Monday, December 31, 2007
Monthly Portfolio 31-December-2007
Goodbye 2007 and Welcome 2008 !!! My portfolio for the year 2007 !! No movement for my current holding. Have adjusted GUINESS purchase price after receiving 32 sen final dividend. Definitely will continue hunting for more value stock in this new year of 2008. I welcome all reader suggestions and provide me good dividend stock, particularly those stock that giving increasing dividend each year. Till then please find below and happy trading for year 2008 and make abundantly. May your resolutions come true......
Sunday, December 30, 2007
Thursday, December 27, 2007
Net Dividend Collected
Take a look of the net dividend that i collected thus far for my portfolio :-
Friday, December 21, 2007
Remisier Versus Online Trading
Wednesday December 19, 2007
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Friday, December 7, 2007
How Much is this affecting you with minimum $40 brokerage Fee Next Year?
Is imposing minimum brokerage of $40 create impact to KLSE or otherwise ?
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Thursday, November 29, 2007
Monthly Portfolio 29-November-2007
Added GENTING, MNRB & more RESORT to my portfolio this month. As usual, nothing special to my portfolio except waiting for dividend patiently. Have adjusted YILAI purchase price after receiving 5sen of dividend. One thing to take note is that the trading volume is declining, does this indicate that the hot money is pulling out slowly ? If so how much will this affect KLCI this time round ? Will the "Synergy Drive" listing spur some excitement to KLSE ? I guess only time will tell.....lets wait see...tomorrow....
Tuesday, November 20, 2007
Dividend Yielding Stocks - PBBANK, PANAMY, MNRB, GUINNESS, BJTOTO & APOLLO
Listed below are some of the high dividend yielding stocks. These stocks have been consistantly paying good dividend without failed. Some DY is as high as 10% based on current price, one can just investing in this type of counter to profit the dividend and still much better off than putting the money in FD for a mere 3.7%.
PBBANK - Dividend Yielding 6%
PANAMY - Dividend Yielding 10%
MNRB - Dividend Yielding 9%
GUINESS - Dividend Yielding 8%
BJTOTO - Dividend Yielding 7%
APOLLO - DIvidend Yielding 8%
Sunday, November 11, 2007
EKSONS & LHH
Alicafe, below is for you, hope it help. Obviously you can see LHH is on the uptrend and EKSONS is on the downtrend. There is saying "buy on support and sell at resistance" but is all depend whether the trend is up swing or down swing. Take your judge carefully. Determine the S&R is important as it will help you to execute your trades more accurately.
Monday, October 29, 2007
Monthly Portfolio 29-October-2007
This month i have added 2 more stocks in my portfolio. The first one is PANAMY, i have been tempting to buy this stock since many months back and could not get the right time and right price. Eventually decided to settle with RM10.70 and reason buying this is simple, that is none other than "dividend" that i'm looking for. This company has been paying solid dividend for many years back till now and i like this so much as it suit my type. The second stock that i have been ventured in is IOICORP. I believe that there is still room for grow as the commodity prices for oil palm is kept pressing new record high like oil. Thus, plantation stocks in here to play.
Other than the above, i have adjusted the purchase price for BJTOTO, CARLSBG, MAYBULK and RESORTS after receiving dividend of 10 sen, 5 sen, 8 sen and 2.88 sen respectively. Please find below updated of my portfolio. Till then happy trading.
Wednesday, October 10, 2007
5077-MAYBULK MALAYSIAN BULK CARRIERS BHD
MALAYSIAN BULK CARRIERS BERHAD ("MBC or the Company")
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Monday, October 1, 2007
Public Bank set to sustain record
It plans to go big in China
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
Saturday, September 29, 2007
Monthly Portfolio 29-September-2007
There isn't any movement on my portfolio, still holding my same old stocks. Has been quite lazy lately to post anything here. My focus has been diverted to Forex lately and still generating profit slowly & steadily. Below is my portfolio for the month of September, till then happy trading. Sayonara...
Friday, September 7, 2007
Dry-bulk shipping rates reach new highs
By C. S. TAN
PETALING JAYA: The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday.
With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year.
The average in the current quarter is 93% higher than the average 3,593 in the corresponding quarter last year.
A Bloomberg report quoted China Cosco Holdings Co chairman Wei Jiafu as saying yesterday that shipping rates for dry-bulk cargo, such as iron ore and coal, would continue to rise as China's economy would see robust growth for the next 20 years.
In another report, Bloomberg quoted China Ocean Shipping (Group) Co deputy director of research and development Yang Shicheng as saying that China would import 390 million tonnes of iron ore this year, 11% more than last year.
That would hold freight rates at record highs, he said, adding that iron ore would remain the key driver of freight rates, having replaced grain since the start of the century.
AmResearch said in an update report yesterday that dry-bulk charter rates set all-time highs again last week, with average Capesize spot charter rates ending the week at close to US$125,000 a day, while the average Panamax spot charter rates finished at over US$62,000 a day.
Capesize refers to ships that are too large to pass through the Suez Canal and Panama Canal, and which have to go around the Cape of Good Hope or Cape Horn. Panamax refers to ships that are too big to go through Panama Canal.
AmResearch cited a media report that an aluminium smelter would be put up in Sarawak by a joint venture between Rio Tinto and Cahya Mata Sarawak Bhd.
