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.

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