CBIP gets RM38.35m contract from Ministry Of Health

CBIP got contract to supply 100 units ambulance 4x2 (Type “A” and “B”) inclusive medical equipment to Ministry of Health. The contract sum is RM38.35m.

Short comment:
1. It was just last Thursday the Company announced Bonus Issue. With this news flow, we should see another round of movement in CBIP share price.
2. Bear in mind that the ex-date 27-Apr-11 (this Wednesday) for distribution of interim share dividend of 1 treasury share for every 20 existing ordinary shares held.
3. The exact ex-date of the bonus issue has not been announced yet.
In short, plenty of opportunity for trading...

CBIP announced 1 to 1 bonus issue

Historically, stocks which have just announced bonus issue will shoot up in the next trading day. Let's see how high CBIP can go.

As a reference, average analyst Target Price for CBIP = RM4.78 (Lowest = RM4.65, Highest = RM5.00).

3 Signs Of Bullish Sentiment After Chinese New Year

Sign 1: The poll at The Edge Malaysia website shows positive result among readers... See the pics below, I have voted at around 1215pm 3-Feb-2011...

Sign 2: Many of my Chinese friends and relatives received Chinese New Year SMS greetings from Prime Minister...Well this is quite straightforward as another strong sign of possible general elections this year, which will then benefit stock market...

Sign 3: Strong market performance despite only half day trading on Chinese New Year Eve. FBM KLCI surged 11.88 points (Well, 1188 is a good number, isn't it?) with 674 gainers and 137 losers. Volume was strong too with 1.53 billion shares valued at RM1.70 billion changed hand.

What's the stock I am looking at? CBIP, FPI and SPSETIA. Will try to write on these companies soon...

Major Share Buy Back on 31-Jan-2011

1. CBIP - 275,300 shares bought back at average price of RM4.08 in a deal worth about RM1.12m

2. REDTONE - 150,000 shares bought back at average price of 19.2 sen in a deal worth about RM28.8k

Interestingly, CBIP announced that it gets RM40.3m contract to build a mill in Ivory Coast at the same day.

Outlook for 2011

It's the end of 2010 and most investors are discussing about 2011 outlook. Here's some of the report or news that I find interesting to share with you all:

i) Barrons bullish outlook on US market
   "Collectively, the 10 strategists and investment managers surveyed by Barron's see the S&P 500 finishing
    next year near 1373, roughly 10% higher than Friday's close at 1244"
    Full report here: Barrons 2011 Report
ii) 2011 Market Outlook: Rebound to Expansion
    "We believe the theme of transition from rebound to expansion is appropriate for the 2011 outlook 
     because we expect a transition year for both the economy and the financial markets.
     PNC projects that the U.S. economy as measured by real GDP will eclipse the previous peak set in
     2007 by the end of the first quarter of 2011 and move into expansion mode."

My view on Malaysia stock market:
i) Bullish on CPO counters due to expected higher oil price. Counters to watch: Companies which have prepared well for this commodity cycle include CBIP. The company originally build palm oil mills but have planted palm oil several years ago. Expect to see the earnings from plantation to be bigger in the coming quarterly result. Will write on CBIP fully later.
ii) Bullish on Sarawak counters due to expected election in 2011. Counters to watch are construction players in Sarawaj e.g. HSL and NAIM. Catalysts will be the possible new construction contract announcement. Will write on NAIM later.
iii) Neutral on F&B counters due to higher CPO, sugar price and pressure from higher labour cost. Counters that I like within F&B sector: CIHLDG and MAMEE. However, the key catalysts will be their ability to transfer the inflation cost to consumer. Will write on MAMEE later.