“We view this news as positive to our bulk universe, both for the long haul (Maybulk) and feeder services (Hubline).
“Hubline will have first mover advantage due to its stronghold in resource-rich Sarawak, and with the expected delivery of two handysize vessels by 2009, Hubline will be running a total of 26 bulk vessels,” AmResearch said.
Handysize is the most widely used type of dry-bulk vessel and are between 15,000 and 50,000 tonnes deadweight in size.
PETALING JAYA: The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday.
With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year.
The average in the current quarter is 93% higher than the average 3,593 in the corresponding quarter last year.
A Bloomberg report quoted China Cosco Holdings Co chairman Wei Jiafu as saying yesterday that shipping rates for dry-bulk cargo, such as iron ore and coal, would continue to rise as China's economy would see robust growth for the next 20 years.
In another report, Bloomberg quoted China Ocean Shipping (Group) Co deputy director of research and development Yang Shicheng as saying that China would import 390 million tonnes of iron ore this year, 11% more than last year.
That would hold freight rates at record highs, he said, adding that iron ore would remain the key driver of freight rates, having replaced grain since the start of the century.
AmResearch said in an update report yesterday that dry-bulk charter rates set all-time highs again last week, with average Capesize spot charter rates ending the week at close to US$125,000 a day, while the average Panamax spot charter rates finished at over US$62,000 a day.
Capesize refers to ships that are too large to pass through the Suez Canal and Panama Canal, and which have to go around the Cape of Good Hope or Cape Horn. Panamax refers to ships that are too big to go through Panama Canal.
AmResearch cited a media report that an aluminium smelter would be put up in Sarawak by a joint venture between Rio Tinto and Cahya Mata Sarawak Bhd.
“We view this news as positive to our bulk universe, both for the long haul (Maybulk) and feeder services (Hubline).
“Hubline will have first mover advantage due to its stronghold in resource-rich Sarawak, and with the expected delivery of two handysize vessels by 2009, Hubline will be running a total of 26 bulk vessels,” AmResearch said.
Handysize is the most widely used type of dry-bulk vessel and are between 15,000 and 50,000 tonnes deadweight in size.
Thursday, August 30, 2007
Monthly Portfolio 28-August-2007
This month (August 2007), KLSE market took a tumble on concerns of US Subprime mortgage tussle. However the KLCI meltdown recover from a 17% drop to a 9% drop as at yesterday closed. Would this bumpy ride continues....? I would say it certainly depend very much on US Dow Jones, it seem like DJ creating a tank for Asian Markets. When DJ is up, Asian Market would follow and vice versa. The dust has not settled as yet.
This month i bought in JAKS for a quick hit and run at 0.90 sen, luckily was able to dispose at 0.93 sen for a small gain. It was never my policy to buy this type of stock but just can't resist the temptation to join others for a quick punt. Other than this i also received a 25% dividend on PBBANK and have adjusted the purchase price accordingly. My portfolio's profit shrunk from 66% to 60%, a 6% reduction compare to last month. Will certainly take a closer look at the market since September is a budget month, traditionally some tide would be expected especially some of the tobacco & beverage counters. Till then happy trading.
Thursday, August 16, 2007
Public Bank not exposed to US subprime mortgage market
KUALA LUMPUR: THE Public Bank group has no exposure to the US subprime mortgage market and expects this year to be another year of strong performance, said chairman Tan Sri Teh Hong Piow.
"The Public Bank group's overall operations, including its Labuan Offshore Bank and overseas operations in Hong Kong and China, Indochina and Sri Lanka have absolutely no exposure to the US subprime mortgage market segment whether directly or indirectly in its investment portfolio," he said in a statement.
The unit trust funds managed by Public Mutual also do not have any direct or indirect investment in the US subprime mortgage market.
Teh expects the group's loans growth to be sustained at the annualised rate of 17% as achieved in the first half of the year.
"The group's customer deposits continue to grow strongly. Asset quality is expected to remain strong.
"Currently, the group's net non-performing loan ratio is only 1.5% – the lowest in the banking industry in Malaysia.
"With its healthy loan to deposit ratio of 75%, the group is very liquid," he said.
"The Public Bank group's overall operations, including its Labuan Offshore Bank and overseas operations in Hong Kong and China, Indochina and Sri Lanka have absolutely no exposure to the US subprime mortgage market segment whether directly or indirectly in its investment portfolio," he said in a statement.
The unit trust funds managed by Public Mutual also do not have any direct or indirect investment in the US subprime mortgage market.
Teh expects the group's loans growth to be sustained at the annualised rate of 17% as achieved in the first half of the year.
"The group's customer deposits continue to grow strongly. Asset quality is expected to remain strong.
"Currently, the group's net non-performing loan ratio is only 1.5% – the lowest in the banking industry in Malaysia.
"With its healthy loan to deposit ratio of 75%, the group is very liquid," he said.
Saturday, July 28, 2007
Monthly Portfolio 28-July-2007
KLSE market has a sell-down yesterday following the US market plunge overnight. KLCI dropped 26.12 points & settled at 1355.28 points. More selling would be expected next week. I am staying out of the market for the time being and might pick some quality stocks if i see some light at the end of the tunnel. Meanwhile my portfolio increase slightly despite of the sell-down yesterday compare to last month. However, may foresee greater impact after next week. Being longterm, i'm not worry much on the sell-down in-fact it create opportunity for me to get some quality stocks which is relatively high now. Till then happy trading.
