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Saturday, February 25, 2012

Freight Management Stock Analysis Bonus issue and Free Warrants

In January 2012, Freight Management has ex for Bonus 1 for 3, and free bonus 1 for 5. You will notice Freight Management share price is lower now due to the Bonus issue and free bonus.

It has been a very long time I didn't really post on stock information. It just took too much of my time. I try to simplify it so that I can post more often.

Freight Management has just announced the quarterly result. Result are mostly within most analysts expectations.

Using Freight Management share price of RM0.92
Freight Management PE Ratio 7x to 8x (Jun 2012)
Growth for next two years is moderate.
Very minimal gearing and soon will be net cash.
Freight Management dividend yield is 4.5%

I'm using fully diluted earnings to get the PE ratio.

Based on the above, I think Freight Management stock still deserve a Hold. I understand that their performance recently is not that good, but look at the followings:

1) Giving us some reasonable dividend and PE ratio is not that high
2) Strong management team that achieved increse in profit for 7 or 8 consecutive years.
3) I'm quite confident on their 3PL business growth, which can at least cushion some drop (if any) in other business



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