And ................. OSK strikes again!
Slightly more than a year ago, on March 2010, OSK wrote a report on MMC. Their head of research introduced a brand new yardstick called Blue Sky valuation.
I kid you not!
Let me reproduce what was posted on March 2010: OSK's What If Blue Sky Valuation!Today the same writer is pulling the very same stunt!
Anyway, what do we have?Today we have What IF.
Oh, he added the BLUE SKY valuation!OMIGOD! OMIGOD!
I kid you not!I guess this is the first of the kind in the world.
Ho ho ho ho!Mr. Blue Sky!
ROFLMAO!First he states the risk in one small passage...
So if my Blue Sky comes, the fair value is rm 3.26. Else it's a plain boring price of 2.41 with an un-seductive target price of rm 2.80!
And so how did MMC fared? Well apparently it was cloudy and Mr. Blue Sky was not to be found: Comments On MMC Earnings
And the remarks on MMC's earnings was remarkable. So What Is OSK Saying Now About MMC
And that was then.
Now is 27th April 2011 and OSK head of research is now no longer talking about Mr. Blue Sky. Instead it's the CROWN JEWEL...
ps: Naturally the SOP (sum of parts) value is increased.
A good trade. With Syed Mokhtar definitely appearing to be in the good books of the government currently, we do expect that it will only be a matter of time before something comes MMC’s way. As such, we maintain our Trading Buy call on the company with our SOP fair value unchanged at RM3.62.