Saturday, July 21, 2007
Resorts World begins share-buyback
Saturday July 21, 2007
Resorts World begins share-buyback
By KATHY FONG
PETALING JAYA: Resorts World Bhd kick-started its capital management plan with the commencement of its share-buyback scheme yesterday.
This came after the group had in a surprise move sold a 14% stake in loss-making Star Cruises Ltd last Friday for RM1.16bil cash.
Resorts World announced to Bursa Malaysia it bought back nine million shares at an average price of about RM4.15 a share, costing it RM37.36mil. The stock closed at RM4.22 yesterday, up 32 sen.
This is the first time that Resorts World has bought back its own shares.
Genting Bhd’s head of strategic investments and corporate affairs Justin Leong said: “As Resorts World’s largest shareholder, we are pleased that Resorts World has finally embarked on its capital management programme.
“We see this as a positive step towards enhancing value for all shareholders.”
In the past, there was criticism that Resorts World’s capital management was not efficient enough, given its large idle cash reserves.
Resort World’s cash pile is nearly RM2bil now and is expected to balloon to RM4bil by year-end.
Resorts World begins share-buyback
By KATHY FONG
PETALING JAYA: Resorts World Bhd kick-started its capital management plan with the commencement of its share-buyback scheme yesterday.
This came after the group had in a surprise move sold a 14% stake in loss-making Star Cruises Ltd last Friday for RM1.16bil cash.
Resorts World announced to Bursa Malaysia it bought back nine million shares at an average price of about RM4.15 a share, costing it RM37.36mil. The stock closed at RM4.22 yesterday, up 32 sen.
This is the first time that Resorts World has bought back its own shares.
Genting Bhd’s head of strategic investments and corporate affairs Justin Leong said: “As Resorts World’s largest shareholder, we are pleased that Resorts World has finally embarked on its capital management programme.
“We see this as a positive step towards enhancing value for all shareholders.”
In the past, there was criticism that Resorts World’s capital management was not efficient enough, given its large idle cash reserves.
Resort World’s cash pile is nearly RM2bil now and is expected to balloon to RM4bil by year-end.
Saturday, June 30, 2007
Monthly Portfolio 30-June-2007
This month my biggest gain is from BJTOTO after the share breaching the $5 psychological barrier. BJTOTO has reported its 4th Qtr result with a decrease of 18% profit and declared 7.5sen dividend for this qtr. Would likely to hold for a while for Bjtoto and monitor how the price move before taking any action to it. I have adjusted RESORT & YILAI purchase price after receiving dividend of 3sen & 8sen respectively. Below is my latest portfolio & there isn't any movement for this month as my focus has diverted to newly discover financial investment that is "Forex" trading at the moment...hehe...yeah..got new toy to play. I'm about 12% in profit right now for this new gizmo not bad huh...!! errr....till then Happy trading....
Wednesday, June 20, 2007
Trendlines for Novice
Part 2
To find major support and resistance levels, one way is to draw trendlines on chart. It is always possible to find the direction of a particular stock is headed by connecting more than 2 points price tops and bottoms on a chart.
Below appears to be going down in price for EKSONS after connecting the tops price like so. Oscillators like MACD and RSI show down signal :-
Below appears to be going up in price for MAYBULK after connecting the price bottoms as follows. MACD seem crossing showing buy signal and RSI is above the 50% strength level. MAYBULK seems very interesting trading at this price, probably an upside is to be formed in the later stage.
Why did i say so for MAYBULK, it is because if you buy on or near the line, when/if the line breaks, you will get out very near where you got in. Not only that, you will have a clear set of reasons why to get out. That is, you will know that the trend has broken down and that the situation that caused you to enter the trade has changed. Base on current market and the trendline, i would recommend a buy for MAYBULK on current state.
Till then happy trading.
Friday, June 15, 2007
How to define Support & Resistance on Stock for New Traders - Novice
PART 1
SUPPORT - is where the buying at a price lever is strong enough to cause a reverse in a downtrend.
RESISTANCE - is where the selling at a price lever is strong enough to cause a reserve of an uptrend.
Have you ever seen a zig-zag chart before ? The price of a stock in KLSE market works in similar fashion in between the support and resistance.
SUPPORT - is where the buying at a price lever is strong enough to cause a reverse in a downtrend.
RESISTANCE - is where the selling at a price lever is strong enough to cause a reserve of an uptrend.
Saturday, June 9, 2007
Trading Stocks Is A Long Haul Thing
When you ask around among the circle of your friends how successful is their stocks trading, it can be pretty depressing. Only probably about 5% of my friends are making any money. With so many trading stocks, why is this?
1. Mentality is wrong. One would probably think that this is the area where they can get Rich Quick by trading stocks and how easy and profitable it is to trade with so many brokers giving abundant informative recommendation of stocks. Well, it is easy to actually trade, but difficult to trade well. Many people will just start trading without knowing what they are doing. A good course of study on the company and how they fare with their competitors with each other, what is the earning, is this company fundamentally strong, TA & blah blah blah is a must before you start any live trading. You must be educated in stocks to trade profitably. You can't just go on gut feeling. Stocks trading should be done for the long haul.
