This is the latest report from Credit Suisse where it valuates Malaysian banks after the implementation of Malaysian Financial Reporting Standards 9 (MFRS 9).
The underperform rating on Malaysia had already been taken off and now its a neutral recommendation for Malaysia.
Well that’s common case for most investment banks to be a step behind the action… The best is to digest the data and given and take contrary thoughts on the recommendation by these research houses.
That will save you a lot on chasing the market!
This report touches on how Ansell which Karex contracts from is mulling the sale of its condom unit. The ambition of Karex to build its own brand name might be propelled forward with the acquisition of Ansell’s ‘Lifestyles’ brand where it holds 14% of global market share.
But the problem is the price tag where the valuations stands somewhere around US$ 1 billion which far exceeds the market cap of Karex. Since that’s the case the acquisition might not be possible after all which leads to another problem.
Depending on who acquires the rights to ‘Lifestyles’, the operations might change and that would directly affect Karex’s operations.
See the link below for the report.
We really love the write up by Michael Mauboussin where his papers relates a lot of very strong fundamental reasoning in investments. The combination of investment logic and behavioral finance at times could help an investor achieve great heights.
Like how Warren Buffett does it, most of the ideas are based on logic where one action leads to another making a company’s behavior seems clear to an investor whether it is growing or it had already entered into a value trap.
This is the latest article by Mr Mauboussin…
For a list of Mauboussin articles, you visit ValueWalk‘s Mauboussin library.