PREMIUM NUTRIENT (Stock code :9458) : Breached the RM0.40 level

Premium Nutrient has breached the RM0-40 level. Since my last posting, on 9-Mar-2010 the counter has gain 4cts or about 10% against its last value of RM.37 on 9-Mar-2010 closing.It closed RM0.41 cts on Friday 26-Mar-2010. With this I expect the counter to ride higher on the back of better company earnings(as announced). I understand that some funds is collecting this counter in anticipation of good dividend pay out.

 

It should test its next resistance level of RM0.50 soon chart-wise.

 

Keep a close watch on this counter and make your decision wisely.

 

Regards

BURSAMASTER

Date: Tue, Mar 9, 2010 at 9:25 PM
Subject: Stock to Watch : PREMIUM NUTRIENT (Stock code :9458)
To: bursamaster@googlegroups.com

Premium has today 9-3-2010 registered sudden increase in volume. It close today at rm0.37. Market talk has it that there is something brewing for this counter. If it breaks rm0.40 conclusively, I expect the counter to rally higher .On 22-2-2010 the company has announced a substantial increase in its net profit after tax of rm0.111 m for F/y 2009 as against rm7.913m for f/y 2008.Monitor closely.Collect on weakness.

 

Appended below is an extract of "Why I like Premium" news from malaysia-finance.blogspot for your reading pleasure:

Tuesday, February 02, 2010

Why I Like Premium Nutrients

Premium Nutrients is one of the largest, fully integrated and dedicated lauric and non-lauric refineries in the world - a fact missed by many investors in Malaysia.

 

The principal activity of PREMIUM is that of investment holding. The principal activities of the subsidiary companies are manufacture and sale of speciality fats based on palm kernel oil, palm oil, coconut oil, rapeseed oil, soya bean oil etc., including those refined and fractionated. PREMIUM is principally involved in two broad categories of activities, such as processing of commodity products and converting processed commodity products.

The activity of processing of commodity products involved in the process of converting the oil palm fresh fruits bunches into crude palm oil and palm kernel. The processed commodity products will be further convert to special fats. The range of processed commodity products produced by PREMIUM are such as crude palm kernel oil, palm kernel pellet, refined, bleached and deodorized palm kernel oil and palm kernel fatty acid distillate.

 

PREMIUM operates a crude palm kernel oil refinery and a fractionation plant in Pasir Gudang, Johor. The oil refinery has a capacity of 150mt per day, while the fractionation plant has production capacity of 80mt per day. In addition, it also operates a neutralization plant in India. The plant has the capacity to neutralized 100mt of fatty acids per day.

For the three quarters ended September 2009, the company registered RM612m in revenue and a net profit of RM6.39m. What was curious was that they had to whack some RM11.85m from revenue as finance charges. Something is not quite right when finance charges is nearly double your net profit. Some of it was due to their secured borrowings but they also got whacked by the appreciating Indian rupee.

 

The India operations accounted for almost 1/3 of total revenue and owing to the rupee's strength, the Indian operations posted a net loss of RM1.1m on revenue of RM235m for the 9 months ended 2009. The outlook is a lot better and the company can look forward to a good contribution from India operations for 4Q2009 and 2010.

 

However, when you look at their cumulative 3 quarters, the company posted a net cash flow of RM29.8m. Granted that 2008 was a difficult year for all, it appears that the company is back on track. Management knows quite well that when you are running good net cashflow, you need to whack down your borrowings as to pay finance charges amounting to twice your net profit is ridiculous.

 

As things stand the company is on track to record a net EPS of around 2.3 sen for the whole of 2009. In case investors miss out on an important announcement, they have proposed to pay back some of their borrowings via early redemption. That is a good use of cash as finance charges saved will go straight to net profit instantly

--

--
You received this message because you are subscribed to the Google Groups "bursamaster" group.To unsubscribe, please sent a request to bursamaster@gmail.com
 
To unsubscribe from this group, send email to bursamaster+unsubscribegooglegroups.com or reply to this email with the words "REMOVE ME" as the subject.