2. Trading for the wrong reasons. Once, i ask my friend, for what is the reason you trade stocks since you are not in the positive all this while. He told me, at least there is a thrill in my daily live and most importantly "is for the fun of it". Yes, there is a high associated with making a huge profit from one trade, then you are all in positive. However, do not treat stocks trading like a day at the race track. You should not trade for the excitement of trading. Not to mention that there is a lot of time to be spent just waiting for the correct trade to come along. Also, don't start stocks trading because you think it only requires a few minutes a day to make money. Even if you are scalping the market (making small quick trades), it takes time for those trades to develop and mature. One should sharpen their saw before start trading and with only one reason, that is "Winning".
Happy trading.
Thursday, June 7, 2007
Congratulations to our PM
Would like to take this opportunity to offer my sincere congratulations to our PM and soon-to-be first lady for their coming marriage. All the best and may God bless you.
Wednesday, June 6, 2007
Saturday, May 26, 2007
Monthly Portfolio 26-May-2007
KLCI stood at 1339.08 yesterday, many have felt that KLCI now is at tail end and hard to find a new breath after sustaining the bull for almost a year. This is mostly the perception from many each time i get their comment, will the KLCI end right here and make a south turn ?? What would you think ??
This month, there isn't any trading in my portfolio. I have adjusted the purchase price for CARLSBG and GUINESS accordingly after receiving 32sen and 13sen of dividend respectively. Other than that, I have added a 500 free units of MAYBULK shares after the "ex" of the bonus issue of 4:1. Please find my portfolio below & till then happy trading.
Thursday, May 24, 2007
Whose fault is it ??
Just want to share this, i find it funny. Interestingly, when i happen to have a lunch chat with my friend recently, he told me that he just got a small windfall while placing an online order of a penny stock. To his surprise and disbelief that when he checks the matched order, it was 10 cents below his ordered price, which means, a 40 cents stocks which was placed and it matched at 30 cents. The price jumps back to 41 cents right after that where he quickly sold it for a quick intra-day profit. I wonder is a computer glitch or human error ??? Walau er.... This kind of thing also can happened ????
Saturday, May 12, 2007
Magnum may unveil big special dividend
KUALA LUMPUR: Magnum Corp Bhd is finally set to proceed with its long-expected capital management plan as it may soon announce a bumper payment to shareholders.
A source said the company, subject to board approval at a meeting on Tuesday, could announce a special dividend of between 60 and 70 sen a share.
The board may give the go-ahead for the numbers forecast operator (NFO) to distribute its vast cash pile of more than RM700mil.
Last year, Magnum raised its dividend to 14 sen a share from 10 sen. The return of cash will benefit shareholders and none more greatly than Multi-Purpose Holdings Bhd (MPHB), which owns 51% of Magnum.
The cash from Magnum may help MPHB pare down debt but the source said MPHB also had a good story to tell.
MPHB, the source said, was set to announce a record profit for its first quarter ended March 31, thanks to Magnum's strong NFO business and a robust stockbroking business owing to the bull run on Bursa Malaysia.
MPHB announced a pre-tax profit of RM86.4mil and a net profit of RM60.5mil, or 6.3 sen a share, for its fourth quarter.
A source said the company, subject to board approval at a meeting on Tuesday, could announce a special dividend of between 60 and 70 sen a share.
The board may give the go-ahead for the numbers forecast operator (NFO) to distribute its vast cash pile of more than RM700mil.
Last year, Magnum raised its dividend to 14 sen a share from 10 sen. The return of cash will benefit shareholders and none more greatly than Multi-Purpose Holdings Bhd (MPHB), which owns 51% of Magnum.
The cash from Magnum may help MPHB pare down debt but the source said MPHB also had a good story to tell.
MPHB, the source said, was set to announce a record profit for its first quarter ended March 31, thanks to Magnum's strong NFO business and a robust stockbroking business owing to the bull run on Bursa Malaysia.
MPHB announced a pre-tax profit of RM86.4mil and a net profit of RM60.5mil, or 6.3 sen a share, for its fourth quarter.
Saturday, May 5, 2007
Which high cap stock will replace Maxis on KLCI?
Below was extracted from The Star for you reading pleasure :-
PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) is going to miss some significant members with Maxis Communications Bhd on its way out of Bursa Malaysia alongside Island & Peninsular Bhd (I&P) and Malakoff Bhd, which are also being taken private by their respective owners.
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The three companies have a combined capitalisation of close to RM50bil, representing almost 7% of the benchmark's total market capitalisation (market cap) based on yesterday's closing prices.
Maxis closed RM2.30 higher at RM15.30 while I&P and Malakoff were unchanged at RM2.33 and RM10.30 respectively.
Earlier this week, business tycoon T. Ananda Krishnan made a 20% premium offer of RM15.60 per share to take full control of Maxis.
Last week, Permodalan Nasional Bhd announced plans to take I&P private by buying the remaining shares it does not own for RM2.35 each.
Malakoff, on the other hand, will be delisted at the end of this month on completion of the sale of its assets to parent MMC Corp Bhd.
