Maxis share price ended RM5.42 in 1st day trading

Thursday 19th Nov 2009, the 1st day Maxis listed again on Bursa, as what many people expected, the hot stock had a so high trading volume, as much as 3057843, and thus push the share price up to RM5.42, an increase of 8.4%. And being the top of the list of Bursa in both trading volume and gainers.

As a finance student, I wonder how the buyer of the stock value such a expensive stock, as Maxis share had a PE as high as 17 times, and today ending share price again push it near to 18 times, is it really worth that much? If there is professionals between them, what is the intrinsic value of the company that make them invest (in fact mostly is trading only) in this stock? Well, is it the reason where there is a phenomena where peoples behavior of tend to following popular stock?

I also wonder how many buyers intend to buy and hold it for a long period, with a current dividend yield of 0.04, I personally did not think that will worth enough to hold it that risky long period to cover back the cost. Thus, It is expected a vast of speculative trading will occur on this stock to gain short term capital gain only, and thus in future short term, the price will be quite volatile, barring that Maxis able to generate a enormous profit and reduce the PE and increase the dividend yield.

I am still working on reading the company prospectus to determine the future growth potential, maybe it is a joke for many people for still researching on the prospectus today as it had published long time ago. Well, despite a finance student, it is shameful to say that now I only realized that I learn very little on those practical knowledge, hence, I created a blog to train myself toward this, and try to learn as much from other experienced guru by reading their blog post, hopefully I can became like one of them soon~huh~