POSHLDG restructuring, clever idea

20061101 The Pos Holdings restructuring is a clever idea, one that could boost interest in the Bursa stocks, as people scour the gems to 'unlock value'. I don't know if my analysis is correct, but here goes. Current price is RM5.20 per share, less the capital repayment the implied price should be RM3.70. With 523 m shares in the new company and assuming earnings is maintained at RM145m, the stock will trade at a PE of 13.3 times, which is below the market PE of 17X. A wad of cash (RM1.50/share) is back in the hands of shareholders, they own a new streamlined company with focus (hopefully with earnings growth potential), and trades at discount to market PE. Great move, Khazanah and EPF.