A fund manager noted that the liquidity in these counters would have to be distributed elsewhere. “It means more money will be going into other index-linked counters,” he said.
While the funds could move to new entrants to the benchmark index, there were not many blue chips that were not already part of the KLCI, the fund manager added.
Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in an e-mail reply to StarBiz that the exchange would implement “a standard process'' to replace any index-linked stocks that had been de-listed.
“The number of index constituents in the KLCI is fixed at 100. The weightage of each constituent is distributed by way of market cap, with bigger companies assuming higher weightage,” he added.
A head of research at a local brokerage said: “Ultimately it depends on how Bursa wants to replace the companies. The new entrants don't have to be of similar size to those that are being dropped.''
He said based on sectors, YTL Power Bhd could represent the power industry and Green Packet Bhd the telecommunication sector.
Other potential candidates were Nestle (M) Bhd, Dutch Lady Milk Industries Bhd and JT International Bhd, the research head said.
“Liquidity and free float could be an issue. But there are stocks on the KLCI currently which are low in liquidity.
“Market capitalisation is probably one of the biggest single factors,'' added Pong Teng Siew, head of research at MIMB Investment Bank.
Saturday, April 28, 2007
Monthly Portfolio 28-April-2007
There is a lot of movement in my portfolio this month. Firstly, i have adjusted the buying price accordingly after receiving the dividend from BJTOTO and MAYBULK. I have added 2000 units of LONBISC for a price of 1.68 and 1.64 respectively. Thus, making my total holding of LONBISC to 4000 units for an average price of 1.68, the reason for increasing the number is simple - "long term & good dividend payout". If you follow my previous posts closely, you will know that i'm one that favour on dividend stocks, that is my style. I always believe that dividend stocks are defensive stocks, irrespective whether the market goes up or down, i have a peace of mind holding on to my stocks unless some drastic or unexpected thing that tarnish the company image happened like terribly bad financial result, company being wind down due to poor governance, a catastrophic that causes the company's core business no longer a niche market and etc...
Secondly, i also bought in 2000 units of RESORT for an average price of 3.40 and 5000 units of YILAI at 1.23. These are my biggest buying spree so far for this month. Below is my latest portfolio, till then, "Happy trading".
Wednesday, April 25, 2007
Good Article - What triggers a downfall in the market?
Ooi Kok Hwa is a licensed investment adviser and managing partner of MRR Consulting and he writes on 'Personal Investing'.
AS a result of China's higher-than-expected economic growth of 11.1% and fear of possible further interest rate hikes in China, regional markets, including Malaysia, fell sharply last Thursday.
This was the second time after Chinese New Year (CNY) that a drop in Chinese stock prices rattled the markets across Asia.
According to Lee In Ho in his study on Market Crashes and Informational Avalanches, there are four stages in a market crash. They are boom, euphoria, trigger and panic.
Under the boom stage, the market will normally have a main theme that excites everyone about stocks.
In Malaysia, several positive measures under the Ninth Ma- laysia Plan got investors excited about the construction and property sectors. At this stage, this is seldom a bubble as companies continue showing good corporate results. A bubble will be created at the euphoria stage. The unjustified extrapolation of future earnings and the revision of higher target prices by research analysts can cause overconfidence in companies’ future performance.
A bubble will start to take shape when the general public reacts to this overconfidence. An irrational exuberance will occur when market prices and expectations about future values are far beyond the fundamentals of the companies.
However, no one will know when the rise will stop. A market will resume its upward trend until something triggers the downfall.
Usually, the stock prices get higher and steeper just before the market crash.
At the trigger stage, private information will reach a threshold that triggers other traders to alter their behaviour. At this critical situation, when almost everyone is at irrational exuberance, any event can trigger the market to tumble.
In January 1994, our stock market put the blame on former finance minister Tun Daim Zainuddin for saying that he had sold all his shares because prices had reached dangerous levels.
Until now, nobody can really understand the main reason behind the sharp plunge on the Shanghai Index right after the CNY.
According to some fund managers in China, the selling was mainly due to investors panicking when they noticed that their friends were selling stocks.
A famous researcher in behavioural finance, Robert Shiller, conducted a survey by asking institutional and individual investors what was in their mind during the stock market crash in 1987. One conclusion he drew was that the crash was due to people reacting to each other with heightened attention and emotion.
Investors seemed to follow what other investors were doing. As a result of action and reaction, a feedback loop was created when everyone had a simultaneous reaction to common stimuli.
A market crash is described as a process that corrects a public belief that is inconsistent with the current distribution of private information. The severity of a crash will depend on whether the market is filled by “new generation” investors or experienced traders.
“New generation” investors do not know anything about the stock market but are greedy and want to get quick money from it. A market will not crash if it has experienced traders who know how to control risk and when to cut losses.
However, if a market is filled by “new generation” investors with no holding power and do not know when is the right time to sell a stock, any sharp drop in prices could result in panic selling. At this panic stage, the fear of further drops could cause big fall in prices.
When will the stock market crash again?
My usual answer for this question is the stock market will not crash as long as you continue to worry about when it will crash. The market will crash at the time when you least expect it to happen. Investors should remember that the market always performs beyond your expectations.
We should not be too worried about when the market will crash. Instead, we should consistently review our portfolio and sell those stocks whose prices have gone beyond their intrinsic value.
