (seasonally the weakest Q), the projected eps for FY16 should be around 11 cents. At PE of 10, price is projected at sgd1.10 (against larger peers of 14x PE average). CIMB has a target price of sgd1.12.

In my view the sharp correction today overdone.

Dealing with regulators is important and giving standard reply to repeated queries, over sharp rise in share price, will only invite more scrutiny. The management must learn to engage regulators constructively.

Regulator risk is one important factor to consider in the field of stock investing. Hope this is a lesson learnt for BW.

Q2, Q3 and Q4 earnings for the past many years are significantly higher than Q1....Easily 40% to 100%++'higher. Hence, 11c is very very conservative.

1. Apparently clients of Maybank Kim Eng were big buyers of BW stock today.

2. Apparently Ronald K and his class did short the stock yesterday.

Best World - Major Gala and Collapsed

Chik wrote: 1. Apparently clients of Maybank Kim Eng were big buyers of BW stock today.

2. Apparently Ronald K and his class did short the stock yesterday.

Best World - Major Gala and Collapsed

. Which side win?