Monday, April 28, 2008

Highest Dividend Ever for Year 2007

This month is income tax month for everyone, due date for submission of your income tax is end of April. As usual i compiled my income tax like everyone do and did it almost last minute. I just filed my income tax through e-filling which i started doing so since last year, find it quite convenient. The biggest headache for me is to understand the re-gross thing on my dividends which i have been collected since the whole year of 2007, where the corporate rate for year 2008 has been reduced to 26%. To my surprise when i work out the calculation, the re-gross will in turn to our disadvantage. Last year indeed is my harvest year, i collected the highest dividend that i ever had and is all time high of my investment so far. The dividend collected over my principal investment is approximately about 8% to 9% which indeed is a good return compare to FD rate, this has not factor the appreciation of share price. Certainly will look for more if market permit for year 2008.

Friday, April 18, 2008

Bought Tenaga (5347) at RM6.80

Bought back Tenaga at RM6.80 today. Though, this is not my ideal purchase price but at current price, i think is worth buying in some while waiting for next level of purchase at around RM6 to RM6.50 if it does drop to this range. I must admit that buying this type of stock at current PE is quite a save bet even though it can trade lower but the risk is significantly reduce. One can adopt averaging downward strategy from this level or one can opt to wait further. As i said before, no one can predict future, if one claims that he can know the up and down before hand, then he/she must be God and he/she must have some super natural power beyond human being. No one can buy lowest nor sell the highest, we know that this is the fact of trading. One can only make assumptions like buying when PE is low (a very safe strategy but not necessary guaranty return but at least mitigate risk) or buying when it produce good earning and have good prospect of future earnings or buying when everyone is buying during super bull. Whatever method you adopt, try use the method that always produce you result. In my case, i played dividend stocks, of course pick the good one like PBBANK, MAYBULK, GUINNESS, CARLSBERG, PANAMY, BJTOTO and etc... but when to pick it, is the key and important area one must exercise cleverly. First set your buying conditions and what will that be ?? I think up to individual preferences, i buy when PE reasonably low in bearish or crash market, i buy when there is good earning and sustainable future earning, i buy when dividend payout is good and better than FD rate, i buy when trend is allow me to do so. In this case Tenaga happen to fall in my conditions. Till then, happy trading & may the best price be yours.

Tuesday, April 15, 2008


Just sold my IOICORP at RM7.15. There being not much excitement to KLSE lately, temporary ease out this stock and take a profit from the purchase price of RM5.75. Still searching for opportunity to enter the market again but hard to look for one now, my strategy is waiting and waiting until i manage to spot one. For now, US economy is not in good shape and local political tussle causing market uncertainty. Is good to take a step backward and see how the whole thing turns out. Frankly, in such a situation, day trader is hard to find any dime here. What need to be done here is to swing your appetite to dividend play which i think is the best defensive way in dealing current market while waiting for a more clearer picture on the market. I am particularly, eyeing on TENAGA which its has been drifting down from RM12 all the way to a mere RM7 and at current price its PE stood at around 7.3 which is relatively low. Recent announcement by TENAGA where it registered a 1H net profit 2.578 billion (decreased 7.96%), this decrease expected to be sustained in the next half in my opinion, we shall see this giant hovering around this price at the moment. Personally, i think is worth looking into this guy when it fall to the region of RM6 - RM6.5 region. Of course, this does not recommend a buy, it is totally your responsibility while exercising your decision. Happy trading.

Tuesday, April 8, 2008

Market Jargon

This is funny though :-

Market Jargon

Bull market :
a random market movement causing an investor to mistake himself for a financial genius.

Bear market :
a six- to eight-month period when the kids get no allowance, the wife gets no jewellery and the husband gets no sex.

Momentum investing :
the fine art of buying high and selling low.

Value investing :
the art of buying low and selling lower.

P/E ratio :
the percentage of investors wetting their pants as the market keeps crashing.

Broker :
poorer than you were last year.

Buy, buy :
a flight attendant making market recommendations as you step off the plane.

Standard and Poor (S&P):
your life in a nutshell. [that's me me me!!!]

Stock analyst :
idiot who just downgraded your stock.

Market correction :
the day after you buy stocks. [that's me me me too, Duh!!!]

Cash flow :
the movement your money makes as it disappears down the toilet.

Institutional investor :
past year investor who is now locked up in a nut house.

EBITDA : earnings before I tricked the dumb auditor.
EBIT : earnings before irregularities and tampering.
CEO : chief embezzlement officer.
CFO : chief fraud officer
EPS : eventual prison sentence.

Friday, April 4, 2008

Public Bank is Tops

Friday April 4, 2008
Public Bank is tops
PETALING JAYA: CIMB Equities Research has chosen Public Bank as its top pick among Malaysian banks, beating all its Malaysian peers on most operating aspects, including returns on equity (ROE), asset quality, loan growth and efficiency.
In a research note issued yesterday, it said Public Bank’s ROE was the highest in the sector and still improving. The bank also had the most compelling dividend yield, double-digit earnings growth, highest loan growth and superior asset quality, it added.
Other factors are the strong deposit franchise, greatest efficiency, new growth avenue in bancassurance, increased overseas contributions, and award-winning ability. The research house has raised financial years 2008 to 2010 net earnings by 1% to 4%, primarily for 26% to 38% cuts in loan loss provisioning.
In its dividend discount model (DDM), it raised the assumed dividend growth rate for the interim phase to 7.2% from 6.7%, resulting in a higher target price of RM14.60 compared with RM13.90 before, which is still pegged to a 10% discount to the DDM valuation.
“We continue to rate Public Bank an ‘outperform’, premised on the re-rating catalysts of continuing ROE improvement to one of the highest in Asia, a jump in FY08 dividend payment, stronger-than-expected contributions from Greater China, lower charge-off rates, and new growth avenue in bancassurance.
“Also, with a dividend yield of more than 9%, Public Bank has the best yield among the Malaysian banks,” it added.
CIMB Research said it considered Public Bank’s end-FY08 price/book value of 3.8 times to be reasonable, given its superior ROE and enticing dividend yield.
“In fact, we view its valuation as undemanding as its FY09 price/earnings of 12.7 times is below its five-year average of 14 times and does not fully reflect the improving ROE, dividend yield and asset quality,” it said.

Thursday, April 3, 2008


Sold my Tenaga at 7.40 for a small gain. Market looks very uncertain, reduce my holding to seek better opportunity.

Received Dividend from IOICORP, LONBISC & MNRB

Have just gotten my dividend payout of above counters. IOICORP interim 7sen, LONBISC first and final 5% and MNRB of 2nd dividend 5% respectively. Obviously, would expecting more payout in the near future. In the pipeline, BJTOTO, CARLSBG, GUINESS and MAYBULK are also declaring thier dividend payout as well. I particularly like MAYBULK's 30sen tax exempted, this translate to a 7% return of current price, is much higher comparing fixed deposit with mere 4%. The next in line which i expect a good dividend payout is PANAMY, PANAMY has a Nine-month net profit 40.825 million (increased 20.57%) would expect a 4th qtr result in end May and declaring its dividend in around end July. I guess it would be like final dividend of RM1 T.E which translate to a 9% return. Looks very much attractive, just got to wait patiently. Now you know why dividend play is such a boring waiting game, but the reward is slowly and surely. Till then happy trading.
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