AS a result of China's higher-than-expected economic growth of 11.1% and fear of possible further interest rate hikes in China, regional markets, including Malaysia, fell sharply last Thursday.
This was the second time after Chinese New Year (CNY) that a drop in Chinese stock prices rattled the markets across Asia.
According to Lee In Ho in his study on Market Crashes and Informational Avalanches, there are four stages in a market crash. They are boom, euphoria, trigger and panic.
Under the boom stage, the market will normally have a main theme that excites everyone about stocks.
In Malaysia, several positive measures under the Ninth Ma- laysia Plan got investors excited about the construction and property sectors. At this stage, this is seldom a bubble as companies continue showing good corporate results. A bubble will be created at the euphoria stage. The unjustified extrapolation of future earnings and the revision of higher target prices by research analysts can cause overconfidence in companies’ future performance.
A bubble will start to take shape when the general public reacts to this overconfidence. An irrational exuberance will occur when market prices and expectations about future values are far beyond the fundamentals of the companies.
However, no one will know when the rise will stop. A market will resume its upward trend until something triggers the downfall.
Usually, the stock prices get higher and steeper just before the market crash.
At the trigger stage, private information will reach a threshold that triggers other traders to alter their behaviour. At this critical situation, when almost everyone is at irrational exuberance, any event can trigger the market to tumble.
In January 1994, our stock market put the blame on former finance minister Tun Daim Zainuddin for saying that he had sold all his shares because prices had reached dangerous levels.
Until now, nobody can really understand the main reason behind the sharp plunge on the Shanghai Index right after the CNY.
According to some fund managers in China, the selling was mainly due to investors panicking when they noticed that their friends were selling stocks.
A famous researcher in behavioural finance, Robert Shiller, conducted a survey by asking institutional and individual investors what was in their mind during the stock market crash in 1987. One conclusion he drew was that the crash was due to people reacting to each other with heightened attention and emotion.
Investors seemed to follow what other investors were doing. As a result of action and reaction, a feedback loop was created when everyone had a simultaneous reaction to common stimuli.
A market crash is described as a process that corrects a public belief that is inconsistent with the current distribution of private information. The severity of a crash will depend on whether the market is filled by “new generation” investors or experienced traders.
“New generation” investors do not know anything about the stock market but are greedy and want to get quick money from it. A market will not crash if it has experienced traders who know how to control risk and when to cut losses.
However, if a market is filled by “new generation” investors with no holding power and do not know when is the right time to sell a stock, any sharp drop in prices could result in panic selling. At this panic stage, the fear of further drops could cause big fall in prices.
When will the stock market crash again?
My usual answer for this question is the stock market will not crash as long as you continue to worry about when it will crash. The market will crash at the time when you least expect it to happen. Investors should remember that the market always performs beyond your expectations.
We should not be too worried about when the market will crash. Instead, we should consistently review our portfolio and sell those stocks whose prices have gone beyond their intrinsic value.
Sunday, April 22, 2007
Saturday, April 21, 2007
Reveals the high dividend yielding stocks
Below is the compiled list of all high dividend yielding stocks. Those in light green are my preference at the moment. Take a look you may find your preferred stocks here. Bear in mind that these companies might not pay the same amount of dividend as they used to be, is very much depend on the company performance & result that lead them for consistent dividend payout.
Tuesday, April 17, 2007
Public Bank (1295, RM 9.25) first-quarter net profit up 23%
1st Qtr Net profit = 476million
Estimated annualise EPS = 56sen
Maintain target price = RM9.80
Thursday, April 12, 2007
More companies raising dividend
Hey, check this out:-
By YEOW POOI LING (Source : The Star 12 April 2007)
PETALING JAYA: High dividend yield stocks will provide support amid lingering concerns of market correction or weakening in the US economy.
OSK Investment Bank head of research Kenny Yee said dividend stocks helped “mitigate volatility in the portfolio” as they were more stable in terms of share price movement.
He noted that more and more companies were raising their dividend to reward shareholders.
“Companies realise that paying good dividends helps boost the share price as well as increase efficiency in capital management,” he said, adding that it also improved return on equity.
For example, Public Bank Bhd declared a total dividend of 60 sen per share for the year ended Dec 31, 2006. Since the dividend’s ex-date on March 16, the share price has appreciated 5.7% to RM9.20 yesterday, giving a total return of RM1.10 per share or total shareholders’ return of 12.6%.
Meanwhile, MIMB Investment Bank head of research Pong Teng Siew said during a market rally, investors tended to look for capital gain, hence stocks with attractive dividend yield only attracted “a certain type of investors.”
By YEOW POOI LING (Source : The Star 12 April 2007)
PETALING JAYA: High dividend yield stocks will provide support amid lingering concerns of market correction or weakening in the US economy.
OSK Investment Bank head of research Kenny Yee said dividend stocks helped “mitigate volatility in the portfolio” as they were more stable in terms of share price movement.
He noted that more and more companies were raising their dividend to reward shareholders.
“Companies realise that paying good dividends helps boost the share price as well as increase efficiency in capital management,” he said, adding that it also improved return on equity.
