Mencast Holdings

[secretinvestors]

Hi secretinvestor,

I bought Mencast over a year ago though much of the share price appreciation was experienced in the last few months (and last few days). I don't have an intrinsic value for Mencast. There are plenty of growth opportunities for Mencast after having made two acquisitions and with the penjuru facility becoming operational at the end of the year. I cannot quantify this growth potential. Those acquisitions could turn out to be a major flop as well ! I will wait for their 1H 2011 result due in a few weeks time to see how their core business is faring. Mencast is trading at a historic PER of 11.8, P/B of 2.5 and dividend yield of 1.9%.

Do you have a TP for Mencast ? I would value your inputs in this matter. I am extremely surprised by the run up in the trading price. It could very well dissipate in the next few days.

(Vested)

I bought mencast in Feb '11 at $0.40. According to my forecasts, mencast is currently overvalued. However, I note that the intrinsic value may continue to raise due to its massive growth. The recent surge may be due to traders' emotional anxiety and it might be a good time to take advantage of this. To play safe and preserve some capital in view of the uncertainty ahead (mencast expansion and economic factors), I may consider selling a portion of my stake in mencast (probably around 40%) and see how it goes.

What do you think? Musicwhiz, it'll be great if i can hear your opinion as well! Thanks!