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.

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 ????

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.

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.

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.