Summary 1: FPI, HUPSENG, AXIATA

I have mentioned close to 10 stocks so far... so I guess it is time to do an update on my view of all these stocks...

1. FPI

Price when mentioned: RM0.93 (close price on 16-Nov-2010)
Latest market price: RM0.87 (close price on 3-Dec-2010)   How much I think it should worth? RM1.39 (if market agree to 9x PER)

Still attractive? Yes (in fact it has become more attractive based on market price of RM0.87)

2. HUPSENG

Price when mentioned: RM1.88 (close price on 19-Nov-2010)
Latest market price: RM1.88 (close price on 3-Dec-2010)

How much I think it should worth? RM2.02 (based on 9x PER), originally RM2.24 (based on 10x historical PER)

Why now PER use 9x only?    I have 2 reasons that come into my mind:
i) Price of material price has increased further. Sugar price has gone up further by 20 sen per kg to
RM2.10 while CPO price has increased to more than RM3500 (from around RM2800 on 1-Oct-
2010). Unless HUPSENG can transfer the cost increase to consumers, this will put pressure on its margin
in the future.
ii) Stronger RM may affect its overseas sales.

Still attractive? No more as of this moment judging by the limited upside to RM2.02 (the price I think it
should worth). Will temporary stop writing on HUPSENG, will revisit this Company if there is any new
development in the future.

3. AXIATA


Price when mentioned: RM4.49 (close price on 24-Nov-2010)
Latest market price: RM4.73 (close price on 3-Dec-2010)
How much I think it should worth? RM5.26 (I quite agree with consensus target price)

Still attractive? Yes (Proxy to growing Indonesia market, with stability in Malaysia Celcom, there has been
talks that the Company will give out maiden dividend in 2011)

To be continued...