Media Prima - Another election's play counter?

Today's stock pick Media Prima (Current: 1.10)

The reason why this counter is chosen is more of an election play. Current administration has not announced the date for coming election, therefore many people are left in quandary, this include the institutional players.

I believe Avertising Expenses (adex) should pick up in the coming months soon after the election date is announced with more advertisement to feature under the list of of media companies of Media Prima. This should contribute the higher revenue which should contribute to higher net profit



With all the negativity has set in within the company, most analysts have downgraded the outlook for Media. The 12 month median target price for this counter is 1.03 with 3 buy calls, 10 sell calls and 4 calling a hold.

Who are the major shareholders?
Employees' Provident fund with 13.85%
Amanah Raya Berhad 11.09%
& not forgetting various foreign shareholders.
(I believe they are all attracted by the high dividend) Current DY is 8.11% based on previous dividends declared.




This company is in NET CASH position of RM 434 mil. Latest NTA is 1.33.





Price in Mar 2014 election: 2.17
Price in Mar 2008 election: 2.43
Price in Mar 2013 election: 3.06




Near term target: 1.20

SMG's TP 1.80 (6 months based on 200-ma)
* The decisely breakout is or bull trend is in the range of around 1.27-1.31. Will follow up with more updates when more TA signals appears.
* Holding this stock requires some patience.

* This is not a buy call, readers should do their homework as well before making any purchases.

Source: bloomberg

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