For example, Public Bank Bhd declared a total dividend of 60 sen per share for the year ended Dec 31, 2006. Since the dividend’s ex-date on March 16, the share price has appreciated 5.7% to RM9.20 yesterday, giving a total return of RM1.10 per share or total shareholders’ return of 12.6%.
Meanwhile, MIMB Investment Bank head of research Pong Teng Siew said during a market rally, investors tended to look for capital gain, hence stocks with attractive dividend yield only attracted “a certain type of investors.”
He said taking a defensive approach during a bull run might result in the loss of opportunity to make capital gains due to the low volatility of high dividend yielding stocks.
“Usually in a bull run like now, investors buy for capital gain and not for stable income because they do not want to risk under-performing the market,” Pong added.
Companies that had a stable recurring income would be able to sustain paying out high dividends, he said, citing examples like Chemical Co of Malaysia Bhd, Bintulu Port Holdings Bhd and Highlands & Lowlands Bhd.
“Usually in a bull run like now, investors buy for capital gain and not for stable income because they do not want to risk under-performing the market,” Pong added.
Companies that had a stable recurring income would be able to sustain paying out high dividends, he said, citing examples like Chemical Co of Malaysia Bhd, Bintulu Port Holdings Bhd and Highlands & Lowlands Bhd.
Sunday, April 1, 2007
Monthly Portfolio 30-March-2007
This month, I have disposed 2000 units of MAYBULK at a price of $3.52 and reducing my current holding to 2000 units. My act to do so is in fact to buy back the same units at a lower price and hopefully make some different out of it but i must admit i make a mistake here, my deed cost me a price where not only i won't be able to buy back, i may missed out the dividend and the impending bonus issue later on. I have bought 2000 units of LONBISC at $1.70 in my portfolio, high dividend payout (8%-9%) is part of my reason of buying this stock, further more the down side for LONBISC is low. Being a long term player, one should hold their stocks as long as he/she want, because over time we will tend to benefit from it. Another counter which is under my greate interest is AXREIT. This counter provide high dividend/income distribution of about 7%-8% each year, which indeed, i find it very attractive and it fall under my cup of tea where my focus is on high yielding generating stocks. Velo's blog has more detail writeup on this counter. Would consider buying AXREIT if price fall below $1.70. I have just received a dividend payout from PBBANK recently and it was a good dividend payout in fact where $400 per 1000 units was given out to its shareholder. I have adjusted the buying price for PBBANK in my portfolio accordingly (refer to below). Until then happy trading.
Saturday, March 24, 2007
KLCI - 23rd March 2007
KLCI inched higher to close at 1235.65. KLCI is definitely on the up trend and the momentum seem to have strengthen for the past week and the next level will be testing 1250 point and i believe that the KLCI is likely to break this level. Advise to hang on to your stocks for a little bit longer.
Tuesday, March 20, 2007
BJTOTO (1562, RM4.72) Something Fishy ?
Interestingly & particularly, this counter has drawn my attention lately due to the active share buyback from the company. See below chart:-
Saturday, March 17, 2007
KLCI - 16th March 2007
Sunday, March 11, 2007
KLCI - 9th March 2007
KLCI rebounded and is testing its psycological level at 1200 points, once it surpass this level the next level will be testing at 1217. Will this rebounce sustain ? Transaction volume is in a declining stage as shown in the above chart, does this means a sign of exiting by the investors ? Will history repeat itself of year 93-94 ? Looks very similar. Be careful folks, if possible try reducing your holdings. At this moment just wait and see whether the upside prevail and bringing back the confidence level to the market.
Sunday, March 4, 2007
Portfolio 04-March-2007
Obviously, with the down fall, my portfolio shrunk as compare to previous month. However, i have added 1000 units of BJTOTO in my portfolio but i must reckon that i got it on the high side. Will accumulate further if price fall further, this will certainly apply to my other stocks as well. Being a long term player, one should not bother much on the correction as this create opportunity for us to grab more quality stocks in our portfolio. I foresee KLCI will drop further next week, am now standing by to grab more stocks in case it fall to my level of price. Once again may the best price be yours. Happy trading.
Saturday, March 3, 2007
KLCI - 3th March 2007
26/2/2007 -- 1272.87 (-10.6)
27/2/2007 -- 1237.08 (-35.79)
28/2/2007 -- 1196.45 (-40.63)1/3/2007 -- 1180.91 (-15.54)
2/3/2007 -- 1164.68 (-16.23)
Needless to say, no matter how good was your recommendations are. It all turn out to be otherwise, that's no doubt about it. The question is will the KLCI find it footing and recover next week?? I am negetive to it. However this create chance for us to grab some quality stocks which we may have missed out earlier. The market have been bullish since last July 2006, it is time for a dip though this may have been affected by the overall worldwide market down turn. In every situation there is an opportunity, so find it and seize it. May the best price be yours.
Sunday, February 25, 2007
Buying List/Ideas
Stock Name : SILVER (7136, RM0.53)
Recommendation : BUY
Stock Name : NEXTNAT (0096, RM0.675)
Recommendation : BUY
Stock Name : MAYBULK (5077, RM3.48)
Recommendation : BUY
Stock Name : GOODWAY (7192, RM0.78)
Recommendation : BUY
Stock Name : EKOWOOD (5091, RM0.94)
Recommendation : BUY
Stock Name : CSCENIC (7202, RM0.92)
Recommendation : BUY
Happy trading...
