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Riverview Rubber Estates faces weak short-term technicals with strong sell signals and price near its 52-week low around RM2.85. Despite this, the company shows solid fundamentals—good profitability, no debt, and a 3.4% dividend yield. Valuation is low, which may attract buyers if sentiment improves. Overall, cautious outlook unless buying momentum returns.
Riverview Rubber Estates Berhad is trading steadily around RM 2.80–2.90. Recent earnings improved, but production dropped due to replanting. The company has no debt, strong cash reserves, and offers a 3.5% dividend yield. Short-term movement is likely stable, backed by solid financials.
Many investors like to use relative valuations to compare the “worth” of a company. Yet when it comes to fundamentals they don’t follow through by using relative fundamentals.
I illustrate this with the example of Riverview Rubber, a Bursa Malaysia plantation company. My reference company is KLK – this is partly because I have a detailed fundamental analysis and partly because I happen to know some of the senior managers there.
It is not just the numbers. Because I have a reasonably good picture of how KLK numbers came about, I can have a “qualitative picture” how Riverview under performed.
If you expect Riverview to be taken over like Boustead Plantation, you would look at the PBV. But if there is no sale, the market is likely to rate it based on its earnings.
On a PE basis, Riverview is more expensive yet on a ROE basis it is worse. This is not Buffett wonderful company at fair price. Neither is this a Graham cigar-butt.