Perisai And CIMB's Target Price Of 1.60

They keep telling the market the stock is good and the stock should be worth some 1.60.

But the stock is trading at  70.5 sen only.

Is this the big one? Is this the big 'value' stock to bet on?

Ah.. I am talking about Perisai, a stock blogged several times before

• 31 Mar 2011: Perisai: Life Is Too Damn Good!


• 31 Mar 2011: RHB Clarifies Its Statement On Perisai


• 31 Mar 2011: Perisai Asked To Explain In Details Its Purchase Of Garuda Energy


• 1 Apr 2011: Perisai's Reply To Bursa Query


• 1 Apr 2011: A Little Chat With Dali On Perisai


• 2 Apr 2011: Featured Post: Legg Mason Sold Every Single Share Of Perisai They Had Bought On 23 Mar 2011


• 3 Apr 2011: More On Perisai


• 4 Apr 2011: Why Perisai Is Rated So High By The Local Analysts?


• 5 Apr 2011: More Interesting Statement On Perisai

And here's the performance of Perisai since Mar 2011. ( Arrow indicates 31 Mar 2011 )

And this is how Perisai is doing on a one year time frame.


So they (CIMB Research) have been telling the market that Perisai is worth 1.60.

Does this price of 1.60 gets anchored into you??

Think about it.

When you look at Perisai the stock, does it becomes automatic for you that Perisai should be worth 1.60?

But... but .... butttttttttttttttt........ what about the reasoning behind the buy call?

What about how CIMB got the Target Price of 1.60?

Think about it...

On 23 June 2011, CIMB released the following report.



Target price raised to 1.60.


The numbers ...........


See the numbers???

Perisai had 10.3 million profit in fy 2010.

Perisai's earnings is then PROJECTED to grow to 46.9 Million in FY 2011, 90.4 Million in fy 2012 and 95.1 Million in fy 2013.

See the massive growth projected for Perisai?

Remember the hefty Target Price of 1.60 is based on the ability of Perisai to deliver such earnings.

Perisai reported its earnings last night. It made some 7.843 million, which represented an increase of 26% when compared against the fy 2010 numbers.

Of course it look impressive...

But.... but.... butttttttttttt...... as impressive as it is.... its current half year fy 2011 net earnings is only some 15.063 million.

Half year net earnings is only 15.063 million??!!!

And CIMB profjection for Perisai's fy 2011 is ................ 46.9 million!

Errr... how?

Isn't Perisai performing well below CIMB's expectation?

Or is CIMB's expectations of Perisai's earnings simply wild?

Well? Take your poison.

And for the record, here's Perisai most recent 4 quarters or trailing twelve months earnings.


How?

Do you think Perisai even make 95.3 million profit projected by CIMB come fy 2013???

Oh as it is... you can see the current half year EPS for Perisai is only some 2.23 sen.

Yes current half year EPS is only 2.23 sen.

And Perisai last traded at 70.5 sen.

But don't you worry, according to CIMB numbers game, they say Perisai is worth some 1.60.