Saturday, February 24, 2007
CARLSBG (2836, RM5.50)
Carlsberg’s financial year end net profit 85.904 million decrease by 3.13% and a final dividend 7.5sen & special dividend 24.5sen less tax was declared. As I mentioned earlier in my post normally the bigger portion of dividend will be declared around this time, the question is will this poor result constitute to a price drop in Carlsberg share or a total 32sen dividend is enough to cushion the drop or spite up the price?
One should not expect much on Carlsberg as this is the nature of this share all this while. I doubt the result will have any great impact on share price in fact it might surge further if it able to break through the resistant price at RM5.60 (refer to chart). Carlsberg is currently on the uptrend & always remain for dividend play in my portfolio and I would recommend HOLD on this stock.
One should not expect much on Carlsberg as this is the nature of this share all this while. I doubt the result will have any great impact on share price in fact it might surge further if it able to break through the resistant price at RM5.60 (refer to chart). Carlsberg is currently on the uptrend & always remain for dividend play in my portfolio and I would recommend HOLD on this stock.
Saturday, February 10, 2007
PBBANK (1295, RM9.00)
Considering the above record, which of the banking stock would you preferred? My selection criteria are simple, first, which one of the above provides me the best dividend yield and second, what’s the recommendation from the broker. Undoubtedly, PBBANK met my criteria for this instance. Firstly, why am I stressing so much on dividend payout? The reason is simple, dividend provide cushion and regular income stream in case your stock turn south. On the other angle, dividend gives good return value to your investment if stock price appreciated. In the long run it certainly benefited. Secondly, brokers recommendation is usually has it own potential value there as these are public researches normally reflect the true picture of a company and what the market think not basing on own assumption. Thus, potentially market will tend to follow or agreed rather than objecting it but again is it the right time to acquire? Timing plays an important role as during bull time one may tend to enter a higher price and during bear time you may lucky to get it cheaper. Technically, PPBANK is on the uptrend but at this juncture I would buy on weakness.
Sunday, February 4, 2007
Portfolio 04-Feb-2007
Last week, try placing BJTOTO at $4.60 but did not get any as the selling are low at this price. However have increased my portfolio by buying CARLSBG at $5.25. There are two simple reasons for it, firstly, i am a long term player and the CNY is near, certainly the beer consumption is high during this festive season and secondly this stock hasn't move much as compare to others and usually it will declare its dividend somewhere around this time and normally is the bigger portion of the dividend declared. CARLSBG is certainly a good stock for dividend play.
Sunday, January 28, 2007
Portfolio 28-Jan-2007
My portfolio total gain increase from 76.5% to 81.3% last week. Very much thanks to PBBANK jump from 7.90 to 8.55. At this moment i will not increase my portfolio except for BJTOTO but again is very much depend on how the market will perform next week. I must reckon that is very risky to put your bet right now but when there is an opportunity i will certainly seize it.
Saturday, January 27, 2007
BJTOTO (1562, RM4.64) is worth for a quick trade
My guts feeling this stock is worth for a quick trade, it hasn't move any compare to others blue chip stocks. The upside looks very bright, even if it were to turn south, there is always a dividend to cushion which will be paying somewhere around in April. Worth for a try.
Look at the chart above, high was at $4.98 on 30 Nov 2006 and drifting down after that. At this price should be quite reasonable to enter/accumulate. I would adopt a hit & run approach to ride on this "bull", probably with a higher load this time round as i must agreed the greed has succumbed me right now...he..he
Friday, January 26, 2007
BJTOTO - Another Typical Example
Another typical example on BJTOTO :-
Buy Price : $3.90
Buy Date : 19 Dec 2003
Closed Price as at 27 Jan 2007 : $4.64
B) Dividend earned + Capital Repayment
C) % return per year
Wah Oooo.... a 24.05% per year, what more do you want to ask for ?? Lets imagine this, if i spend $4 a week betting on 4-digits. One year i will be spending a total sum of $208 and losing it if luck was not on my site. What happen if i merely invest $4000 on BJTOTO and i got a return of 24% equivalent to $960 every year. Does this sound better to you ? This ensure you striking 4-digits every year. You risk your money betting on numbers, whereas I'm "betting" on company that invented the number games.......
Buy Price : $3.90
Buy Date : 19 Dec 2003
Closed Price as at 27 Jan 2007 : $4.64
Dividend Payout Table :-
* Those highlighted yellow were Capital Repayment.
* Those highlighted yellow were Capital Repayment.
A) Share price appreciation = 4.64 - 3.90 = 0.74
$740.00
B) Dividend earned + Capital Repayment
$2074.05
C) % return per year
(A + B)/3900 * 100 = 72.15%
72.15% / 3 = 24.05%
72.15% / 3 = 24.05%
Wah Oooo.... a 24.05% per year, what more do you want to ask for ?? Lets imagine this, if i spend $4 a week betting on 4-digits. One year i will be spending a total sum of $208 and losing it if luck was not on my site. What happen if i merely invest $4000 on BJTOTO and i got a return of 24% equivalent to $960 every year. Does this sound better to you ? This ensure you striking 4-digits every year. You risk your money betting on numbers, whereas I'm "betting" on company that invented the number games.......
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