Nooruladha’s Weblog

Foreign Interest in Pelikan?
May 20, 2008, 8:38 am
Filed under: Trading Activities | Tags: ,

Soon after I bought at 2.95 recently, I saw other foreign fund busy buying the counter in open market. Initially, there is one US-based investor, then it was Goldman Sachs. Today I saw trades queue a couple of 1000+ lots at 2.87, which roughly translates to 280K per trade. This is interesting development. Furthermore, buying at open market seems like other institutional investor are not keen to sell at current price.

Attractive indeed. The company is strong in Germany and German speaking countries. Its sales mostly comes from Europe.With the history of quarterly-but-diminishing-in-payout-value bonus (which is still OK to me), and increasing revenue and profit, couple with expansion mode in Asia and South America (BRIC), this is a long position for me. I will continue to monitor its quarterly result.

During the period of consolidation of Pelikan , I like that they recognized the need to cost-cutting, with plans like moving plants to Asia. They also continuously churning out new innovative products (RnD in Switzerland), with targeting pre-schoolers to build brand name recognition.

Furthermore, they are currently cheap at 52%(RM2.90) of full valuation at RM5.00++.


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