Is there any hope for Nextnation? What about MNRB?

Like those who have bought Nextnation around the 60c level, I am much aggrieved by the dismal quarterly results just announced. My worst fear was confirmed when the profit figures turned red. From a profit of 4.463m in the previous corresponding period, it now shows a loss of 251,000. Its revenue at 21.533m as against 17.782m has, however, shown an improvement. As to why the profit has gone into the red while revenue has increased, only the management has the explanation. I hope this is not in anyway another accounting irregularity.

Earnings per share for the year ended 30.4.2007 is 6.4c as against 6.9c the previous year. This is before the private placement of 60c per share cum the bonus issue of 2 for 1.

Chart-wise, the stock is traded to a high of 35c and a low of 26c after the bonus issue, where it appears to be well supported. I have no idea what’s in store going forward. There were some SMS scams and some bad publicity going on about the company. Action speaks louder than words. Perhaps it’s best to follow your chart. As for me, I am holding on to my stake and hoping for happier days. I am not a trader.

What about MNRB?

MNRB is a reinsurance company. Its business activity is the underwriting of all classes of general reinsurance business.

As at March 31, 2007, MNRB has a paid-up capital of 211,866,000 shares of RM1 each. Its top four major shareholders are: Amanah Raya Nominee 48.18%; Pemodalan National Bhd 11.43%; EPF 5.83% and Amanah Raya Nominee 3.29%. Its EPS at 61.4c is commendable.

An interim dividend of 20 sen per share has been paid. It has proposed a final dividend of 26c per share. At it last traded price of 5.35, the dividend yield is 8.598.

MNRB has 1.6 billion under investment. This stake is surely worth very much more in view of our bullish market.

Linde AG has offered to buy MNRB’s shares of 4,488,000 in MOX at RM15 per share. The offered price is now raised to RP17 per share. These shares were bought in 1981 for RM914, 463. At RM17 per share, this will give a capital gain of 75,381,537.

MNRB shall be going to Dubai in the near future. Its prospective earrings and dividend payments look likely to be enchanced in future years.

The above comments should not be construed as a recommendation to buy or sell. You buy or sell at your own risk absolutely.