Bursa set reference price for TM and TMI shares
TM International Bhd’s (TMI) reference price has been set at RM7.85 and Telekom Malaysia’s (TM) at RM3.05 following the demerger exercise. TM shares would be trading at the new reference price today while TMI would make its debut on the main board on Monday.
What does it’s mean?
A stock that tends to trade at a lower price relative to it’s fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.