MSM: How high can it go?

MSM up another 46 sen to RM5.60. From the IPO listing price of RM3.38, it has increased 66% in less than 1 month time.

How high can it go?
1. Let's look at risk free rate, 10-year Malaysia Government Bond is offering 3.93% yield.
2. Based on consensus figure, MSM dividend for FY12 is expected to be 22 sen.
3. Based on the logic that MSM dividend yield cannot go below risk free yield, the maximum value for MSM should be RM5.60.

Time to really look at MSM, whether the optimism surrounding it has gone beyond logic....