Recently, we met KNM’s management and gather that there would be no more new M&As for the company in the immediate term. Management acknowledges that competition is getting stiffer in the low- to mid-end process equipment segment but that seen in the higher end is still healthy. Should the global economy take longer than expected to recover, new tenders for jobs in 2011 may be held back now, which may give rise to concerns for O&G supporting companies. Hence, we are maintaining a Trading Buy call on KNM on its attractive valuation as the stock is
trading at a PER of 4.2x FY10 EPS.
I have 8 lots of KNM at average price of 0.548, planning to sell at 0.55 but depend on market trend lah. Macam ini aku pun boleh kata meh.