Wednesday, July 2, 2008

Sold PBBANK (1295) at RM10.20

Political uncertainty and market heading south, this trigger my decision in off loading PBB for the time being. Will definitely buy back this giant when it dip, hope that i did not make the wrong decision by getting rid of this golden goose that really lay eggs. Market sentiment is just bad, it might drift down further. Feel a bit uneasy while selling PBB, in fact i have been keeping this giant for almost 6 years. The capital appreciation, bonus and dividends received thus far has giving me an approximately 500% gain if calculation is not wrong, that indeed a handsome gain considering an average of 83% per year. Wow...So, all the best and good luck to you guy. I am staying out at the moment.

4 comments:

Anonymous said...

horse, i think you made a right move. I have toyed around with that idea too. to get out of PBBank but NOT to get into it (PBB) straight when the market platform stablises. but thru BURSA.

let me explain. Bursa has seen it's good golden days and the foreign selling has it bashed down by some 155%!!! from the height of RM16++. if you get into BURSA say later when it gets down to RM4++ imagine what the bull market can do to your BURSA when they comes round the mountain???

You can always switch back to PBBank after Bursa's share has floated up to some comfortable level. I bet it will recover faster than PBBank and to a higher level. But that's just my 2 sens. Let me warn you: Get in at your own risk!! I am not responsible for any damage done thru this "back door" game. I am doing so with a calculated risk. I am in this time.. good luck to you. friend...

horse said...

elmo1988, thanks for the sharing. I don't think this is a "back door" game, this is just a stretagy adopted by you. It maybe true that Bursa has came down from it height of RM16++ but at this moment i don;t think is right price and time to go in as yet. I used to keep this Bursa at RM4.30 and liquidated at RM7.65, it went up further since then and never look back, that make me to decide keeping PBBANK till yesterday (PBBANK was hovering around RM6+ to RM7+ at that time). You are right, in the sense that Bursa can recover faster than PBBANK but PBBANK is a growth stock which you will find it solidity over time.
Bursa is something that never dying stock, is worth keeping an eye when it trading really low valuation during bear market. At this moment i'm still waiting, probably is going to be a long wait....

Anonymous said...

Horse, may be you are right. We may have to wait long for Bursa to come down further. BUT after today's earthquake.. everything from najib to Bursa's "holiday" to Anwar's backside story etc I believe we do not have to wait long.

PBBank IS a growth stock. I agree. For discussion, no hard feeling. I have few things in mind.
1. There is only one Bursa, but we have a bundle of banks around! when Bursa is beaten down I will go in... in a big way!! It will certainly float again and fast when the market recovers.

2. PBBank IS a growth stock but we cannot look to the past to project the probable future growth for PBBank. And also history tells us it cannot grow forever! today Vietnam is in trouble.. > 20% inflation/interest rate? who can survive? I don't think any bank can last long under such load. PBBank went into Vietnam in a big way like Gamuda. But it's PBB's other sources of income giving him the support that bashed down Gamuda to it's today's state.

Still there are more than one road to Rome.

elmo

horse said...

wow...elmo1988, i really admire you. You seem to have unlimited sources to go big way. I start to like your approach but i can't affod to do so at the moment as my stretagy is on dividend yielding and really longterm. Some how after deep thinking, i really like your method as this really flourish faster than my way, though the risk of dumping big is higher but the rewards is enormous. Well done friend, you deserve my credit. Will consider adopting your method when time come.

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